SHIN-ETSU CHEMICAL CO., LTD. Sources of Our Competitiveness
Sources of competitiveness that support
the sustainable development of the Shin-Etsu Chemical Group
Sources of | Business Activity | サステナビリティ | Value Created | Vision | ||||
Sustainability | ||||||||
Our Competitiveness | ||||||||
Financial Capital
Manufacturing Capital
Financial Capital
We will promote capital investment for sustainable growth while further strengthening our financial base through earnings growth
Improved profitability through full production effect and sales capabilities
Human Capital
For the fiscal year ended March 31, 2023 (FY2022), as in the previous fiscal year, operating income in the Infrastructure Materials business
Equity ratio/Net assets
Intellectual Capital
Social and Relationship Capital
Natural Capital
Management Foundation
grew significantly thanks to our full production effect and sales capabilities in PVC resin, and other business segments also achieved double-digit profit growth rates. Net income attributable to owners of parent was ¥708.2 billion (up 42% year on year), a significant record high for the second consecutive fiscal year. Total net assets were ¥4,026.2 billion (up 17% from the end of the previous fiscal year), and the equity ratio remained above 80%. On these solid financial foundations, the Company further improved its capital efficiency to 33.6% ROIC and 19.7% ROE.
Equity ratio
(as of March 31, 2023)
81.8%
Net assets
(as of March 31, 2023)
4,026.2 billion yen
(%) | (¥ trillion) | |||
100 | 5 | |||
80 | 4 | |||
60 | 3 | |||
40 | 2 | |||
20 | 1 | |||
0 | 0 | |||
3/2019 | 3/2020 | 3/2021 | 3/2022 | 3/2023 |
Equity ratio (LHS) | Net assets (RHS) | |
Continued capital investment for sustainable growth
To enhance competitiveness and sustain growth, we seek to enhance corporate value through the active and timely use of internal reserves.
Capital expenditures/Depreciation and amortization
Manufacturing Capital
We aim to achieve sustainable growth by monitoring global demand trends and making timely and appropriate capital investments
Domestic production bases:
17 companies, 40 bases
Human Capital
Developing optimal staffing with T-shaped skill human resources in pursuit of a more efficient, smarter, and leaner way of working
Operating income per employee
38.8 million yen
The Shin-Etsu Group's capital investment in FY2022 totaled ¥318 billion (up 48.7% year on year). We made progress as planned with investments to increase capacity in Shintech's PVC resin and high- performance silicone product lines, and promoted capital investments to ensure a stable supply and improve the quality of silicon wafers and other electronics materials. Capital investment for FY2023 is expected to be ¥380 billion.
Capital expenditures
(for the year ended March 31, 2023)
318.0 billion yen
(¥ billion) | ||||
400.0 | ||||
300.0 | ||||
200.0 | ||||
100.0 | ||||
0 | ||||
3/2019 | 3/2020 | 3/2021 | 3/2022 | 3/2023 |
Financial Capital
We will promote capital investment for sustainable growth while further strengthening our financial base through earnings growth
Equity ratio | 81.8% |
Net assets | 4,026.2 billion yen |
Capital expenditures 318.0 billion yen
Overseas production bases:
17 countries, 65 bases
Capital expenditures | Depreciation and amortization | |
Flexible share buybacks on top of eighth consecutive year of dividend hikes
Intellectual Capital
Promoting rapid, field-linked R&D and strategic IP management to protect our business
Equity ratResearch centers located inside plants
Selected as Clarivate Top 100 Global Innovator™ for 12 consecutive years
Social and
Relationship Capital
Respecting human rights and emphasizing the building of healthy relationships with local communities
Natural Capital
Having planned to achieving carbon neutrality by 2050, we will focus even more on efforts to reduce greenhouse gas emissions
Greenhouse gas emissions
(emission intensity index of production volume
relative to FY1990) | 54.2% |
Our basic policy is to focus on growing business earnings and maintaining solid financial foundations while returning the results of our management efforts to our shareholders in a long-term and stable manner, with a medium- to long-term dividend payout ratio of around 35% as a guide. Accordingly, in FY2022 we paid an annual dividend of ¥500 per share, an increase of ¥100 from the previous fiscal year and a payout ratio of 28.7%. This was the eighth consecutive year of increased dividends. Furthermore, as part of our efforts to return profits to shareholders, we repurchased and retired 11.83 million shares of treasury stock (valued at approximately ¥200 billion), representing 2.8% of the total number of issued shares. Note that on April 1, 2023, the Company executed a 5-for-1 stock split of its common stock.
Cash dividends per share/Payout ratio
(Yen) | (%) | ||||||||
500 | 50 | ||||||||
400 | 40 | ||||||||
300 | 30 | ||||||||
200 | 20 | ||||||||
100 | 10 | ||||||||
0 | 0 | ||||||||
3/2014 | 3/2015 | 3/2016 | 3/2017 | 3/2018 | 3/2019 | 3/2020 | 3/2021 | 3/2022 | 3/2023 |
Interim (LHS) | Year end (LHS) | Payout ratio (RHS) |
14 Shin-Etsu Chemical Co., Ltd.
ANNUAL REPORT 2023 | 15 |
Sources of Our Competitiveness
Manufacturing Capital
We aim to achieve sustainable growth by monitoring global demand trends and timely and appropriate capital investments
Basic policy on capital investment
Production bases | PVC | Cellulose derivatives | Rare earth magnets | |||
for major products | Silicones | Semiconductor silicon | Photoresists | |||
Overseas production bases: 17 countries, 65 bases | |||
In addition to building a local production system directly linked to local demand, the Shin-Etsu | |||
Group has 65 overseas production bases in 17 countries, mainly in regions with low country | |||
risk, to ensure that our production costs are the most competitive in the world. By establishing | |||
Americas | multiple production bases globally, we are strengthening our ability to ensure a stable supply | ||
to our overseas customers, who account for approximately 80% of our sales. | |||
In order to fulfill its supply responsibilities as a material | companies around the world. Our solid financial base and |
manufacturer, the Shin-Etsu Group makes timely and | ability to generate cash flow enable us to make flexible |
appropriate capital investments to strengthen stable | decisions and aggressively invest even in an ever-chang- |
supply and improve quality based on long-term demand | ing business environment. |
forecasts and requests obtained from industry-leading |
Current status of capital investment
We are steadily making capital investments that support | improvements and streamlining, quality improvement, | ||||||||||||||
the growth of the Group, including a PVC resin facility | maintenance, upgrades, and environmental measures. | ||||||||||||||
expansion project at Shintech Inc. in the U.S., as well | The status of major capital investments is as follows. | ||||||||||||||
as production capacity enhancement, productivity | |||||||||||||||
Investments from 2019 onward (that have been announced) | : Completion | : Completion Schedule | |||||||||||||
Business | Products | Projects | Investment | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||||||
Segment | Amount | 1H | 2H | 1H | 2H | 1H | 2H | 1H | 2H | 1H | 2H | 1H | 2H | ||
Europe
Asia |
Message from our production site employee
Further boosting capacity at the world's
No. 1 PVC plant
I'm in charge of the expansion of the PVC manufacturing plant at Shintech's Plaquemine Plant in Louisiana. My main responsibilities are manufacturing process design, procurement of manufacturing facilities and equipment, on-site construction supervision, comprehensive construction process management, and commissioning to confirm plant performance as designed. The current expansion represents approximately 10% of Shintech's PVC production capacity (an increase of 380,000 tons/
year) and is expected to further expand sales and strengthen our competitiveness worldwide. The current global uncertainty has led to soaring material prices and delays in delivery
dates, requiring us to adapt our construction work. Nevertheless, the facility expansion project team is working together to complete the construction within the specified budget and timeframe, while adhering to safety first and environmental compliance.
Ethylene | New plant built (U.S.) | $1.4 billion | |||||||||||||||||
Infrastructure | |||||||||||||||||||
PVC | New facility expansion [Phase 1] (U.S.) | $1.49 billion | |||||||||||||||||
Materials | |||||||||||||||||||
" | New facility expansion [Phase 2] (U.S.) | $1.25 billion | |||||||||||||||||
Production capacity enhancement (Japan, | |||||||||||||||||||
Photoresists | ¥30 billion | Taiwan | Naoetsu | ||||||||||||||||
Taiwan) | |||||||||||||||||||
Production capacity enhancement (two sites | |||||||||||||||||||
Photomask blanks | ¥14 billion | Naoetsu | Takefu | ||||||||||||||||
in Japan) | |||||||||||||||||||
Electronics | |||||||||||||||||||
Jiangsu | |||||||||||||||||||
Materials | Preform for optical fiber | Production capacity enhancement (Japan, | ¥18 billion | Kashima, | |||||||||||||||
Hubei | |||||||||||||||||||
two sites in China) | |||||||||||||||||||
Low dielectric constant | |||||||||||||||||||
thermosetting resins for | Investment in mass production (Japan) | ¥3 billion | |||||||||||||||||
5G products |
Domestic production bases: 17 companies, 40 bases | Japan |
We have 17 companies, including Group companies such as Shin-Etsu Handotai Co., Ltd. and JAPAN VAM & POVAL Co., Ltd., as well as 40 production bases in Japan, including Shin-Etsu Chemical's four production bases in Naoetsu (Niigata Prefecture), Takefu (Fukui Prefecture), Gunma Complex (Gunma Prefecture) and Kashima (Ibaraki Prefecture). Especially in Japan, the R&D division is located on the premises of each plant, which quickly develops products that meet the needs of customers and is the starting point of cutting-edge technology as a mother plant.
Silicones | Production capacity enhancement for | ¥2.4 billion | |||||||||||||||||
various silicone products (U.S.) | |||||||||||||||||||
" | Production capacity enhancement for mono- | ¥110 billion | Sequential start-up and completion | ||||||||||||||||
mers and polymers (Japan, Thailand, etc.) | |||||||||||||||||||
Investments contributing to reducing | |||||||||||||||||||
greenhouse gas emissions (Japan) | |||||||||||||||||||
Sequential start-up and completion | |||||||||||||||||||
Functional | " | (Expansion of gas turbine power generation | ¥20 billion | ||||||||||||||||
Materials | facilities and products that contribute to the | ||||||||||||||||||
environment) | |||||||||||||||||||
Production capacity enhancement for | |||||||||||||||||||
Sequential start-up, completion date undecided | |||||||||||||||||||
" | high-performance products (three sites | ¥80 billion | |||||||||||||||||
in Japan) | |||||||||||||||||||
Cellulose derivatives | Expansion of manufacturing facilities | ¥20 billion | |||||||||||||||||
(Japan, Germany) | |||||||||||||||||||
Message from our production site employee
Increasing the productivity of high-value-added products and contributing to the expansion of our global market share in silicones
I've been consistently involved in the expansion of our silicone manufacturing processes from formulation study to equipment design, construction, and even trial runs. The series of expansions being carried out are for silicone products with particularly high added value, and this expansion will contribute to expanding our global market share in silicones.
Our strength lies in our advanced technological capabilities. Instead of reproducing existing facilities, we always treat building facilities as an innovative process. The process of this current facility expansion will not only increase capacity to meet the needs of our customers, but also increase productivity by up to an order of magnitude and drastically reduce the utilities and waste we use, making it friendlier to both people and the environment.
All project members are working together to boost our silicones to the world's No. 1 market share.
Mr. YN
Isobe Plant Silicone Production
Dept. 2, Gunma Complex,
Shin-Etsu Chemical Co., Ltd.
16 Shin-Etsu Chemical Co., Ltd.
ANNUAL REPORT 2023 | 17 |
Sources of Our Competitiveness
Human Capital
Developing optimal staffing with T-shaped skill human resources in pursuit of a more efficient,
-based personnel evaluation system
smarter, and leaner way of working
The Shin-Etsu Group, believing that human resources | the development of human resources and promotion of |
provide the basis for all business activities, is working to | diversity" and "health and safety of employees and contrac- |
strengthen human capital with "respect for human rights, | tors" as key issues. |
Key Issues Respect for human rights, the development of human resources, and the promotion of diversity
The Group values the ability to set high goals without fear of failure, and employees' compensation reflects both performance and attitude, with due consideration of the business environment and the difficulty of the goals. We also conduct evaluation training for all managers in charge of performance review to ensure their evaluations are fair and reasonable. Transparency is increased by informing employees about the evaluation criteria. In addition, an interview system is implemented between evaluators and direct reports to facilitate successful communication. During these interviews, each staff member and their immediate supervisor use Communication Sheets to ensure mutual awareness of expectations and set half-year
Training costs and training hours per employee (Shin-Etsu Chemical)
(1,000 yen) | (hours) | |||||
40 | 8.36 | 10 | ||||
7.76 | ||||||
6.40 | ||||||
30.1 | 28.9 | |||||
20 | 5 | |||||
18.4 | ||||||
0 | 0 | |||||
2020 | 2021 | 2022 | (FY) | |||
Training costs (LHS) | Training hours (RHS) | |||||
Scope: Employees and seconded employees of Shin-Etsu Chemical
Respect for human rights
The Shin-Etsu Group complies with international codes of
vertical bar of the "T" represents deep expertise in a specific department and field, while the cross bar represents
goals. Furthermore, feedback on progress is given for further development of skills.
Excludes the auditing student system that was discontinued in FY2021 due to COVID-19.
conduct and always respects human rights at all its business sites around the world. The Shin-Etsu Group Human Rights Policy stipulates the prohibition of discrimination, the prohibition of damaging human dignity, the protection of privacy, the respect for basic labor rights, and the prohibition of child labor and forced labor. In order to thoroughly enforce these policies, the Human Rights Due Diligence* Subcommittee, established within the Sustainability Committee, establishes a system for investigating human rights risks and consulting and reporting on human rights and promotes human rights awareness and education in cooperation with the Shin-Etsu Chemical's Human Rights Enlightenment Promotion Committee. (See page 25.)
the ability to perform a wide range of work while pursuing a more efficient, smarter, and leaner way of working. In order to develop such human resources, the Group does not carry out one-size-fits-all personnel transfers, but rather places the right people in the right positions over the long term, emphasizing site-driven human resource development centered on on-the-job training (OJT).
This development of T-shaped human resources is what enables our human resources strategy, which places the highest priority on respect for the individual. By accumulating highly specialized knowledge, we have been able to maximize economies of scale during periods of strong demand and maximize the capabilities of existing personnel
Human resource development
Recognizing that employee growth leads to company growth, the Shin-Etsu Group supports employee growth through a variety of training programs, including training for each staff level, global communication training, an auditing student system, environmental education, safety education, and mental health education. For example, to ensure smooth business operations around the world, we offer global communication training to improve communication skills in foreign languages. Furthermore, as part of our digitalization efforts, in FY2021 we started digital literacy training for new and young employees, as well as hands-on
training in data analysis skills to solve practical problems and AI training for problem-solving learning, both targeted at mid-level employees.
In addition to this kind of systematic training, the Group also places great importance on individualized training that is not one-size-fits-all. On the operational front lines in par- ticular, we believe that true growth is achieved through the accumulation of daily experience. We therefore emphasize OJT, aiming to develop human resources who can demonstrate flexible creativity and initiative.
*Human rights due diligence: What companies should do to recognize, prevent and address adverse human rights-related impacts, including developing human rights policies, assessing the impact of corporate activities on human rights, and tracking and disclosing performance.
Developing optimal staffing with
T-shaped human resources
One of the major factors supporting the Group's profitability is the development of "T-shaped human resources." The
Operating income per employee (Shin-Etsu Group)
during periods of weak demand, enabling management to overcome difficult times. In fact, the growth rate of operating income in recent years has greatly exceeded the growth rate of the number of employees, and the productivity
per employee has also increased significantly. In addition, our system of allowing each individual to take on a variety of tasks as they gain experience is working to enhance employee competence and engagement.
Operating income per employee
Training system list
Training for | Specialized education | Environment and | Quality | Special | General | |||||||||||||
control | ||||||||||||||||||
dierent sta grades | safety education | education | education | |||||||||||||||
AI/MI education | education | |||||||||||||||||
General | Advanced | S sta group/ | ||||||||||||||||
management | ||||||||||||||||||
M sta group | Environment | |||||||||||||||||
manager | training | DX management | ||||||||||||||||
level | training | Specialized | al health and | |||||||||||||||
Patent training | safety | |||||||||||||||||
education in | education | |||||||||||||||||
environment | ||||||||||||||||||
Training for | ||||||||||||||||||
Hazardous | Course for | |||||||||||||||||
al control | ||||||||||||||||||
adaptation to | ||||||||||||||||||
and safety | materials | management |
(¥ million) | 38.8 million yen (FY2022) | (People) | |||||
40 | 40,000 | ||||||
Operating income per employee (LHS) | |||||||
30 | Number of employees (RHS) | 30,000 | |||||
20 | 20,000 | |||||||||
10 | 10,000 | |||||||||
0 | 0 | |||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | (FY) |
Section | Middle management training | internationalization | safety | development | ||||||||||||||
manager | English language | • Supervisor | education | training | Mental health | |||||||||||||
level | education | Industrial | (external training) | seminars | ||||||||||||||
training | Introduction | |||||||||||||||||
Job group | MI*1 | • ISO | Safety and | • Self-care | ||||||||||||||
• Meeting skills | training | Health Act. | ||||||||||||||||
education | ||||||||||||||||||
Line | Sta | course I/ II | AI management | Radiation | QC | |||||||||||||
• Line-care | ||||||||||||||||||
Junior | management | management | training | intermediate | ||||||||||||||
High- | ||||||||||||||||||
manager | training | training | change | • Presentation skills | course | course | ||||||||||||
pressure gas | • Human | |||||||||||||||||
level | course I/II | • Basic training | ||||||||||||||||
rights | ||||||||||||||||||
Mono-press | ||||||||||||||||||
training | awareness | |||||||||||||||||
• Chinese | • PBL*2 | ure, boilers, | ||||||||||||||||
Mid-career employees | conversation | etc. | training | |||||||||||||||
Classes | ||||||||||||||||||
Women employees | • Intercultural | |||||||||||||||||
Auditing | ||||||||||||||||||
Regular | Junior leader training | communication | New recruit education | QC basic | student | |||||||||||||
training | course | system | ||||||||||||||||
employees | ||||||||||||||||||
Third-year training | (1 year) | |||||||||||||||||
New employee induction/ | *1 Material Informatics | |||||||||||||||||
second-phase training | *2 Problem-based Learning |
18 | Shin-Etsu Chemical Co., Ltd. | ANNUAL REPORT 2023 | 19 |
Sources of Our Competitiveness
Human Capital
Promoting the active participation of diverse human resources
Key Issues Health and safety of employees and contractors
The Group is working to promote the active participation | the hiring of foreign nationals living in Japan. In April 2019 |
of women and create a workplace environment where | we raised our mandatory retirement age for employees |
employees of all walks of life can work to their full | from 60 to 65 so that more seasoned workers at our |
potential. So that we can expand our business globally, | production plants can pass on their skills and experience |
we are focused on local recruitment overseas as well as | to the next generation. |
Five-year targets and progress (starting in FY2021) in the action plan based on the Act on Promotion of Women's Participation and Advancement in the Workplace
Ratio of women at the time of hiring | Number of women in managerial positions, |
including junior manager level | |
Creating safe and secure workplaces
In aiming to prevent all serious and lost-time accidents, the Group conducts risk assessments to comprehensively identify risks that could lead to injury or illness and is working to create safe and comfortable workplaces by eliminating or minimizing risks.
Participants of safety education programs
(FY) | 2018 | 2019 | 2020 | 2021 | 2022 |
Shin-Etsu |
Lost-time injuries and changes in frequency rate
(People) | Lost-time injuries (LHS) | Japan | Overseas | ||||
Lost-time injury frequency rate* (RHS) | Japan | Overseas | |||||
100 | 2.0 |
70 | 1.5 | |
57 | ||
40 | 1.15 | 1.0 |
10 | 0.4 | |
5 | 0.2 |
Administrative | Engineering | |
FY2025 | positions 40% | positions 10% |
target | 40.0% 42.9% | |
6.3% | ||
4.5% |
FY2025
target
4x versus FY2014
2.84x 3.00x
Chemical | 11,774 | 19,411 | 32,527 | 39,348 | 59,343 |
Consolidated | 28,013 | 39,328 | 46,998 | 56,236 | 75,406 |
companies | |||||
0 | 0 | ||||||
2020 | 2021 | 2022 | (CY) |
*Rate of recordable injuries per million hours worked
Accident prevention initiatives
As a bottom-up initiative implemented at each worksite, the
Suggestions regarding close-call incidents or other concerns
8,000 | 7,898 |
April 2022 April 2023 | April 2022 April 2023 | 2022 | 2023 | (FY) |
Scope: Employees and seconded employees of Shin-Etsu Chemical
Group accepts suggestions from and listens to the concerns of workers who have experienced close-call incidents themselves and employs measures to address even the slightest of con-
7,000 | 7,131 |
6,000 |
Work-life balance
Childcare support system
Employees can take childcare leave up until their children turn
Nursing care support system
We have established a nursing care support system for employ-
cerns. At the same time, by sharing the information within and outside of the Group, we strive to roll out safety measures as well as preventive measures for similar incidents.
5,000 | 5,501 | ||
2020 | 2021 | 2022 | (FY) |
three. They can also choose to work shorter hours using our short-time work system as long
ees who care for their families and other important individuals as part of our efforts to create an
Please visit the following website page for the suggestions disclosed thus far.
https://www.shinetsu.co.jp/en/sustainability/esg_safety/management/
as their children are still attend-
ing elementary school. We also encourage employees to make use of our teleworking system. In FY2022, 151 female employees and 156 male employees utilized our childcare leave system.*
*The length of childcare leave differs depending on the laws of each country or region.
environment in which employ-
ees can balance their work duties with nursing care obligations. In FY2014 we started providing a "Health Management and Nursing Care Support" service and set up a consultation hotline through which employees can seek the advice of external experts. In FY2022, three employees (from all consolidated companies in Japan) utilized our nursing care leave system.
Physical and mental health of employees
We actively provide health guidance on lifestyle-related diseases, mental health measures, and hold events to improve physical fitness so that our employees can lively work. We've also prepared countermeasure manuals against COVID-19 and other important infectious diseases so we can prevent their spread. In addition, we've
set up health and safety committees at the head office and branch offices, as well as health and safety committees at each plant site. These committees get information and guidance from industrial physicians and are working to improve the work environment and promote health.
Employee message
As a manager, I work with the whole organization in mind
I work in Shintech's HR department in the Texas area, where my work includes improvements to organi- | |
zational capabilities, HR development, workplace development, pay and benefits, employee health and | |
safety, and employee risk management. | |
Shintech complies with regulations - federal, state and local - including equal employment opportu- | |
nity, discrimination and harassment related to race / religion / sex / national origin, etc. Our employee | |
handbook is one of our initial points of contact in our employer / employee relationship, supported | |
by HR policies in which we communicate our commitment to ensuring a fair and equitable work | Ms. SF |
environment. In addition, Shintech aligns our initiatives with Shin-Etsu's Sustainability Key Issues and | |
Management Objectives. | HR Manager |
The HR department aims to be a strategic business partner to the management team. Going forward, | |
Shintech Inc. | |
we will continue to analyze our position and implement various measures necessary for the development | |
of the Company. |
Employee message
The safety of all employees is our top priority
I have worked for the Shin-Etsu Group as the plant manager for the PVC plant in Pernis in the Netherlands. As a plant manager I am responsible for the operation of the plant. This also includes the health and safety of the people working on site. In the Pernis plant the safety of all employees is our top priority. Plant safety is addressed at all levels in the organization by using well defined procedures and working processes.
HR department reports monthly on the trends of our employee's health to the plant management team.We also conduct regular health checks on all our employees.
To further enhance our focus on working safely in the plant a new safety program was started in January 2023. Working together with an experienced safety consultant the whole organization is involved in this program. Collaboration between own employees and subcontractors is included in this program.
Ms. SS
PVC Plant Manager
Shin-Etsu PVC (Netherlands)
20 | Shin-Etsu Chemical Co., Ltd. | ANNUAL REPORT 2023 | 21 |
Sources of Our Competitiveness
Intellectual Capital
Promoting rapid, field-linked R&D and strategic IP management to protect our business
The Shin-Etsu Group considers R&D to be an important | need. We are also strategically managing the valuable |
"asset" as well as a "challenge" to pioneer the future, | intellectual property (IP) obtained through R&D in order to |
and we are promoting R&D to meet the needs of the | make effective use of it. |
times while asking ourselves what the future world will |
The "triangular link" system for rapid response to customer needs
Development of new process technology and transfer parts for micro-LED displays
To achieve mass production of micro-LED displays, which are the most promising candidates for next-generation displays, the key challenge is to improve the complexity and low yield of the microchip transfer process. In response, we have devel- oped, in collaboration with Dexerials Corporation, an innovative technology that can transfer singulated anisotropic conductive film (ACF) with a diameter of 80 μm or less onto the targeted location by laser equipment. Employing this technology, it becomes possible to transfer the singulated ACF only to the designated plate and mount the micro-LED chip on it, facilitating the repair process to remove and compensate for defective chips, which has been a major challenge in the past.
In addition, in collaboration with Group companies Shin-Etsu Engineering and Shin-Etsu Polymer, we developed new transfer parts and transfer equipment. By combining these, it is possible to provide optimal processes to customers. As a one-stop solution provider in the manufacture of micro LEDs, Shin-Etsu Chemical is working to promote and expand the market for micro-LED displays by proposing solutions to customers' problems.
The Shin-Etsu Group's R&D department rapidly develops products tailored to customer needs while keeping an eye on mass production after product development. This is made possible by our unique R&D system that integrates sales, development, and production in a triangular link, with an R&D center located on the production sites. We also promote R&D projects under the direct control of the President in order to meet customer needs and generate new solution ideas. In addition, we are focusing on recruiting and developing human resources who
are familiar with digital technology such as AI and are working to improve development efficiency and shorten development time by utilizing materials informatics.
As examples of R&D in existing businesses, we lead the PVC industry in the development of polymerization technology using our proprietary large-scale polymer- ization reactor and non-scale technology, and in silicon wafers, we are advancing crystal growth technology and solidifying our competitive advantage through R&D that is one step ahead of the competition.
Aggressive product development in new areas with growth potential
Excimer laser mass transfer equipment | Micro LED chips (34×58 μm) connected by |
anisotropic conductive film transferred to target | |
location by laser |
In terms of new business areas, we are focusing our R&D efforts on five major priority areas in growth markets where we can leverage our strengths: energy,
which possesses antibacterial/antivirus functions for use in building materials for housing and buildings.
Strategically protect IP and promote research with acquiring rights in mind
semiconductor-related materials, high-speed communications at 5G and beyond, healthcare, and materials that contribute to achieving SDGs and carbon neutrality.
In FY2022, we developed a new process technology to realize mass production of micro-LED displays and developed an encapsulant material for mini-LED displays in collaboration with Taiwan's Industrial Technology Research Institute (ITRI). In addition, for electric and hybrid vehicles, where voltages are becoming increasingly high, we developed a new silicone rubber for molding product, the KE-5641-U, which is an ideal sheathing material to improve the flexibility and reduce the weight of high-voltage cables, as well as the TC-BGI series of thermal interface silicone rubber sheets. We also developed the industry's first silicone film-forming emulsion for fiber-treatment applications. Furthermore, we developed a new coating material Sicle™ (pronounced "Cycle") that adds a water-resistance property to paper products such as cardboard and dramatically facilitates their recyclability, and Tersus™ RN, an inorganic thin-film coating liquid
High-voltage cables used in electric vehicles
Flexible mini-LED display using materials from Shin-Etsu Chemical
The Shin-Etsu Group protects its IP gained through R&D from infringement by third parties by securing intellectual property rights both in Japan and overseas. At the same time, we search patent publications related to existing and new businesses to avoid infringement of rights. We also strategically manage our intellectual assets by, for example, keeping information that should not be disclosed as confidential knowledge. At present, there are no cases where business operations are hindered by IP.
In addition, we encourage researchers to conduct research with patent rights and other IP rights in mind, and educate them so that they can prepare documents for rights acquisition. We also have a system in place to reward and recognize personnel who have made significant contributions to the Company in the form of patents and other inventions and ideas. As a result of these and other efforts, Clarivate, a global information services company, has recognized Shin-Etsu Chemical as a Clarivate Top 100 Global Innovator™ for 12 consecutive
years. The award recognizes companies and institutions that protect original invention ideas with IP rights and successfully commercialize them. We are one of only three companies in the chemical field to have received the award for 12 consecutive years.
From left: Mr. Takashi Kojima, Vice President of Clarivate Analytics (Japan) Co., Ltd., Mr. Matsui, Managing Corporate Officer of Shin-Etsu Chemical, and Mr. Kubota, General Manager, Patent Department
22 Shin-Etsu Chemical Co., Ltd.
ANNUAL REPORT 2023 | 23 |
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Shin-Etsu Chemical Co. Ltd. published this content on 26 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2023 23:43:21 UTC.
