Shin-Etsu Chemical has announced plans to establish its first new manufacturing facility in Japan since 1970. The plant, slated for completion in 2026 in Gunma prefecture, represents a $547 million investment into the future of semiconductor manufacturing. Shin-Etsu, a dominant player with approximately 20% of the global photoresist market share, is reinforcing its position amid Japan’s concerted efforts to enhance its semiconductor supply chains.
The Gunma facility will focus on producing photoresists and other critical materials for the semiconductor photolithography process. This move not only strengthens Shin-Etsu’s manufacturing capabilities but also positions the plant as a strategic hub for exporting semiconductor materials to key markets such as South Korea and the United States.
The announcement comes at a time when Japan is aggressively working to bolster its domestic semiconductor production, aiming to mitigate economic security risks. This strategy includes significant investments by other industry players, such as Mitsui Chemical’s expansion to produce advanced pellicles and Rapidus’s plans for a new chipmaking plant.
Japan’s initiative to enhance its semiconductor infrastructure reflects a broader global trend, with countries like South Korea and Taiwan also making substantial investments in this critical industry. Japanese companies, leveraging longstanding expertise in chipmaking materials, are central to these efforts, holding a significant market share in essential components.
Shin-Etsu’s new venture in Gunma, along with other strategic investments in the semiconductor sector, highlights Japan’s determination to maintain and expand its influence in the global tech industry. This renewed focus on semiconductor manufacturing underscores the importance of innovation and collaboration to secure a resilient and advanced supply chain for the future.
