The $21 million investment comes in response to increased demand for advanced semiconductor materials used in leading-edge devices. Construction is scheduled for completion at the end of September 2002, with commercial production planned to begin early in 2003.

JSR's existing plant in Leuven, the company's first outside Japan, has reached its production limit and will close shortly after commercial production commences at the new site.

The planned plant will initially be capable of producing advanced KrF (Krypton Flouride Excimer Laser) photosensitive resists using a state-of-the art manufacturing process. The production capacity for "photoresists" will be 200,000 liters (approximately 50,000 gallons) per year. In addition to KrF photoresist, initial manufacturing will include photoresist developers.

The company also plans to allocate space for future production of new semiconductor materials such as interlayer dielectric materials (Low-K materials) and chemical-mechanical polish (CMP) materials.

JSR's current worldwide manufacturing locations include Yokkaichi, Japan; Belgium (JSR Electronics); California (JSR Microelectronics, Inc.); and Saga, Japan (JSR Electronics Kyushu Co., Ltd.).

Leuven is a leading semiconductor center with extensive R&D facilities and a significant number of specialized overseas and local companies