OKYO, May 24, 2022 - (ACN Newswire) - Showa Denko (SDK) (TOKYO: 4004) proposed its "Project to Develop SiC Wafers Technology for Next-generation Green Power Semiconductors(1)" (hereinafter "the Project") to New Energy and Industrial Technology Development Organization (NEDO) as a candidate for "Projects to Develop Wafers Technology for Next-generation Power Semiconductors" which was set as a research and development target of "Next-generation Digital Infrastructure Construction(2)" in "Green Innovation Fund Projects" (hereinafter GI Fund Projects). And the Project has been selected for GI Fund Projects by NEDO.

In October 2020, the Japanese Government declared that it aims to achieve carbon neutrality by 2050. Aiming to significantly accelerate efforts toward structural changes in the energy and industrial sectors and undertake bold investment for innovation, which are necessary for achievement of the above national target, Ministry of Energy, Trade and Industry (METI) decided in October 2020 to develop a Green Innovation Fund at the level of 2 trillion yen as part of the NEDO. The plan of GI Fund Projects, which are based on the specific goals shared by public and private sectors, is to continuously support companies and other organizations, which show their commitment to challenge such ambitious goals as their business issues ranging from research and development (R&D) to demonstrations to social implementation of the outcomes.

SDK's business to manufacture SiC epitaxial wafers for power semiconductors (hereinafter SiC epi-wafers) has conducted business transactions with leading power semiconductor manufacturers inside and outside Japan, and has the global-top share in the SiC epi-wafers market(3). In the Project, SDK plans to make the most of its resources including intelligent property portfolio and development know-how, develop SiC epi-wafers with a diameter of 8 inches, and reduce density of deficiencies by one digit or more, thereby reducing production cost of next-generation power semiconductors. This time, NEDO highly appreciated SDK's aggressive proposal and its SiC epi-wafers business's good performance. As a result, NEDO selected SDK's proposal for GI Fund Projects. The Project's implementation period will be 9 years, from fiscal 2022 to fiscal 2030. In the Project, SDK will develop technology to accelerate growth rate of SiC bulk single crystal in cooperation with the National Institute of Advanced Industrial Science and Technology (AIST).

The Showa Denko Group aims to be a "Co-Creative Chemical Company" and contribute to the sustainable development of global society. Under this vision, SDK positions its operation to produce SiC epitaxial wafers, which contributes to efficient use of energy, as a next-generation business, and will allocate much of our business resources. The Group will continue contributing to the spread of SiC power semiconductors by maintaining "Best in Class" as its motto and continuing provision of high-performance and highly-reliable products.

*1. Next-generation green power semiconductors are power semiconductors used in xEVs, power equipment for renewable energies, power modules for servers, etc., made from next-generation materials including SiC.
*2. URL for Projects to Next-generation Digital Infrastructure Construction is https://tinyurl.com/green-innovation-nedo
*3. SDK has the global-top share in the market as an independent supplier of SiC epitaxial wafers.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

Media contact:
Showa Denko K.K., Public Relations Group, Brand Communication Department, Tel: 81-3-5470-3235