DIC, Taiyo Holdings Becomes Equity-Method Affiliate of DIC

DIC Corporation entered into a capital and business alliance with Tokyo-based Taiyo Holdings Co., Ltd., as a result of which Taiyo Holdings would become an equity-method affiliate of DIC. A capital and business alliance agreement between the companies was concluded the same day.
 
Taiyo Holdings is involved in the manufacture and sale of chemical products for use in printed wiring boards (PWBs) and other electronics components and in semiconductors.
 
DIC sees the electronics market, in which Taiyo Holdings operates, as particularly encouraging, primarily because it offers potential for stable growth into the future and a considerable scope for leveraging DIC’s proprietary technologies. In addition to providing synthetic resins, pigments and liquid crystals, among others, to electronics manufacturers, DIC is promoting the development of next-generation products, including printed electronics, thermal materials and other high-value-added offerings that capitalize on its core technologies.
 
Technologies owned by DIC and Taiyo Holdings will be leveraged to develop products for molded interconnect devices (MIDs) and other new types of PWB. The two companies will capitalize on DIC’s polymer development and pigment dispersion technologies to collaborate in the development of printable materials for PWBs.
 
DIC will make use of Taiyo Holdings’ industry connections, as well as its evaluation technologies, to facilitate the development and swift commercialization of products suited to market needs. DIC will produce solder resist under contract at certain overseas production facilities, which will increase the operating rates of these facilities and reducing production costs for Taiyo Holdings.
 
Taiyo Holdings will allocate 5,617,000 shares of its common stock, representing 19.50% of voting rights and 19.47% of shares issued, to DIC through a third-party allotment. As a consequence, DIC will become Taiyo Holdings’ principal shareholder and Taiyo Holdings will become an equity-method affiliate of DIC.