Shin-Etsu Chemical to invest $545 million in chip materials plant

Japanese semiconductor materials manufacturer Shin-Etsu Chemical said on April 9 that the company will invest approximately 83 billion yen (US$545 million) to build a factory in Gunma Prefecture, Japan, to produce semiconductor lithography materials to strengthen Japan's chip supply capabilities. This is the first time in 56 years that Shin-Etsu Chemical has built a new production base in Japan.

Shin-Etsu Chemical plans to invest and build the plant in phases, with the first phase to be completed in 2026. The company said it will use its own funds to invest approximately 83 billion yen in the first phase, including the cost of purchasing 150,000 square meters of business land. Shin-Etsu has the world's largest market share in the fields of semiconductor silicon and photomask substrates, and hopes that the commissioning of the new plant can meet growing customer demand and diversify its production base to supplement the existing factories in Niigata Prefecture and Fukui, Japan, and Taiwan, China.

Japan is setting off a wave of investment in the semiconductor industry. The Japanese government is strongly supporting chip manufacturers to expand production capacity, promoting the strengthening of the country's semiconductor supply chain, and providing support for the defense, automotive and electronics industries.