Niterra (NGK), a major automotive parts manufacturer, is repurposing its automotive ceramics technology for semiconductor manufacturing equipment. As demand for AI expands, the company is moving to establish multiple new plants and strengthen growth investment.
Niterra (NGK) is attracting market attention as a little-known semiconductor play by repurposing its ceramics technology, developed for automotive applications, for semiconductor manufacturing equipment. The company is seeking to meet expanding demand by applying technology for components that withstand high temperatures and harsh environments to equipment used in semiconductor production.
To meet the sharp increase in demand for AI semiconductors, the group has indicated that it plans to establish new plants one after another. The market is increasingly valuing its move to direct the production capacity and technological expertise developed in automotive parts toward investment in growth areas.
The company has emphasized its policy of allocating the stable cash generated by its automotive business to growth investment, making the use of its cash flow a key focus. The share price has reportedly shown movements similar to those of other semiconductor stocks.