Formosa Sumco Pledges Not to Cash in on Quake Crisis

Taipei, March 16, 2011 (CENS)--Formosa Sumco Technology Corp. pledges it will make an all-out effort to supply silicon wafers without hiking prices to help its customers weather the supply shortage crisis caused by the 9.0-magnetitude earthquake and the tsunami it ravaging northeastern Japan.

The super quake and the ensuing tsunami have badly damaged several nuclear reactors at Fukushima Daiichi power plant, forcing the Tokyo Electric Power Co. (TEPO) to cut power supplies in the calamity-torn Fukushima prefecture and part of Tokyo. The resulting power rationing has compelled many manufacturing factories in these areas to shut down production.

Although Sumco of Japan, which co-owns Formosa Sumco with the Formosa Plastics Group, operates most of its factories in Kyushu, it still has some factories in northeastern Japan.

The Taiwan joint venture has output capacity of 300,000 200mm wafers and 180,000 300mm wafers a month. Its yield rate and cost efficiency even outperform Sumco's, wining it the mission to boost output capacity to cope with supply shortage.

In spite of flooding orders, Formosa Sumco has vowed that it will not gain from the crisis, and instead will do its best to supply the materials crucial to chip-making and solar-energy industries.

Supply shortage has also boosted prices of reclaimed wafers, pushing up the average price to US$90 per kilograms from US$40 quoted in 2008.