Kyocera, a major Japanese Electronic parts manufacturer, announced on the 1st that the company plans to build a new semiconductor packaging plant in Vietnam, with an estimated investment of about 10 billion yen. The new plant is still in the detailed design stage and is scheduled to start operation between the end of 2022 and the beginning of 2023.

Kyocera President Hideo Tanimoto emphasized that there is also a need to build new factories outside Vietnam, otherwise it will not be able to meet the demand, and the supply is currently in short supply. He also said that the Vietnam factory has secured enough land to build four new factories.

As the popularity of 5G communication drives the demand for semiconductors, Kyocera has been receiving orders for components such as ceramics for semiconductor packaging, etc., and hopes to increase production to meet customer needs.

Ceramic parts with high heat resistance and heat dissipation fins for semiconductor manufacturing equipment are currently one of the most popular products. In order to improve the supply capacity of semiconductors, manufacturers of major semiconductor production equipment have begun to increase production, and the supply of related parts has also begun to tighten. Tanimoto Hideo pointed out that the relevant demand mainly from overseas markets is extremely hot.

Kyocera just announced on October 20 that it will invest about 11 billion yen to build a new plant at its Kokubu plant in Kagoshima, Japan.

Due to the current hot semiconductor market, Hideo Tanimoto said that considering the increase in the production of related products in the future, it is necessary to think about the investment plan of the Kagoshima Kawauchi factory. The company plans to increase production of semiconductor ceramic packages and organic substrates, and also plans to increase production capacity for components such as resistors and quartz crystals.

Kyocera plans to invest 170 billion yen in fiscal 2021, and will also make large-scale investments in the next three years. Tanimoto Hideo hinted that the investment amount may increase.

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