Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
TOKYO (Reuters) - Japan semiconductor materials maker Shin-Etsu Chemical said on Tuesday it will invest around 83 billion yen ($545 million) in a factory in Gunma prefecture in the latest effort to strengthen the country's chip supply chain.
The factory will produce lithography materials for use in chipmaking, with the first phase of investment to be completed by 2026 as Shin-Etsu looks to tap into growing customer demand and diversify its production base.
Shin-Etsu, which makes lithography materials including photoresists and photomask blanks, already has facilities in Niigata prefecture, Fukui prefecture and Taiwan. It will use its own funds for the investment in the new factory.
Japan is seeing a wave of investment in its semiconductor sector, which supplies chips essential to the defence, automotive and electronics industries, with the government supporting the expansion of capacity by domestic and foreign chipmakers.
($1 = 151.8700 yen)
(Reporting by Sam Nussey; Editing by Jamie Freed)
