Shuen Der Industry Mitsubishi Shindoh sign pact

Shuen Der Industry, Mitsubishi Shindoh sign pact

According to the agreement, Shuen Der Industry will pay royalties to Mitsubishi Shindoh for the delivery of its production equipment as well as related technologies.

Friday, March 12, 2010

TAIWAN: Shuen Der Industry (SDI), the leadframe manufacturer based in Taiwan, has signed a technology cooperation pact with Mitsubishi Shindoh, based in Japan, for producing copper strips for leadframes.

According to the agreement, Shuen Der Industry will pay royalties to Mitsubishi Shindoh for the delivery of its production equipment as well as related technologies.

In addition, Mitsubishi Shindoh will take up shares in SDI through a private placement.

In a statement, Mitsubishi Shindoh said it will initially invest NT$250 million (US $7.86 million) in Shuen Der Industry – with the total investment going up to NT$500 million in the future.

Mitsubishi Shindoh said it will deliver its equipment in Malaysia to the plant of SDI in Nantou, Taiwan, in the third quarter of 2010, with the volume production scheduled for the fourth quarter. The equipment, according to Mitsubishi Shindoh, is expected to produce 300 tons of materials, which will account for 40 per cent of the total material demand of SDI.

Mitsubishi Shindoh will move its second line to SDI in 2011 – with a monthly production volume of 600 tons.
SDI said in a press release that it expects its revenues increase by 40 per cent, on year, in 2010 thanks to bigger orders of discrete leadframes from IDMs and OEMs based in China.

Shuen Der Industry says it is the top supplier of discrete leadframes, with a 25 per cent global market share.

©CIOL Bureau