TOWA, a semiconductor equipment maker, announced plans to build a new plant in Kyoto Prefecture, with an investment of approximately ¥5 billion. The company is expected to produce back-end equipment for advanced AI semiconductors in Japan, with operations targeted to begin in 2029.
TOWA, a semiconductor manufacturing equipment maker, disclosed plans to build a new plant in Kyoto Prefecture. The investment is expected to total approximately ¥5 billion, and the plant will produce equipment for assembly and packaging processes used for advanced semiconductors for AI applications and other products. Operations are scheduled to begin in 2029.
The company has so far produced through overseas plants and domestic subcontractors, but aims to establish a domestic supply structure. It is also said to be promoting a return to domestic production from the perspective of economic security, positioning the plan as part of a move to produce back-end equipment in Japan.
For AI semiconductors, the process of packaging compute chips and HBM together has become important, increasing the importance of back-end processes such as assembly and testing, in addition to front-end processes. TOWA also pointed to the growing importance of back-end processes as AI adoption expands in an announcement issued in 2025. The formal disclosure and progress of the investment will be key points to watch.