NGK Insulators has announced that it will invest a total of ¥8.96 billion ($56 million) in FM Industries, a subsidiary that manufactures components for semiconductor manufacturing equipment, to increase production capacity by approximately 1.2 times.
With production scheduled to begin in January 2027, FMI will establish a supply system capable of meeting the expected growth in semiconductor demand.
NGK produces ceramics for semiconductor manufacturing equipment at its Chita site (Handa City, Aichi Prefecture) and at its manufacturing subsidiary NGK Ceramic Device.
In addition, FMI uses metal machining and thermal spraying technologies (technologies for applying a metal or ceramic coating to the surfaces of components) to produce the high-precision components needed for semiconductor manufacturing equipment.
In 2023, FMI invested approximately ¥3.0 billion to acquire a site of over 30,000 sq m and a building with a floor area of over 10,000 sq m in Arizona, US. The company will now invest an additional amount of approximately ¥6.0 billion to install equipment and upgrade the building.
With production scheduled to begin in January 2027, FMI will establish efficient production lines, thereby increasing production capacity by approximately 20 percent compared with the previous level.
In the United States, major semiconductor manufacturers are advancing capital investment. To meet semiconductor demand, including demand for semiconductors for AI, which is expected to continue growing, FMI will continue working not only to secure supply capacity but also to establish a robust supply chain premised on local production.
Under the “NGK Group Vision: Road to 2050”, a medium- to long-term vision for the future in 2050, the NGK Group aims to achieve a business structure conversion toward the carbon neutrality (CN) and digital society (DS) domains. Through FMI’s site expansion, the NGK Group will contribute to the development of a digital society and the solution of social issues.
Overview of the production site planned for expansion
- Location: FM Industries, 4150 S Riverpoint Pkwy, Phoenix, Arizona 85040, US
- Investment: $64 million (approx. ¥8.96 billion)
- Scheduled start of production: January 2027
- Site area: 31,700 sq m
- Floor area: 10,100 sq m
- Number of employees: approximately 150
Main image: Exterior of FM Industries plant planned for expansion in Arizona
