Japan’s Showa Denko sets up third high-purity gas base in China

SINGAPORE (ICIS)–Japan’s Showa Denko (SDK) said on Wednesday that its Chinese subsidiary Shanghai Showa Chemicals has set up a new high-purity gas branch in Shaanxi province.

The branch in Xi’an started operations in December.

It is Showa Denko’s third business base in China that will sell and distribute high-purity gas for electronics, following those in Shanghai and Wuhan.

The new branch aims to upgrade their customer service and strengthen their system to ensure stable supply of high-purity gases, it said.

The business has been growing rapidly thanks to robust demand in China.

“The demand for semiconductors has been increasing due to the spread of the 5G [five generation] and cloud computing services, and increase in the amount of communicated data resulting from the rise in distribution of movie contents,” Showa Denko said.

“The Chinese market for semiconductors has been expanding very rapidly due to the Chinese government’s policy to nurture the electronics industry,” it added.