The Japanese ceramics industry is facing a temporary slump in demand for semiconductors and electronic components, but it is showing a positive attitude to prepare for adversity. Noritake Co., Ltd. plans to invest 20 billion yen to increase production of firing furnaces for manufacturing lithium-ion battery (LiB) parts. NGK also plans to increase capital investment related to semiconductors and electronic components by 1.5 times to 25 billion yen by the end of FY2023.
Hiroshi Kato, president of Noritake Co., Ltd., said that the reversal of demand is certain and that from fiscal 2025, the company will establish a system for rapid growth. Their plan is to invest 20 billion yen in three years from 2022 to 2024 to strengthen the production capacity of firing furnaces and electronic paste materials.
NGK is making preparations for products whose demand will increase in the next three to four years, and expects strong medium- to long-term demand. The company will accelerate investment in digital-related products to boost sales, and plans to start operating a new R&D building in 2025.
NTK CERATEC, a subsidiary of NGK SPARK PLUG CO., LTD., is also constructing a new plant with the aim of increasing production of ceramic components for semiconductor manufacturing equipment.
Companies anticipate the end of the demand adjustment phase for semiconductors and electronic components, and are accelerating investments to succeed in growth markets.