[News] Japanese Photoresist Giant Shin-etsu Chemical Rumored to Build a New Plant

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At the time when Japan is strengthening the construction of its semiconductor supply chain, as per a report from the Japan Times, Japanese photoresist giant Shin-Etsu Chemical is rumored to build a chip material plant in Gunma Prefecture, Japan, which marks its first new domestic manufacturing base in Japan over the past 56 years.

It’s reported that Shin-Etsu Chemical plans to invest approximately JPY 83 billion (USD 547 million) in Isesaki City, northern Tokyo, Gunma Prefecture, Japan to construct a factory covering an area of around 150,000 square meters, which is scheduled to be completed in 2026.

This new base, to produce photoresist and other materials used in semiconductor lithography processes, will become the strategic center for Shin-Etsu Semiconductor Materials, exporting to South Korea, the United States, and other regions. The company also plans to conduct research and development there eventually.

Public data shows that Shin-Etsu Chemical holds about 20% of the global photoresist market, especially in advanced product field, where it aims to capture at least 40% market share. Currently, the company mainly produces photoresist in Taiwan and Niigata Prefecture, Japan.

Japan has long held a strong global market position in upstream semiconductor aterial markets, especially in areas such as silicon wafers and photoresist, where its market dominance remains unshaken.

Currently, many Japanese companies are expanding production and conducting research and development. Industry sources indicate that Mitsui Chemicals is expanding a factory in Yamaguchi Prefecture to produce films, which are used to protect photomasks from dust and damage during the lithography process.

Mitsui Chemicals will invest between JPY 5-9 billion and begin mass production in 2025 or 2026. Fuji Film has also started domestic production of CMP slurry for wafer polishing in Japan, and Nippon Sanso Holdings plans to start producing neon gas (Used in the chip manufacturing process) in Japan around 2026.

Read more

• [Insights] Analysis of the Global Photoresist Market in 2023

(Photo credit: TSMC)