DAIICHI KIGENSO KAGAKU KOGYO CO., LTD. announced that it had established domestic hafnium manufacturing technology and aims to begin domestic mass production in 2028. Hafnium is positioned as a primary raw material for high-k materials used in advanced semiconductors.
Headquartered in Osaka, DAIICHI KIGENSO KAGAKU KOGYO CO., LTD. is a manufacturer focused on zirconium compounds and is regarded as the world's only company capable of handling the entire process in-house, from ore refining through to finished products. Its products are used in a wide range of applications, including automotive parts, electronic components, battery materials and semiconductor polishing materials, and the company is said to account for approximately 40% of the global market.
The company has established a system under which it produces intermediate materials from zirconium ore, ships them to Japan and completes the finished products there, creating an upstream supply route that does not pass through China. With volatility in the Chinese market and supply chains remaining high, separating the supply routes in this way is regarded as a factor enhancing its strategic value.
The company announced in August 2026 that it had established domestic hafnium manufacturing technology. It plans to begin providing samples for semiconductor and other applications by the end of the year and aims to begin domestic mass production in 2028. Hafnium is also designated as a specified critical material under the Economic Security Promotion Act.
Investors are advised to watch closely how operating rates at the Vietnamese subsidiary, foreign-exchange effects, progress in in-house production and the shift in the company's business focus toward growth fields will affect future profitability.