Honeywell (NYSE: HON) Electronic Materials announced today that it is expanding production capacity for 300mm sputtering targets and related metals as part of a long-term investment plan to support rebounding semiconductor industry growth.
Honeywell is increasing targets production capacity, as well as its internal capacity to produce the copper, cobalt, titanium, and tungsten raw materials used to make the targets. The expansion will allow Honeywell to meet growing demand for targets, which are used as the source of metal to make circuits in advanced semiconductors.
"Honeywell is committed to the semiconductor industry and is making the necessary investments to ensure we are ready to support its growth," said Mike Norton, product line director of PVD sputtering targets for Honeywell Electronic Materials. "This commitment, combined with our integration of critical raw materials, uniquely positions us to serve our customers."
The semiconductor industry has been rebounding from a significant downturn and is expected to deliver more than 25 percent growth by the end of 2010. A number of leading semiconductor fabrication facilities have already announced forecasts for continued expansion in output in 2011.
To address this accelerating demand, Honeywell's investments in process optimization, resource expansion and new equipment will, by the end of this year, increase raw material capacity for copper by 110 percent, cobalt by 100 percent and titanium by 35 percent, and increase 300mm sputtering target capacity by more than 90 percent. The company is also planning to double production of tungsten next year to meet growing application demand in advanced 300mm devices.
Honeywell is a leader in the production of sputtering targets. The metal, such as copper, cobalt, titanium or tungsten, is primarily used to form the wiring that conducts the electrical current through the circuits.
In addition to manufacturing targets, Honeywell is vertically integrated in the production of source materials and offers a supply of materials dedicated to the semiconductor industry. The resulting supply chain offers customers better quality control and delivery assurance at times of source material shortages and/or industry ramps.
The industry is increasingly moving to larger 300mm wafers for production because of manufacturing and cost benefits and Honeywell has added capacity over recent years to produce the targets that support 300mm wafer production. The company produces targets at its Spokane, Wash., and Jincheon, Korea, facilities and metals at its Spokane; Golden, Co.; and Fombell, Pa. facilities.
Honeywell Electronic Materials, part of Honeywell Specialty Materials, supplies microelectronic polymers, electronic chemicals, and other advanced materials along with an extensive set of product offerings under its metals business segment, including physical vapor deposition (PVD) targets and coil sets, precious metal thermocouples, and materials used for thermal management and electrical interconnect.