Tokyo-based Fujifilm has invested 7 billion yen ($44 million) in an expansion project as it forecasts rapid market growth. The company is increasing the output of essential materials required for advanced semiconductor manufacturing to capitalize on rising demand.
The global expansion of data centers for artificial intelligence has led to bottlenecks and shortages in the supply chain, which benefits the company, better known for its cameras and office copiers.
This month, Fujifilm opened a new production facility that will triple the production of post-CMP cleaners at its plant in Oita Prefecture, Japan. These substances are critical for removing particles and residues from wafers after chemical-mechanical polishing.
Semiconductors have become the most promising growth segment for Fujifilm's business, which previously suffered from stagnation in office equipment sales. Last month, the company's shares experienced its steepest decline in history following disappointing financial results.
Fujifilm is actively increasing the development of advanced products and production capacity for a wide range of semiconductor materials, including CMP slurries, post-CMP cleaners, photoresists, and polyimides. Similar to other Japanese companies in the chip supply chain, Fujifilm is adapting its chemical expertise from another industrial sector to the high-precision manufacturing of indispensable production consumables. Revenue from this segment grew by 25% compared to the previous year in the April-June quarter.
The new investments are part of a broader strategy to transform semiconductor and biopharmaceutical materials into core business areas for Fujifilm. The company is also considering spinning off its problematic legacy business, which still accounts for 35% of the group's total revenue. Fujifilm believes that structuring this division as a separate company will allow for faster investment decisions in new focus areas.
Fujifilm aims to position itself as a supplier for more stages of the chip fabrication process, including materials for lithography and advanced packaging. The company has developed AI-based tools that help engineers determine formulas for new chemicals within months, instead of the years previously required for research.