SUMCO Adjusts Strategy to Focus on Equipment Upgrades Amid Market Changes
SUMCO Corporation will upgrade existing manufacturing equipment rather than build a new fab, following METI approval. This strategy aims to enhance production capabilities for advanced semiconductor applications, notably in response to rising demand from generative AI and stringent technical requirements.
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On March 27, 2026, SUMCO Corporation received approval from Japan's Ministry of Economy, Trade and Industry for a revised supply plan under the Economic Security Promotion Act. The maximum subsidy has been reduced from JPY 75 billion to JPY 19.3 billion, while the focus shifts to upgrading manufacturing equipment at existing facilities, particularly in Imari City, Saga Prefecture.
This decision responds to structural changes in the semiconductor market, with a notable rise in demand linked to generative AI. As market conditions evolve, SUMCO will defer decisions on previously planned expansion projects, emphasizing a more competitive approach through resource allocation to enhance current production capabilities.
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