Tokuyama announced a plan, alongside the signing of an agreement with the city, to build a new plant manufacturing aluminum nitride powder on land in Minamihama, Yanai. The investment is expected to total approximately ¥6.6 billion, with construction scheduled to begin in October 2026 and commercial operations slated to start in April 2028.
Tokuyama, a diversified chemicals manufacturer headquartered in Shunan, has signed an agreement with Yanai to establish operations there and announced plans to build a new aluminum nitride powder manufacturing plant. The agreement was signed by President Tomohiro Inoue (井上智弘) and the mayor of Yanai, and sets out specific initiatives for the company’s expansion into the city.
The new plant will be built on approximately 4,500 square meters of land adjacent to the Advanced Technology Commercialization Center in Minamihama, Yanai. Total construction costs are expected to be approximately ¥6.6 billion. Aluminum nitride powder is used as a ceramic material in semiconductor manufacturing equipment and other applications. Tokuyama has manufactured aluminum nitride powder since 1985 and holds the world’s leading market share.
The new plant is expected to increase production capacity by approximately 30%, with the aim of responding to increased AI-related investment and growing semiconductor demand. Construction is scheduled to begin in October 2026, commercial operations are expected to start in April 2028, and the company plans to hire approximately 10 additional employees.
President Inoue said that the company regards the aluminum nitride business as a core materials business under its medium-term management plan and aims to achieve further growth.