Hitachi Cable to Double TAB Sales by F2011

Hitachi Cable aims to almost double the consolidated annual sales for TAB (tape automated bonding) tape to 50 billion yen in fiscal 2011 ending March 2012 from estimated 23 billion yen in F2007. In F2011, the firm aims sales at approximately 20 billion yen for COF (chip on film) tape applied to liquid crystal displays (LCD) and approximately 25 billion yen for TAB tape applied to memories. The firm also tries to regain profits from COF tape business in F2009, though posting operating loss in F2007 due to oversupply and sharp price down in the market.Hitachi Cable’s TAB tape sale value was 23 billion yen in F2007, 35% of which was COF tape for LCD, 35% was TAB tape for memory package interposer and the rest was TAB tape for other applications. In F2011 the sales ratio would become 50% for TAB tape applied to memory package and 40% for COF.The firm plans to expand output capacity of TAB tape for μBGA(R) package, one of memory packaging method using solder balls, by 5-7 times toward F2011 to follow the demand growth in memory market. As to COF tape, the firm expects the sale volume growth at 5-7% per year toward F2011 while the sale value growth would become rather slow in and after F2008 impacted by sharp price down of COF tape.Hitachi Cable will integrate COF tape production into Kofu area, Yamanashi, Japan within a year. At the same time, in Kofu area, some of COF production lines will be shifted to μBGA production. The firm will reorganize TAB tape productions; TAB tape for memory package and other applications at Densen plant in Ibaraki, Japan, and COF tape and TAB tape for memory package in Kofu area.