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July 2, 1997

Doc. No.: Topic90E

New Plant to Allow Production of Fabrication Equipment for Gigabit-Level Next-Generation Memories

Dainippon Screen Mfg. Co., Ltd., (headquarters: Kamigyo-ku, Kyoto; president: Akira Ishida) has finalized plans to build a new plant in Taga, Shiga Prefecture, to produce semiconductor manufacturing equipment. Construction will begin in September 1997, and production is slated to commence in October 1998. Capital investment in the plant is expected to amount to 7.0 billion Yen. New Factory

Dainippon Screen develops, manufactures and markets semiconductor manufacturing equipment used in wafer processing worldwide. The Company's lineup of products includes coater/developers; scrubbers, which are used in single-wafer cleaning; and wet stations, which are used in batch cleaning of semiconductor wafers. Currently, Dainippon Screen manufactures this equipment at its Rakusai Plant, in Kyoto, and its Yasu and Hikone plants, in Shiga Prefecture.

Although many semiconductor manufacturers are suspending large-scale capital investment for the present, Dainippon Screen expects investment to accelerate as these manufacturers tool up for the mass production of 64-megabit dynamic random-access memories (DRAMs), and the post-year 2000 manufacture of 1-gigabit DRAMs and other chips using 300-millimeter wafers. Consequently, the Company looks forward to expansion in the market for semiconductor fabrication equipment in the medium to long term.

Dainippon Screen's three primary semiconductor equipment plants are currently operating near capacity. The new plant will raise the Company's production capacity and allow it to manufacture equipment for processing next-generation chips, including those using 300-millimeter wafers.

The new plant will have a high-level clean room capable of manufacturing 1-gigabit DRAM fabrication equipment ranging from module assembly to final adjustment, testing and packaging. During its first year of operation, the plant will be capable of producing coater/developers, scrubbers and other spinners at a rate of 50 units per month, generating annual revenues of approximately 50 billion Yen. This level of production will double the Company's production capacity.

The new plant, which will be constructed on a 30,000 square meter site, will be a three-story facility occupying 11,000 square meters, with total floor space of 30,000 square meters. The first and second stories of the plant will house clean-room facilities. Initially, the plant will employ 250 Dainippon Screen personnel, as well as 400 people from subcontractors.

Outline of Plant Site:Shiga Prefecture
Main activities:Production of semiconductor manufacturing equipment
Construction start:September 1997
Expected completion:August 1998
Start of operations:October 1998
Area of site:30,000 square meters
Total floor space:30,000 square meters

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