Fujifilm Holdings, a leading supplier of raw materials for semiconductor production and one of the few providers of ultra-pure EUV photoresists, plans to invest ¥100 billion ($640.5 million) by March 2027 to expand its semiconductor materials production globally. This move comes as major chipmakers ramp up production in the U.S., Japan, and South Korea with new advanced semiconductor fabs under construction in these regions.

The investment will double Fujifilm's spending over the past three years to meet the growing demand driven by new facilities from chip giants such as Intel and TSMC in the U.S., Kioxia, Micron, and TSMC in Japan, and Samsung and SK hynix in South Korea. Additionally, the rise of ultra-high-end processors for AI and high-performance computing (HPC) is expected to fuel further demand. Fujifilm is also eyeing opportunities in India, which is rapidly expanding its microelectronics manufacturing capacity.

Fujifilm is ranked fifth globally in photosensitive semiconductor materials and supplies major chipmakers like TSMC and Samsung. It is also one of only five manufacturers of ultra-pure EUV photoresists, which are essential for the production of next-generation semiconductors. These photoresists must meet stringent requirements, including sensitivity, resolution, and compatibility with EUV photomask materials, due to the extreme short wavelength of 13.5nm at which EUV lithography operates.

With the ongoing trend of onshoring advanced chip production in various countries, the semiconductor ecosystem is seeing companies like Fujifilm boost production capacity. Fujifilm is building a new plant in Shizuoka, Japan, with an investment of ¥13 billion ($83.27 million). In South Korea, it is upgrading a facility in Pyeongtaek, with new equipment set to go online by autumn. Additionally, a plant in Cheonan, South Korea, will increase its production capacity of abrasive agents by 30%, with mass production expected to start in spring 2027.

Fujifilm is also exploring partnerships in India, where it may collaborate with local firms or establish a joint venture for chip material production. The company plans to expand its presence in India after fiscal 2027, depending on the activity of its clients in the region.

As part of its long-term strategy, Fujifilm aims to double its semiconductor materials sales, targeting ¥500 billion ($3.2 billion) by fiscal 2030, up from the 2024 fiscal year forecast. This expansion reflects Japan's dominant role in the global semiconductor materials market, as the country currently controls about 50% of the market share for essential materials.

According to research by Fuji Keizai, cited by Nikkei, the global semiconductor materials market is expected to grow by 35%, reaching $58.3 billion by 2029, compared to 2023 levels. With this significant investment, Fujifilm is well-positioned to meet the increasing demand for semiconductor materials as the chip industry continues to thrive.