An early victim in the current downturn and credit crunch, wafer cleaning equipment supplier, S.E.S. Co Ltd has filed for bankruptcy under the corporate rehabilitation law of Japan, with debts of 14.273 billion yen (US$158. million). S.E.S President, Masaya Shibagaki has also resigned, the company has announced.
S.E.S. was known to be a major supplier of wet bench equipment to memory manufacturers such as Samsung and Hynix and had attempted to branch into the photovoltaics industry in 2006.
The rapid and wide spread reduction in capital spending, which virtually cam to a halt in the fourth quarter of 2008, especially at memory manufacturers could have been the key decision to apply for bankruptcy as further lines of credit evaporate in the tightening credit crisis.
The company had seen sales decline over 90% in its 2007/08 financial year and accrued losses of 3.2 billion yen in the six months to September 2008, according to regulatory filings.