Showa Denko K.K. will increase its capacity to produce aluminum substrate for HD media through consolidated subsidiary Showa Denko HD Yamagata K.K. (SHDY), raising the group’s production capacity by 30% and thereby strengthening its hard disk (HD) business.
SDK’s policy decision to increase supply capacity and diversify and strengthen its supply chain has been qualified by the Ministry of Economy, Trade and Industry (METI) as eligible for subsidy under the government’s “Program for Promoting Investment to Strengthen Supply Chains in Japan “.
With the launch of 5th generation mobile communication (5G) service, the spread of the Internet of Things (IoT), the penetration of telework, and the development and expansion of digital transformation, the volume of data communication is expected to continue to increase dramatically. As a result, the demand for hard disk drives (HDDs) for data centres has been growing significantly. As most of our supply capacity is concentrated in Malaysia, it is necessary to secure a more stable supply chain against the spread of the new coronavirus worldwide.
In order to solve this problem, we have decided to expand our aluminum substrate production capacity at SHDY, our domestic base, in order to increase our supply capacity and to further diversify and strengthen our supply chain. Construction of the new facility will begin in February 2021, with mass production scheduled to commence in early 2022.
The Group’s vision is to become a KOSEIHA company (an alliance of KOSEIHA businesses that can maintain a high level of profitability and stability over time), and the HD business is one of our KOSEIHA businesses. As the world’s largest external HD media manufacturer, we will continue to support an ever-expanding and evolving digital society and expand our business by rapidly introducing world-class products to the market under the motto of “Best in Class”.
