Fujifilm Holdings, a major producer of semiconductor raw materials and one of the few suppliers of ultra-pure photoresists for EUV lithography, plans to invest 100 billion ($640.5 million) by March 2027 to expand semiconductor materials production globally, according to Nikkei. The company is reportedly aiming to expand capacity in the US, Japan and South Korea as major chipmakers build novel advanced FABs in the mentioned countries. However, Fujifilm is yet to confirm the plan.
The outlined spending will double its investments from the last three years, aiming to meet growing demand driven by novel FABs in the US (Intel, TSMC), Japan (Koxia, Micron, TSMC) and South Korea (Samsung, SK Hynix) as -high-class processors for the AI and HPC sectors. Moreover, the company also plans to tap the Indian market as India is a country that is also trying to create microelectronics.
Fujifilm ranks fifth globally in photosensitive semiconductor materials and supplies major chipmakers such as TSMC and Samsung. It is also one of five makers of Ultra-Pure EUV photoresists along with JSR, Dupont, Tokyo Ohka Kogyo (Tok) and Shin-Etsu Chemical. Because EUV operates at an extremely low wavelength of 13.5 Nm, photoresists must meet stringent requirements in terms of sensitivity, resolution, line roughness, and compatibility with EUV photomask materials.
The onshoring of advanced chip manufacturing has a drastic impact on the entire semiconductor industry, as not only the actual chip manufacturers such as Intel and TSMC establish novel production facilities, invest tens of billions of dollars, but their ecosystem partners, as is the case with Fujifilm.
Fujifilm plans to improve production near key customers to strengthen partnerships and better serve the rapidly growing semiconductor market. In Japan, Fujifilm is building a novel facility in Shizuoka for 13 billion pounds ($83.27 million). In South Korea, the Pyeongtaek facility will receive novel equipment that will be available by fall. Additionally, the Cheonan abrasives plant will raise output capacity by 30% once mass production begins by spring 2027.
The company is also exploring opportunities in India, where it could partner with local companies or enter into joint ventures to produce chip materials. Depending on customer activity, Fujifilm may build its own facilities there after fiscal 2027.
Fujifilm identifies chipmaking materials as a key growth area and plans to double its sales in this sector, targeting 500 billion ($3.2 billion) by fiscal 2030, compared with fiscal 2024. The expansion is in line with Japan’s dominant position in this critical supply chain, as the country currently controls half of the market for crucial semiconductor materials.
Research by Fuji Keizai cited by Nikkei predicts that the global chip materials market will grow by 35%, reaching USD 58.3 billion by 2029 compared to 2023 levels.
