NGK Insulators Ltd. is ramping up its semiconductor equipment business in the United States as the Japanese manufacturer seeks to offset declining demand for its auto emissions products.
The company’s FM Industries unit completed a new production facility in Arizona to manufacture wafer fabrication chambers, supplementing its existing California operations. The expansion, estimated to cost tens of millions of dollars, is expected to begin operations within two years.
The investment reflects NGK’s broader pivot toward semiconductor-related products. The company plans to increase capital spending in its digital segment by 19% to 21 billion yen ($135 million) in the fiscal year ending March, with similar investments projected for coming years.
While NGK’s environmental unit, focused on exhaust purification, currently generates about 90% of operating profit, the shift toward electric vehicles threatens this revenue stream. The company is diversifying by expanding production of heat-dissipating substrates for power semiconductors in Malaysia and implementing AI to accelerate materials development.
NGK President Shigeru Kobayashi said the company plans to invest between 30 billion yen and 40 billion yen in research and development for the fiscal year ending March 2026, though carbon-reduction technologies aren’t expected to meaningfully impact earnings until the 2030s.
