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Japanese silicon wafer maker Sumco plans $2bn expansion

Shortage-driven demand pushes chipmaking materials suppliers to ramp up capacity

Sumco and compatriot Shin-Etsu Chemical control more than half the global market for silicon wafers. (Photo courtesy of Sumco)

TOKYO -- Japan's Sumco will spend 228.7 billion yen ($2.05 billion) to step up production of state-of-the-art 300 mm silicon wafers for semiconductors, the company said Thursday, amid a persistent global chip shortage.

"With our existing manufacturing facilities, supply can't keep up with demand," Chairman Mayuki Hashimoto told a virtual news conference.

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