[News] SUMCO Delays Construction of Two Silicon Wafer Fabs Amid Market Shift

Japanese silicon wafer supplier SUMCO has announced a delay in the construction of two new wafer fabs, citing structural changes in the global semiconductor market. The company noted that while demand for wafers used in PCs and smartphones has stabilized, demand driven by generative AI is surging. At the same time, quality requirements beyond the 2nm node are expected to become more stringent, intensifying technological competition.

In response to these shifts, SUMCO deemed that prioritizing upgrades to existing facilities—rather than expanding capacity—would be a more economically rational approach and better support competitiveness in capturing demand for leading-edge semiconductor wafers.

To strengthen its capabilities in advanced-node applications, SUMCO will focus on upgrading manufacturing equipment at existing sites, particularly its facilities in Imari, to support production of next-generation wafer products.

In 2023, SUMCO announced plans to invest JPY 225 billion to build two new wafer fabs—one within its existing site in Imari, Saga Prefecture, and another in Yoshinogari. At the time, Japan’s Ministry of Economy, Trade and Industry (METI) approved subsidies of up to JPY 75 billion for the projects.

Following the revision of its construction plans, SUMCO indicated that it will carefully assess market conditions before determining the timing for breaking ground on the new facilities. Due to the changes, the government subsidy is expected to be reduced from the originally approved maximum of JPY 75 billion to JPY 19.3 billion.

SUMCO emphasized that its commitment to ensuring a stable domestic supply of silicon wafers in Japan remains unchanged, adding that the revised plan represents the most appropriate strategy from both economic and competitiveness perspectives.

(Photo credit: SUMCO)