Business Activity
Leveraging our core technologies in four business fields to manufacture materials and products that underpin industries and livelihoods
Sources of | Business Activity | サステナビリティ | Value Created | Vision | |||||
Sustainability | |||||||||
Our Competitiveness | |||||||||
Infrastructure | Electronics |
Materials | Materials |
Core Technologies
Functional | Processing |
& Specialized | |
Materials | |
Services | |
Management Foundation
PVC is indispensable to our lives mainly in the areas | In addition to our world-leading share in silicon wafers, |
of infrastructure, housing, and agriculture. As the | we provide various materials that are essential for |
largest manufacturer of PVC, we provide a stable | semiconductor manufacturing. We contribute to the dig- |
supply to customers around the world. | ital transformation and green transformation of industry. |
Infrastructure | Electronics |
Materials | Materials |
Core Technologies
Single-crystal growing,
Organic synthesis, Powdering/Sintering,
Electrolysis, CVD & PVD,
Polymerization,
Plastic & Film processing
Functional | Processing & |
Specialized | |
Materials | |
Services | |
Along with more than 5,000 different types of sili- | Meeting the diverse needs of customers by |
cones that support people's lives and industries, we | leveraging the advanced technological capa- |
provide a stable supply of high value-added prod- | bilities developed by the Shin-Etsu Group. |
ucts. We also help alleviate environmental impacts | |
and food shortages. |
ANNUAL REPORT 2023 | 31 |
Business Activity
Technologies, Materials and Products of the Shin-Etsu Group
Business Overview
The Shin-Etsu Group makes a wide array of products for use in a broad range of industrial fields by drawing on the production technologies accumulated in the process of continuously diversifying and improving its product offerings. By reciprocally maintaining close relationships, our business mix extends across many different fields and we have built a robust business structure impervious to economic conditions.
Oxide single | Products | Cellulose | |
crystals | |||
derivatives | |||
(Lithium | |||
Synthetic | |||
Compound | tantalate) | ||
semiconductors | pheromones | ||
Aroma |
Infrastructure Materials
As for PVC, the signs of a global economic recession appeared in the market but bottomed out at the end of 2022. On the other hand, the caustic soda market remained firm but began to weaken after the turn of the year. Under these circumstances, we worked to achieve full production and full sales based on precise demand forecasts in the global market and to conduct detailed price negotiations reflecting market fluctuations.
Net Sales
(¥ billion) | |||
1,500.0 | |||
1,308.0 | |||
1,000.0 | 857.1 | ||
500.0 | 485.8 | ||
0 | |||
3/2021 | 3/2022 | 3/2023 |
Operating Income
(¥ billion) | ||
600.0 | 541.3 | |
400.0 | ||
317.7 | ||
200.0 | ||
99.6 | ||
0 | ||
3/2021 | 3/2022 | 3/2023 |
Semiconductor | Minor | Materials | Pulp | chemicals | |
silicon | |||||
metals | |||||
Gallium | Acetylene | Low | |||
Rare earths | Silane | Organic | dielectric | ||
& Poly | materials | ||||
acid | |||||
silicon | Technologies | ||||
derivatives | |||||
Single-crystal | Organic | Silicones/ | LED/ | ||
growing | synthesis | Semiconductor | |||
Rare earth | Epoxy | ||||
technology | technology | encapsulating | |||
magnets | |||||
materials | |||||
Rare | Silicon | ||||
metal | |||||
earths | |||||
Silicon metal | Powdering/ | The Shin-Etsu | Electrolysis | Silanes | |
Sintering | Phenol | ||||
Silica | Group | technology | derivatives | ||
technology | |||||
Electronics Materials
The semiconductor market had entered an adjustment phase since the autumn of last year, and a similar situation remained at the end of the year, but the semiconductor materials as a whole were supported by the performance in the first half of the year. Rare earth magnets were also affected by the semiconductor shortages in customer production and the adjustments in data center investment, but the shipments to other markets made up for it.
Net Sales
(¥ billion) | |||
900.0 | 875.6 | ||
708.9 | |||
600.0 | 595.6 | ||
300.0 | |||
0 | |||
3/2021 | 3/2022 | 3/2023 |
Operating Income
(¥ billion) | |||
400.0 | |||
300.0 | 301.4 | ||
244.7 | |||
200.0 | 206.0 | ||
100.0 | |||
0 | |||
3/2021 | 3/2022 | 3/2023 |
LIB anode | Photoresists | ||||||
Industrial | |||||||
material | CVD*1 | ||||||
Polymerization | salt | ||||||
& | |||||||
technology | |||||||
Boron | PVD*2 | ||||||
Plastic & Film | Chlorides, | ||||||
Pyrolytic | Fluorine | ||||||
processing | Caustic soda | ||||||
boron nitride | compound | ||||||
Silane | technology | ||||||
(PBN) | |||||||
Silane | Liquid | ||||||
Synthetic | Molybdenum | ||||||
Chlorine & | fluoroelastomers | ||||||
Silicon | |||||||
quartz/ | |||||||
Fluorine | Vinyl | Ethylene | |||||
Quartz cloth | PVC/ | ||||||
polymers | acetate | ||||||
Silicones |
Photomask | Silicones | ||
blanks | Polyvinyl | ||
Pellicles | PVC/Silicones | Vinyl | chloride |
(PVC) resin | |||
acetate | |||
processed | |||
resin | |||
goods |
Functional Materials
In silicone products, although some product lines were affected by inventory adjustments and declining market prices in the second half of the fiscal year, we worked to maintain profitability by increasing the proportion of high-performance products such as automotive, personal care etc., and by promoting the development and launch of products with reduced environmental impact. Shipments of cellulose products, particularly high-value-added pharmaceuticals, were firm.
Net Sales
(¥ billion) | ||
600.0 | ||
493.3 | ||
400.0 | 395.6 | |
314.2 | ||
200.0 | ||
0 | ||
3/2021 | 3/2022 | 3/2023 |
Operating Income
(¥ billion) | ||
150.0 | ||
130.6 | ||
100.0 | 94.7 | |
70.7 | ||
50.0 | ||
0 | ||
3/2021 | 3/2022 | 3/2023 |
Business Segment
Infrastructure Materials | Functional Materials | |||
Electronics Materials | Processing & Specialized Services | |||
*1 Chemical vapor deposition (CVD)
A method for depositing thin film by chemical reaction on the substrate of precursors produced by applying energy such as heat, plasma, or light to raw material gases.
*2 Physical vapor deposition (PVD)
A method for adhering and depositing on the substrate surface by evaporating and scattering solid raw materials as atomic/molecular particles by heating, sputtering, ion beam irradiation, etc.
Processing & Specialized Services
The sales of semiconductor wafer-related containers were strong mainly for 300mm wafer use, and the sales of input devices for automobiles increased. The sales of PVC-related products such as PVC wrapping films for food packaging and construction materials increased due to the permeation of revised prices.
Net Sales
(¥ billion) | |||
150.0 | |||
131.6 | |||
101.0 | 112.6 | ||
100.0 | |||
50.0 | |||
0 | |||
3/2021 | 3/2022 | 3/2023 |
Operating Income
(¥ billion) | ||
30.0 | ||
26.3 | ||
20.0 | 20.9 | |
16.3 | ||
10.0 | ||
0 | ||
3/2021 | 3/2022 | 3/2023 |
32 | Shin-Etsu Chemical Co., Ltd. | ANNUAL REPORT 2023 | 33 |
Business Activity
Infrastructure Materials
PVC is indispensable to our lives mainly in the areas of infrastructure, housing, and agriculture. As the largest manufacturer of PVC, we provide a stable supply to customers around the world.
Infrastructure Materials
Major Products and Applications
PVC
PVC is extremely durable and easy to work with. It can also be easily recycled. For these reasons, it is used widely in items related to our daily existence. For example, PVC pipes in water supply and sewerage systems help extend the useful life of such infrastructure because they do not need to be replaced for at least 50 years.
PVC Pipes | PVC-Framed Windows | Plastic Greenhouses for Agriculture | ||
Using Our Products to Solve Societal Issues (PVC)
Protecting the planet by reducing greenhouse gas emissions and expanding social infrastructure to cope with population growth
- Salt accounts for roughly 60% of the raw materials used to make PVC and is a commodity that still exists in abundance throughout the world. As the production of PVC does not rely heavily on petroleum resources, it makes effective use of the planet's limited resources. As such, CO2 emissions during the PVC production process are lower than other plastics.
- The main applications of PVC are pipes and construction materials. Products made with PVC help conserve resources because they have a longer service life compared to other plastic products (PVC pipes last around 50 years*).
- PVC-framedwindows boast superior thermal insulation and therefore help lower energy consumption and curb CO2 emissions.
- PVC construction materials are much lighter than materials made from steel, for example, which leads to reductions in the amount of fuel required to transport them and move them into place during construction.
- In Japan, the material recycling rate for PVC is about 33%*, higher than that for other types of plastic.
Caustic Soda
Caustic soda is a base chemical produced from the electrolysis of salt and is indispensable to various industries for the purpose of alumina extraction, as a raw material in lithium-ion batteries and super-absorbent polymers, and for water treatment.
Alumina | Cathode Materials for Lithium-Ion Batteries |
Polyvinyl Alcohol
(POVAL)
Polyvinyl alcohol (POVAL) has many applications, including adhesives, various types of film, textile treating agents, interlayers of laminated glass, and pharmaceutical additives.
Car Windshields
*Source: Ministry of Land, Infrastructure, Transport and Tourism, Vinyl Environmental Council
Topic | |
Shintech: Augmenting PVC production capacity | Approximately |
Competitive Advantages (PVC)
- Efficient production with the world's largest production capacity
- Stable quality and stable supply to customers
- Favorable raw material situation and stable energy procurement in the U.S.
- Integrated production system starting from raw materials (ethylene)
- Three global bases, and production at multiple sites in three locations in the U.S.
- Global sales network
Integrated production system starting from raw materials (Shintech)
In-House production External procurement
Ethylene | Vinyl chloride | |
monomers | ||
Natural | ||
PVC | ||
gas | ||
Vinyl chloride | ||
Ethylene | ||
monomers | ||
Chlorine | ||
Salt | Worldwide Sales | |
Caustic soda | ||
Shintech, one of the Group's subsidiaries in the | Shintech PVC production capacity | 35x | 3.62 millions of tons | |||||||||||||||||||||||||||||||||
U.S. and the world's largest manufacturer of PVC, | (Millions of tons) | (plan) | ||||||||||||||||||||||||||||||||||
boosted its annual production capacity to 3.24 | ||||||||||||||||||||||||||||||||||||
4 | 3.24 millions of tons | |||||||||||||||||||||||||||||||||||
million tons by bringing online a new plant with an | ||||||||||||||||||||||||||||||||||||
annual production capacity of 290,000 tons at the | 2.95 millions of tons | |||||||||||||||||||||||||||||||||||
end of 2021 to meet brisk demand in mainly North | 3 | |||||||||||||||||||||||||||||||||||
Largest production | ||||||||||||||||||||||||||||||||||||
America and emerging countries. Construction is | ||||||||||||||||||||||||||||||||||||
capacity in the world | ||||||||||||||||||||||||||||||||||||
underway on a PVC plant expansion that will have | ||||||||||||||||||||||||||||||||||||
an annual production capacity of 380,000 tons | 2 | Largest production | ||||||||||||||||||||||||||||||||||
after completion, thereby increasing Shintech's | capacity in the U.S. | |||||||||||||||||||||||||||||||||||
total production capacity to 3.62 million tons. | 1 | |||||||||||||||||||||||||||||||||||
Start of operation: | ||||||||||||||||||||||||||||||||||||
In order to stably supply PVC to customers | ||||||||||||||||||||||||||||||||||||
100,000 tons | ||||||||||||||||||||||||||||||||||||
worldwide, in 2020 the company established an | ||||||||||||||||||||||||||||||||||||
integrated production system starting from raw | 0 | |||||||||||||||||||||||||||||||||||
materials, chiefly by producing in-house some of | ||||||||||||||||||||||||||||||||||||
1974 | 1978 | 1981 | 1984 | 19881990 19921994 | 1997 2000 2001 | 2008 2010 | 2015 | 2021 2023 | ||||||||||||||||||||||||||||
the ethylene required for PVC manufacturing. | ||||||||||||||||||||||||||||||||||||
(FY) |
34 | Shin-Etsu Chemical Co., Ltd. | ANNUAL REPORT 2023 | 35 |
Business Activity
Electronics Materials
Shin-Etsu Group Products Associated with the Overall Semiconductor Manufacturing Process
Electronics Materials
In addition to our world-leading share in silicon wafers, we provide various materials that are essential for semiconductor manufacturing. We contribute to the digital transformation and green transformation of industry.
Using Our Products to Solve Societal Issues
Development of AI, 5G, automated driving, IoT
To achieve fully automated driving and telemedicine, 5G-compatible communication devices and infrastructure are necessary, and many high-performance,energy-efficient semiconductors are used in these devices. Silicon wafers, the substrate material for semiconductors, and various other semiconductor materials provided by the Shin-Etsu Group not only help to enhance performance and reduce the size and weight of electronic devices, but also contribute to improving electric power conservation and efficiency, thereby supporting the expansion and continuous growth of semiconductors on multiple fronts.
Providing technologies and materials essential for carbon neutrality
Rare earth magnets, which have about 10 times more magnetic force than conventional ferrite magnets, help enhance motor
Semiconductor manufacturing process
Processes where our products are used
Raw materials
Polysilicon is produced from silicon metal (Si), made by removing the oxygen from quartzite (SiO2), as the base material.
Single crystal silicon
Single crystal silicon is produced in a cylindrical format by melting polysilicon.
Cutting and polishing
Single crystal silicon is cut into thin slices and polished to a mirror finish.
Silicon wafers
The processes shown above are used to create silicon wafers.
Wafers are shipped to device manufacturers
CVD, Oxidation
Wafers are put into a high-temperature furnace to produce a thin oxidation film on their surface.
Products supplied by the Shin-Etsu Group
Silicon metal
Quartz crucibles
Silicon carbide fine-ground powder
Silicon wafers
Wafer cases
efficiency and power consumption, contributing to improved energy efficiency and reduced greenhouse gas emissions.
Competitive Advantages
Pattern formation
Special photosensitive materials (photoresists) are applied, circuit patterns are baked in and developed, and the surface is processed. ->P38
Dicing
Individual wafers are cut away and made into integrated circuit chips.
Assembly
Using wire, the chips are connected electrically to a circuit board.
Resin sealing
Quartz glass for use in the semiconductor manufacturing process
Synthetic quartz photomask substrates
Photomask blanks
Rare earths
(yttrium oxide)
Photoresist
Pellicles (dust protection covers for photomask substrates)
Overall business
Semiconductor-related
products
Rare earth magnets
- Stable quality and stable supply to customers
- Responding to increasingly sophisticated technological requirements
- Synergies gained from an extensive lineup of semiconductor-related products (competitive edge in development and proposal capabilities)
- Stable supply supported by operating multiple production bases and an established integrated production system starting from raw materials
- Development of products that substantially reduce the use of heavy rare earth materials and promotion of recycling
The chip is coated in resin to protect it from heat and shocks.
Semiconductor devices
The completed semiconductor device is now embedded in the final product.
Final product
Encapsulant materials
Liquid encapsulation materials
Thermal interface materials
36 | Shin-Etsu Chemical Co., Ltd. | ANNUAL REPORT 2023 | 37 |
Business Activity
Major Products and Applications
Silicon Wafers
Silicon wafers are the substrate material for semiconductors and are used in all kinds of devices, from smartphones, home appli- ances, automobiles and other devices that we see in our daily lives, to cutting-edge fields such as AI and IoT. Shin-Etsu Group's silicon wafers, including our quality control and evaluation analy- sis, have earned high praise from customers around the world, along with our high-precision single crystal technologies, high-end processing technologies, and high-quality epitaxial growth technologies for advanced logic and imaging devices.
Electronics Materials
Rare Earth Magnets
Rare earth magnets are used in products such as automobile motors, power generators, industrial robots, compressor motors for air conditioners, motors for hard disk drives utilized in data centers and other facilities and wind power generator motors. We are engaged in the manufacture of these magnets from the separation and refinement of rare earths as raw materials to the magnet product. Furthermore, it is reliably supplying high-quality rare earth magnets
with advanced features by means of the development | Electric vehicle | Data center |
of its own grain boundary diffusion method, which | ||
reduces the amount of heavy rare earth used, while | ||
maintaining high performance. |
Rare Earths
Encapsulant Materials for Semiconductor Devices
Photoresists
A circuit pattern is formed by applying photoresists to the surface of a silicon wafer and then passing light through a photomask to expose the surface in that pattern. In addition
Semiconductor lithography
process (pattern formation) Products oered by
the Group
Light source | Photomask |
Blanks | |
Known as the "vitamins of the high-tech industry," rare earth elements are used in a variety of applications depending on their individual characteristics. They are used in the light-emitting devices installed in diagnostic imaging systems such as CT scanners and contribute to improved testing safety at medical sites.
These materials are notable for their superior heat and crack resistance and are used in general semiconductors, automotive power modules and devices for home appliances. Furthermore, the encapsulant materials we have developed for large- scale packaging improve the rate at which materials are effectively utilized, contribut-
ing to the reduction of device manufacturing costs.
to photoresists for excimer lasers (KrF, ArF) and EUV, we also supply spin-onmiddle/under-layer hardmasks used in the nanofabrication process.
Photomask Blanks
Photomask blanks are the material that forms a thin metallic film on the surface of a synthetic quartz substrate and serve as patterning templates when drawing circuits on silicon wafers. In addition to providing
photomask blanks for use with krypton fluoride (KrF) and argon fluoride (ArF) lasers, we have established state-of-the- art photomask blank mass production technologies, including multilayer film structures and permeable membrane structures with excellent light resistance properties.
Photoresists
Light-shielding
film
Synthetic quartz substrates
Pellicles | Electron beam |
lithography |
Condenser lens
Development
Photoresists
Etching | |
Silicon wafer | Remove |
photoresist | |
Photomask |
LED Packaging Materials
These materials offer high transparency, heat resis- tance, and other excellent properties, and help prevent the degradation of LED brightness over a long period of time.
Topic | |||
Strengthening the supply chain for rare earth magnets | |||
in anticipation of further increase in demand | Separation and | Recycling of rare earth magnets | |
refining | process | ||
The goal of a carbon-neutral society has created strong demand | Rare earth oxides | ||
for rare earth magnets, and further growth in the global market | Our plants | Rare earth metals | |
for rare earth magnets is expected due to the spread of electric | |||
(Japan and Vietnam) | |||
vehicles, the increase in renewable energy such as wind power |
Synthetic Quartz
Synthetic quartz, the key material of optical fiber, provides superior light transmission. In an ordinary glass plate, light attenuates in about two meters. However, synthetic quartz allows light to reach a distance of about 100 km. The Group was the first in the world to mass produce synthetic quartz, which is higher in purity than natural quartz. Due to these attributes, it is used as an optical fiber, a photomask substrate for semiconductor lithography and a stepper lens for semiconductor lithography. In addition, it is used as a large-scale photomask substrate for flat panel display (FPD) lithography, including liquid crystal and OLED displays.
Large-size photomask | Preform for optical fiber |
substrate for FPD |
Optical fiber made of preform
generation, and the growing demand for energy-saving home | Magnetic alloys | |||||||||||||
appliances and industrial equipment associated with factory | ||||||||||||||
Recovered magnets | Magnet | |||||||||||||
automation. We are strengthening our supply chain to meet | Sintered block | |||||||||||||
powder, scraps | ||||||||||||||
this demand. | ||||||||||||||
In recent years, it has also become increasingly important | Products that use them | |||||||||||||
Finished magnet | ||||||||||||||
from the perspective of economic security to secure a stable | ||||||||||||||
product | ||||||||||||||
supply of rare earths as raw materials. The Shin-Etsu Group | ||||||||||||||
has technologies for separating and refining rare earths, and | ||||||||||||||
in addition to recycling magnet powder from the processing of | ||||||||||||||
rare earth magnets, we are also working to utilize rare earth | ||||||||||||||
magnets recovered from end-of-life products, also known as | ||||||||||||||
"urban mining." | ||||||||||||||
38 | Shin-Etsu Chemical Co., Ltd. | ANNUAL REPORT 2023 | 39 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Shin-Etsu Chemical Co. Ltd. published this content on 26 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2023 23:43:20 UTC.