ACI in JV
Jeff Dorsch -- EDN, May 10, 1999
Norwalk, Conn.--Addressing the growing base of semiconductor fabrication facilities in Taiwan, Arch Chemicals Inc. signed a letter of intent with Lee Chang Yung Chemical (LCY) of Taiwan to form a 50/50 joint venture to manufacture, distribute and market process chemicals and thin-film systems to Taiwanese semiconductor manufacturers.
If the joint venture is successful, the partners may extend its sales activities to China and Southeast Asia. By agreement of the parties, the joint venture will not sell photoresists and related ancillary products that are already being sold in Asia by Fujifilm Olin, a joint venture between Arch Chemicals and Fuji Photo Film Co. Ltd. (Arch Chemicals was spun off from Olin Corp. in February.) Fujifilm Olin has manufacturing facilities in Japan and Taiwan.
LCY manufactures solvents that are used in the semiconductor industry. Their basic manufacturing position, and existing manufacturing infrastructure in Taiwan, will provide the joint venture with distinct competitive advantages, the joint-venture partners asserted. Arch's Semiconductor Chemicals and Services business is a supplier of process chemicals and thin-film systems in North America and Europe, and is committed to growing its presence in Asia as well, Arch Chemicals stated.
"Through our future joint venture with LCY, a well-respected chemical company in Taiwan, we can accelerate our growth in Asia and provide our customers there with a full range of semiconductor chemicals and services," said Michael E. Campbell, Arch Chemicals chairman and chief executive officer, in a statement. "The timing of our joint venture is excellent, for there are signs that key Asian economies and the semiconductor sector are poised for a return to strong growth."
"The field of microelectronic chemicals and materials will be LCY's emphasis and future growth areas," said Bowei Lee, the chairman of LCY. "The current cooperation with Arch Chemicals perfectly matches our strategy and business model."
This joint venture is just the latest in a series of collaborations formed in the semiconductor materials business. Arch Chemicals in April said it would work with Air Liquide Electronics on jointly serving customers around the world.
Also in April, the Danbury, Conn.-based Praxair Inc. formed a global alliance with Merck KGaA Electronic Chemicals to jointly provide high-purity process gases and chemicals, related equipment and site services.
Praxair Semiconductor Materials is supported by a network of gas production and warehousing facilities in Asia, Europe and the United States, supplying more than 40 specialized gases in grades up to ultra-high-purity.
