Sets up two new companies, one for the manufacture of silicone materials for high-brightness LED packaging and the other for the separation and refinement of rare earths

Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President: Shunzo Mori) has established its first two Shin-Etsu Group companies in the Socialist Republic of Vietnam: Shin-Etsu Electronics Materials Vietnam Co., Ltd. for the manufacturing of silicone-based materials for high-brightness LED packaging and Shin-Etsu Magnetic Materials Vietnam Co., Ltd. for the separation and refinement of rare earths, which are the main raw materials of rare earth magnets. The total investment amount for setting up both companies is ¥5 billion (¥3 billion for materials of high-brightness LED packaging and ¥2 billion for the separating and refining of rare earths). The former company is scheduled to start operations in March 2013 and the latter company in February 2013.
This is the first time that the Shin-Etsu Group is setting up production bases in Vietnam. By having production bases in Vietnam, Shin-Etsu can take advantage of the demand in Vietnam and its neighboring countries where economic growth is also expected in the future. In addition, in view of its excellent workforce with its high level of education and diligent national character and the country having the infrastructure that is necessary for manufacturing, we came to the conclusion that Vietnam is the most suitable country in which to make this investment.
1) Shin-Etsu Electronics Materials Vietnam Co., Ltd.
Shin-Etsu Chemical has been continuously putting on the market new silicone-based products for LEDs, including silicone encapsulating materials for high-brightness LED packaging, silicone reflector materials and protective film materials that easily convert the wavelength of light. Shin-Etsu is the world's top maker in these product fields.
In Asia, many plants for LED-based products are located in each country, and because significant growth is expected both in the mid- and long-term, Shin-Etsu has now decided to produce silicone encapsulating materials and reflector materials in Vietnam. In addition, at this production base, going forward we plan to successively add new products for LED packaging materials and expand their production. By building a new production system in the regional area where demand is, Shin-Etsu will be able to take better advantage of the rising demand in the Asian market, which is the most vigorous in the world market. Moreover, because Shin-Etsu will achieve the dispersion of risk through the establishment of plural production bases, together with Shin-Etsu's Gunma Complex (Annaka-shi, Gunma prefecture), it will further strengthen the Shin-Etsu Group's world's No.1 position in the business of materials for LED packaging.
Outline of new company for manufacturing materials for high-brightness LED packaging