SMM has decided to conduct an investigation with a view to drastically reforming its lead frame business
OREANDA-NEWS. Sumitomo Metal Mining Co., Ltd. (SMM) has decided to conduct an investigation with a view to drastically reforming its lead frame business, and has reached an agreement with Chang Wah Electromaterials Inc. (Chang Wah Electromaterials, Headquarters: Kaohsiung, Taiwan) to have a letter of intent (LOI) signed between Chang Wah Electromaterials and our subsidiary SH Materials Co., Ltd. (SH Materials, Headquarters: Minato-ku, Tokyo, President and Representative Director: Naoka Inoue) for the cooperation of Chang Wah Electromaterials in the investigation.
SMM’s lead frame business is currently managed by the holding of shares through SH Materials in domestic and overseas companies that produce and sell products on the basis of a cooperative framework established in July 2013 with Hitachi Metals, Ltd. (Hitachi Metals, Headquarters: Minato-ku, Tokyo, President and CEO: Hideaki Takahashi) via integration of the lead frame and copper product businesses. However, upon the commencement of the aforementioned rebuilding, both companies have agreed to dissolve this integration. Accordingly, SMM will take over the lead frame business and through SH Materials will make decisions concerning the business in a more timely fashion.
SMM shall provide further information as soon as any decisions are made regarding specific details through discussions between SH Materials and Chang Wah Electromaterials, including any formal agreements. Further information shall also be provided regarding the impact of the measures to be implemented for the rebuilding of the lead frame business on SMM’s results as soon as any decisions regarding specific details are made.