KYOCERA to Build Two New Plants for Ceramic Components Supporting IoT, 5G

Rhea-AI Summary

Kyocera Corporation has announced plans to construct two new facilities in Kagoshima, Japan, aimed at doubling the production capacity of fine ceramic components used in semiconductor manufacturing. The investment totals approximately 11 billion yen (about 97 million USD), with construction beginning in November 2021. The new plants, scheduled to start production in October 2022 and October 2023, are expected to generate an annual revenue of 3.4 billion yen (around 30 million USD) from April 2023 to March 2024.

Positive

• Expansion of fine ceramic component production capacity in Kagoshima, Japan.
• Investment of approximately 11 billion yen (97 million USD) indicates strong commitment to growth.
• Expected annual revenue of approximately 3.4 billion yen (30 million USD) from new facilities.
• Facilities will create new employment opportunities in the Kagoshima community.

Negative

• None.

Expansion will double production capacity in Kagoshima, Japan, for customers worldwide

KYOTO, Japan--(BUSINESS WIRE)-- Kyocera Corporation (President: Hideo Tanimoto, hereinafter “Kyocera”) announced today that it will construct two additional production facilities at its Kokubu Plant Campus in Kagoshima, Japan, to serve customers worldwide. The new facilities will double the campus’ production capacity for fine ceramic components used in semiconductor manufacturing equipment, while securing space for other manufacturing as Kyocera’s business expands. A signing ceremony held on October 20, 2021 included Kagoshima Governor Koichi Shiota, Kirishima City Mayor Shinichi Nakashige, and Kyocera officials. Construction is scheduled to begin in November 2021.

Architect’s rendering of the new facilities, No.7-1 (right) and No.7-2 (left) (Graphic: Business Wire)

The growth of Internet of Things (IoT) and 5G telecommunications services is fueling demand for semiconductors used in nearly everything from personal computers, smartphones, and data centers to automobiles. To respond to this acceleration in the semiconductor market, Kyocera is increasing production of high-demand fine ceramic components used in semiconductor manufacturing equipment. The company plans to begin production of fine ceramic components at the new No.7-1 plant in October 2022, and at the No.7-2 plant in October 2023.

Kyocera expects its fine ceramic business expansion to stimulate economic development in Kagoshima Prefecture and create new employment opportunities in the community.

Outline of New Facilities

Name	Plants No.7-1 & 7-2 at Kyocera’s Kagoshima Kokubu Plant Campus
Address	1002-1 Kokubukamikogawa, Kirishima-shi, Kagoshima Prefecture, Japan
Total investment	Approximately 11 billion yen (approx. 97 million U.S. dollars)
Building footprint	No.7-1: 5,174 m2　(55,692 f2), steel construction, 2 stories No.7-2: 6,996 m2　(75,304 f2), steel construction, 6 stories
Total area	No.7-1: 10,120 m2 (108,931 f2) / No.7-2: 37,497 m2 (403,614 f2)
Construction plan	No.7-1: Construction to begin November 2021 Facility to open October 2022 No.7-2: Construction to begin November 2021 Facility to open October 2023
Production items	Fine ceramic components for semiconductor manufacturing equipment used in IoT, 5G telecommunications and other applications
Expected production level	Approximately 3.4 billion yen (approx. 30 million U.S. dollars) per year (April 2023-March 2024)

About KYOCERA

Kyocera Corporation (TOKYO:6971, https://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of industrial and automotive components, semiconductor packages, electronic devices, smart energy systems, printers, copiers, and mobile phones. During the year ended March 31, 2021, the company’s consolidated sales revenue totaled 1.5 trillion yen (approx. US$13.8 billion). Kyocera is ranked #603 on Forbes magazine’s 2021 “Global 2000” list of the world’s largest publicly traded companies, and appears on The Wall Street Journal’s latest list of “The World’s 100 Most Sustainably Managed Companies.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20211021005368/en/

KYOCERA Corporation (Japan), Corporate Communications

Kenichi Hara, Tel: +81-(0)75-604-3514

Fax: +81-(0)75-604-3516

webmaster.pressgl@kyocera.jp

Source: KYOCERA Corporation

FAQ

What is the purpose of Kyocera's new facilities in Kagoshima, Japan?

To double the production capacity for fine ceramic components used in semiconductor manufacturing.

How much is Kyocera investing in the new facilities in Kagoshima?

Kyocera is investing approximately 11 billion yen (about 97 million USD) in the construction.

When will the new plants in Kagoshima begin production?

The No.7-1 plant will start production in October 2022, and the No.7-2 plant in October 2023.

What is the expected annual revenue from the new facilities once operational?

The expected annual revenue is approximately 3.4 billion yen (around 30 million USD) for the period from April 2023 to March 2024.