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Decision for Further Expansion of Kuwabata Plant in Order to Enhance Production System of Precision Processing Tools

DISCO Corporation (Head Office: Ota-ku, Tokyo; President: Kazuma Sekiya) has decided to invest approximately JPY 14 billion to build a D-Zone as an extension in addition to C-Zone, which is currently under construction in A-Building of Kuwabata Plant (Kure City, Hiroshima), where precision processing equipment and precision processing tools are being manufactured.

Purpose of D-Zone Extension

<Production system enhancements to meet the growing demand for precision processing tools>
With the development of the IoT and self-driving technology as a backdrop, the number of data centers and sensors is increasing. Due to advancements such as this, the utilization of semiconductors and electronic components is expected to continue to grow in the future, also causing demand for precision processing equipment*1 and precision processing tools*2 to continue to grow.

In such a market environment, DISCO has already decided to construct the Nagano Works Chino Plant and expand the production line of manual dicing saws at Chino Plant (announced on July 31, 2017) for the enhancement of the precision processing equipment manufacturing system. Despite that C-Zone in A-Building of Kuwabata Plant is currently being extended (announced on April 28, 2016), DISCO has decided that the further enhancement of the manufacturing system is necessary to meet the expected increase in demand, and will add the D-Zone. Furthermore, DISCO aims to reduce total construction costs by making the extensions below in continuation from C-Zone.

*1Precision processing equipment: Machines for cutting, grinding, or polishing silicon wafers.
*2Precision processing tools: Tools mounted in precision processing equipment for cutting or grinding, and frequently replaced consumables.

Diagram of Kuwabata Plant A after Expansion
Overview and Construction Schedule
Name D-Zone, A-Building, Kuwabata Plant
Building structure Seismically isolated structure
Total floor space Approx. 63,200m2
ReferenceA-Zone: Approx. 62,800m2
B-Zone: Approx. 65,700m2
C-Zone: Approx. 65,700m2(Completion of construction: December 2018)
Note: The size of the total floor space will be double compared to the current floor space after completion of C-Zone and D-zone.
Total amount invested Approx. JPY 14 billion
Construction period September 2019 (start of construction) – End of May 2021 (completion of construction)
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