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Nitto Denko Expanding Touch Screen–use Transparent Conductive Films Business
Introduction of New Production Unit Decided
4.6.2007
Japan’s leading diversified materials company Nitto Denko Corporation (Nitto Denko) has decided to install at its Onomichi Plant in western Japan a new production unit for its product ELECRYSTA, a transparent conductive film for touch screen application, with full-scale production scheduled to start in April 2008, the company announced today.
The latest move is designed to boost Nitto Denko’s ELECRYSTA production capacity by approximately three times, toward expanding the company’s ELECRYSTA business in the face of the growing market demand for such film. At the same time, the company aims to open up new applications and markets for the film by enhancing its compatibility with next-generation high-performance applications.
Background
Touch screens used for making inputs on an electronic screen through direct touch using fingers and pens, have already made inroads into bank cash dispensers, train station ticket machines, copying machines, computer game consoles and car navigation screens, and more recently have found application in cell phones.
Since 1991, Nitto Denko has engaged in the manufacture and sale of its transparent conductive film ELECRYSTA as a film-form electrode in resistive touch displays mainly used in the mobile devices such as game consoles.
ELECRYSTA is characterized by its substrate consisting of dual PET (polyethylene terephthalate) film layers and by the transparent electrode layer containing ITO, an indium tin oxide compound. As compared to similar products, ELECRYSTA is superior in basic performance characteristics such as improved input touch durability, low-load input sensitivity and larger effective surface area. As a result, ELECTRYSTA has been acknowledged and supported by a large number of customers as an important electro- optical part serving as a decisive factor behind the superior performance characteristics of touch screens. ELECRYSTA now occupies more than 70% of the mobile device-use touch screens market.
Construction of ELECRYSTA-based Touch Screen
About the Investment This Time
Owing much to the expanding sales volume of mobile devices equipped with touch screens, such as portable game consoles, personal navigation devices (PNDs) and smart phones (cell phones with multifunctional applications), the touch screens market has been showing steady growth in the past several years, at 10 -- 20% per year. Moreover, a bigger market growth at some 35% per year is being expected for 2006 and onward.
It is with such a background that Nitto Denko has decided to install a new ELECRYSTA production unit with the aim of boosting the touch screen-use transparent conductive film business. The objectives and the outline of the project are as follows:
(Objectives of the Investment)
1. Keep Abreast of the Expanding Market
Expanding the ELECRYSTA production capacity threefold would allow Nitto Denko to meet the growing market needs and enhance its superior market position relative to the competitors.
2. Pursue Further Differentiation
Pursue further differentiation versus the competitors by improving the functionality level of the product, such as durability, transparency and reliability.
3. Expand into New Applications and New Markets
Nitto Denko intends to actively enter into the smart phone market which is expected to undergo rapid expansion from now on.
(Outline of the Project)
| 1. | Nature of the Installed Machinery & Equipment: |
Sputtering and other equipment |
| 2. | Investment Amount: | ca. ¥1.8 billion |
| 3. | Installation Site: | Nitto Denko’s Onomichi Plant |
| 4. | On-stream Schedule: | April 2008 |
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