Shin-Etsu Chemical of Japan Plans $545 Million Investment in Chip Materials Plant

Japan's Shin-Etsu Chemical, a prominent semiconductor materials manufacturer, announced plans on Tuesday to invest approximately 83 billion yen ($545 million) in a new factory located in Gunma prefecture. This initiative aims to bolster Japan's chip supply chain.

The factory will specialize in producing lithography materials crucial for chip production. The first phase of investment is slated for completion by 2026, with Shin-Etsu aiming to meet rising customer demand and broaden its production footprint.

With existing facilities in Niigata prefecture, Fukui prefecture, and Taiwan, Shin-Etsu will utilize internal funds for this new venture. Japan is witnessing a surge in semiconductor sector investments, vital for defense, automotive, and electronics industries. The government is actively supporting capacity expansion efforts by both domestic and foreign chipmakers.