FUJIFILM Electronic Materials Co., Ltd. (President: Takatoshi Ishikawa; hereinafter “FFEM”), a subsidiary of FUJIFILM Corporation (President and CEO: Shigetaka Komori) that manufacture and market semiconductor materials, is to set up a semiconductor material manufacturing company in South Korea with 95% capital participation*1 from the Fujifilm Group. FFEM today signed a contract with exax Inc.(head office in Gyoungsangbuk-do, South Korea; hereinafter “exax”), which will make the remaining 5% capital participation in the new company, concerning the establishment of a joint venture and the transfer of some of exax's assets such as factory facilities to the new company. Production at the new company is slated to start in March 2012.

• *1The capital participation ratios are: FFEM (Fujifilm subsidiary) 72%, FUJIFILM Electronic Materials Taiwan Co., Ltd. (FFEM's Taiwanese subsidiary) 23% and exax5%.

As a chemical manufacturer established in 1976, exax supplies display materials and other materials to South Korea's major display manufacturers. The new company is to make effective use of exax's existing land, buildings and facilities to supply South Korea's major semiconductor manufacturers with electronic material products such as developers, CMP slurries and cleaners that are compatible with the cutting-edge semiconductor manufacturing processes based on Fujifilm's proprietary technologies.

The semiconductor market in Asia has continued to make strong growth even after a global recession triggered by the collapse of Lehman Brothers. South Korea, in particular, is increasing its presence in the region's semiconductor market, and is expected to maintain its high level of growth in coming years. The establishment of this manufacturing subsidiary is designed to streamline delivery and enhance its capacity to address customer needs to further increase the level of customer satisfaction.

Positioning the field of highly functional materials as one of its priority businesses, Fujifilm is building a system for globally supplying materials, equipment and services used in semiconductor manufacturing through FFEM's operation bases in Asia, United States and Belgium. By adding a new manufacturing base in South Korea, Fujifilm will further expand its electronic materials business, and contribute to the development of the semiconductor device industry.

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