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SDK will begin production of high-purity ammonia in Taiwan from May 2005 through a new subsidiary that will build a 1000-ton-a-year plant at Tainan.
High-purity ammonia is increasingly used in the production of gallium-nitride LEDs and laser/electronic devices, and of semiconductors and LCDs.
(Ammonia serves as a nitrogen source in the former application and as a nitride-film-forming gas in the latter).
World demand for high-purity ammonia is expected to increase from around 3000 tons in 2004 to 6000 tons by 2008, due to sharp increases in demand in Japan, Taiwan and South Korea.
Specifically, demand for use in LCD production is forecast to increase at an annual rate of 20-25%, centring on Taiwan and South Korea, and demand for use in LED production will grow at 10% or more, mainly in Japan and Taiwan.
SDK is already producing approximately 1000 tons a year of high-purity ammonia in Kawasaki, Japan.
The majority of the output is being exported to Taiwan, where SDK has a market share of about 50%.
To meet further growth in demand for high-purity ammonia in Taiwan, particularly for LCD applications, SDK is setting up a new subsidiary named Taiwan Showa Chemicals Manufacturing Co.
The new company will have its head office in Taipei and build its plant in Tainan.
SDK will own 80% of the company while Young Sun Chemtrade and Showa Specialty Gas (Taiwan) will own 10% each.
The new company will adopt SDK's purification technology and Quality control system to provide high-quality product and services and ensure competitiveness of the operation.
 

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