FUJIFILM Electronic Materials Co. Ltd (FFEM), a subsidiary of FUJIFILM Holdings Corporation (FUJIY), has recently announced to expand its business in South Korea. The company plans to set up semiconductor material manufacturing company along with 95% capital participationf rom the Fujifilm Group.
FFEM, which manufactures and markets semiconductor material, signed a contract with exax Inc. for the remaining 5% capital participation as a step toward establishing the joint venture. The new contract includes transferring of some of exax’s assets like factory facilities to the new company. It is worth mentioning that over time, South Korea has been increasing its presence in Asian semiconductor market, which the new venture (slated to start in March 2012) is expected to leverage on.
Established in 1976, exax supplies display and other materials to South Korea’s major display manufacturers. The new venture is anticipated to make effective use of exax’s presence in the Korean market with its existing land, buildings and facilities for supplying electronic material products to the major semiconductor manufacturers. Moreover, the products, manufactured by exax, are compatible with the cutting-edge semiconductor manufacturing processes based on Fujifilm’s proprietary technologies.
On the other hand, Fujifilm has plans to build a system for globally supplying highly-functional materials, equipment and services for semiconductor manufacturing, positioning it as one of its priority businesses. The company hopes to expand in Asia, US and Belgium through FFEM’S operations base for the development of the semiconductor device industry. The venture is thus expected to boost the company’s sales of semi conductor material in South Korean semiconductor market while maintaining its high level of growth in the upcoming quarters.
Fujifilm is a leading global producer of photographic imaging products. The company develops, manufactures, and markets traditional and digital imaging products. The establishment of this semi conductor manufacturing subsidiary is anticipated to boost its capacity to address customer needs and streamline delivery while maintaining the level of customer satisfaction in the coming years.
