DuPont Electronic Technologies and Samsung Cheil Industries, Inc. Announce Joint Venture Agreement for Flexible Circuit Materials
|Contact: Ellen Pressley
Ellen G. Pressley@usa.dupont.com
DuPont Electronic Technologies and Cheil Industries, Inc., part of the Samsung Group, have signed a 50/50 joint venture agreement, pending local and government approvals, to establish SD Flex Company, LLC. SD Flex Company will manufacture DuPont™ Pyralux® adhesiveless, flexible copper clad laminate (FCCL), the material instrumental in enabling advanced functionality and performance in displays, cell phones, personal digital assistants (PDAs) and other electronic devices.
The manufacturing facility for SD Flex Company will be constructed at Cheil's existing site in Gumi, Korea. The first manufacturing line within the new facility is expected to be operational in the third quarter of 2005 with an initial capacity of 100,000 square meters per month, and will be expanded to keep pace with market demand. SD Flex Company will focus on serving primarily the Korean market.
"We are very pleased to be working with Cheil to meet the industry's growing demand for adhesiveless flexible printed circuits," said Craig G. Naylor, group vice president – DuPont Electronic & Communication Technologies. "Cheil brings an excellent manufacturing capability and understanding of customer needs in the Korean marketplace. This complements and strengthens the existing position for DuPont in adhesiveless flexible materials."
"Cheil Industries' Electronic Chemical Material Division plans to play a pivotal role in today's multimedia society," stated Cheil's president & CEO, Je Jin-hoon. "This joint venture is a strong fit with our existing electronic materials portfolio and introduces the potential for more high-tech collaborative efforts between our two companies in the future."
SD Flex Company will focus on advanced cast-on copper clad laminate manufacturing technology licensed from DuPont Wirex. This technology reduces the layers in a flexible circuit from three to two, by eliminating an adhesive layer that prohibits maximum circuit density and flexibility and is often a cause of vulnerability to circuit failure. Two-layer cast-on copper technology enables more reliable, lighter and thinner devices and allows for extremely dense circuitry to carry more information faster. The global market size of adhesiveless FCCL was estimated to be over $300 million in 2003. Moreover, the annual growth rate is estimated at 35-40 percent, fueled primarily by demand for cell phones and displays.
Cheil Industries Inc. was established in 1954 as a founding member of the Samsung Group, and diversified into the electronic chemical materials business in 1996, when it entered the epoxy molding compounds manufacturing business. As a result of continuous and successful R&D endeavors, Cheil Inc.'s electronic chemical materials business has established a strong market presence in Asia by offering a broad spectrum of electronic chemicals and materials to major electronic industries, including semiconductor, LCD, PDP, OLED and electronic components. Please visit http:\\www.starex.co.kr for more information on Cheil's electronic chemical materials business.
DuPont Electronic Technologies is a leading supplier of electronic materials, including materials for the fabrication and packaging of semiconductors, materials for rigid and flexible circuits, and materials for advanced displays. For further information, please visit electronics.dupont.com. As part of DuPont Electronic Technologies, the Flexible Circuit Materials group develops, manufactures and markets flexible, solderable, metal clad laminates, coverlays, and bonding adhesives for the fabrication of thin, solderable, high-density electrical interconnects. For more information on DuPont Flexible Circuit Materials, go to pyralux.dupont.com .
DuPont is a science company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.
Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products.