$$ Dow Adding "Significant Capacity"

More evidence the consumer globally is waking up…

Dow Chemical (DOW) is rushing to add “significant” capacity of TrimethylGallium. Why is TrimethylGallium production important? It’s key end-use applications include a broad range of consumer electronics from personal computers, to television monitors, cellular phones, global positioning systems, automobile safety systems, and avionics.

Remember what we have been saying for what seems years now, Dow “makes the stuff that makes stuff”. It is at the base of global production and its demand filters up to producers and then consumers. As global producers see demand increases down the road, their order will go to Dow first.

-Dow Electronic Materials, a business unit of Dow Advanced Materials, today announced a multi-phase plan to expand their TrimethylGallium (TMG) production capacity to meet the surging global demand for the material in the electronics market.

“The LED market is growing rapidly, particularly in Korea, Taiwan and other countries in the Asia-Pacific region where there is a large display manufacturing base and semiconductor manufacturers are building and converting capacity to manufacture LEDs.”

The expansion plan includes adding significant TMG capacity in the United States at existing facilities to address short-term demand as quickly as possible. In addition, Dow Electronic Materials will build a new metalorganic precursor manufacturing plant in Korea, which is expected to begin operating in early 2011, to create capacity for long-term demand. Total additional TMG capacity resulting from the multi-phase plan is expected to be 60 metric tons per year.

“We are excited that we can greatly expand the supply of our high-purity, electronic-grade precursor materials to our customers with this additional manufacturing capacity,” said Joe Reiser, global business director, Metalorganic Technologies, for Dow Electronic Materials. “We are committed to delivering a reliable supply of high-quality materials to our customers and providing them with the service and technical expertise that they expect from a market leader. We will continue to work closely with our customers to meet both near- and long-term needs.”

TMG is a metalorganic chemical vapor deposition (MOCVD) precursor material that is critical to the manufacture of LEDs and other compound semiconductor devices. Exceptionally high-quality materials and precise delivery of metalorganic precursors are essential to building reliable LEDs.

“Demand for TMG today is being driven by explosive growth in LED backlighting of LCD TVs with the potential of future growth of LEDs in the general lighting market,” said Dr. James Fahey, global general manager, Growth Technologies for Dow Electronic Materials. “The LED market is growing rapidly, particularly in Korea, Taiwan and other countries in the Asia-Pacific region where there is a large display manufacturing base and semiconductor manufacturers are building and converting capacity to manufacture LEDs.”

The new metalorganic precursor plant in Korea will be located in Cheonan, approximately 85 kilometers south of Seoul. Dow Electronic Materials expects to expand the site in the future to manufacture other metalorganic materials in addition to TMG. Dow Electronic Materials currently manufactures TMG and other metalorganic precursors in North Andover, MA, while packaging is done in both North Andover, MA, and Taoyuan, Taiwan.

Dow Electronic Materials is the leading supplier of precursors to the LED market and has patented precursor manufacturing processes and delivery technology.