Hitachi Cable to Improve COF Profitability with w/w 25% Share

Hitachi Cable announced on Friday the firm acquires COF (chip on film) business unit from Casio Micronics, Casio Computer’s subsidiary, at 6 billion yen. The unit will be reorganized to Hitachi Cable’s total subsidiary and start operation on 1 June, 2008. By this acquisition, Hitachi Cable’s annual revenue for COF will more than double with global top-class market share at 25%.Casio Micronics will spin off COF business unit into a separate company in mid April. Hitachi Cable will acquire whole shares of the company on 1 June. Hitachi Cable’s consolidated and non-consolidated sales would increase by about 10 billion yen in fiscal 2008 starting April. Global market share is expected to become almost as same as Mitsui Mining & Smelting, the top supplier of COF.Hitachi Cable becomes to operate 3 COF productive sites, 2 of which are its existent plants in Kai City, Yamanashi, Japan and Hitachi City, Ibaraki, Japan and the other is Casio Micronics’ plant in Chuo City, Yamanashi. Hitachi Cable plans to shift some facilities to production of TAB (tape automated bonding) tapes for memory chips. The firm has examined to expand TAB output capacity for memory chip mounting, while COF capacity is expected to become surplus against the demand.Hitachi Cable aims to improve profitability for COF business by output expansion and to increase TAB production for memory chips with minimum lead time and capital expenditure. Profitability of COF business has become worse since fiscal 2006 due to significant price down.