Taiyo Yuden (U.S.A.), Inc. announced today that its parent, Tokyo-based Taiyo Yuden Co. Ltd., will significantly expand its manufacturing and market presence through a concurrent two-phase expansion program designed to provide the next level of support and service to customers in the northern and southern regions of China.

The rationale behind the estimated US$30M investment is to optimize group production, marketing and logistics capabilities, to strengthen Taiyo Yuden corporate culture in its China operations, and to raise levels of customer satisfaction through regionally produced components with wider distribution and faster customer delivery.

The first milestone will coincide with the start of the company's new fiscal year in April 2004. At that time, mass production will begin of high-capacity (0603 case size) multilayer ceramic capacitors (MLCC), one of the company's premier product lines and an important addition to Taiyo Yuden's product mix in the rapidly developing Chinese cellular telephone market. Located in southern China, Taiyo Yuden (Guang Dong) Co., Ltd. currently integrates production, from the wafer process forward, of ultra-small (0402 case size), MLCCs and multilayer chip inductors.

The second phase of the program will see the June 2004 operational start of Taiyo Yuden (Tianjin) Electronics Co. Ltd. As a company, Taiyo Yuden was among the first to realize China's potential as an optimized production location. This new 322,000+ sq ft manufacturing plant in northern China–Taiyo Yuden's sixth location in country since 1994–will assume production of the company's wound chip inductors, axial-leaded inductors and ferrite beads, following the recent transfer of manufacturing operations from Korea to this primary market location.

With approximately 500 employees, the new site will bolster the company's market presence and ability to supply products and services to customers in northern China, the main market for wound inductors, and an area that has attracted many Korean manufacturers. Mr. Hwang Dae Jang, currently Managing Director of Korea Taiyo Yuden, will head the new operation, supported by key staff from Korea Tong Yang Yujun and Korea Taiyo Yuden. This management team has taken the lead in building the new facility, integrating the company's high-end production technologies, and enhancing good relations with leading Korean OEMs serving the Chinese market.


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