Furukawa Denshi to Develop New Electronic Materials Line

Furukawa group’s electronics materials subsidiary, Furukawa Denshi tries to market new products for next growth. The president Yasuhei Konagaya said the major target of next mid-term business plan starting fiscal 2008 is to develop new products while the firm clears the profit target for metallic arsenic and crystal materials under current mid-term plan to fiscal 2007. The firm tries to develop new core items including gallium nitride, scintillation counter crystal and thermionic element. Mr. Konagaya said the major item of metallic arsenic output is 90% level of annual 90 tonnes plan for fiscal 2007 due to lower export. He said the firm got 15% price hike from domestic users while he tries to increase the price more cautiously when the offshore rival tries to expand the market share in Japan from current 10%. Mr. Konagaya said the metallic arsenic sales could increase to more than 7 tonnes in September after the sales reached near 7 tonnes in August compared with far less than 7 tonnes in June. The firm prepares for potential higher demand by keeping 10 tonnes or 1.3 months inventory. Mr. Konagaya said the firm will depend on import from 2 makers in China for the material of arsenious acid. He said the firm already checked the quality for potential third source in China while the firm is reluctant to import from Europe due to higher freight. Mr. Konagaya said the firm confirmed the quality of gallium nitride enough to ship as substrate for light emitting diode. However, the quality is still has room to improve as laser diode. Mr. Konagaya said the firm completes the production shift of line filter core and coil to offshore sites in the year. The firm prepares to make the core in Taiwan and make coil in China after the firm confirms the quality level.