The supply chain for electronics production and the materials behind computers and chips has been tested over the past two years and continues to be cited by leading companies as a major concern for investors and customers.
In the meantime, the long-term outlook calls for greater demand for materials, components and chips used in the global supply chain.
Companies such as TSMC, Samsung and Intel have sought to expand production for chips, while the materials themselves have come into focus.
In one example, Fujifilm Electronic Materials USA recently announced a strategic investment of $350 million in its U.S. business through early 2024. That $350 million is one-third of Fujifilm’s planned global investment of $1 billion into its electronic materials business for capital and R&D needs to meet expanding demand.
Like the overall sector, Fujifilm expects long-term semiconductor market growth, putting a focus on the critical role on the specialized chemicals and materials Fujifilm makes. The company’s U.S. investment will support Fujifilm’s development and manufacture of materials and chemicals, particularly Chemical Mechanical Polishing slurry and Photolithography-related high purity materials.
The investment will allow continued expansion of manufacturing, quality and R&D equipment at the company’s existing plants in Arizona, Rhode Island, Texas and California. The company also plans to add at least 120 new positions in chemistry, engineering, manufacturing, warehousing and maintenance by the end of 2024.
Earlier this year, Fujifilm Electronic Materials USA completed an $88 million expansion of its Mesa, Arizona family, with five new buildings. The company said the improvement will expand CMP, high-purity solvents and process chemicals manufacturing, including U.S. manufacturing capacity by 30%.
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“We supply the whole chain of materials,” said Dr. Brian O’Donnelly, CEO of Fujifilm Electronic Materials USA, in an interview. Those products are used to make logic, memory and integrated circuits for electronics.
“All of this is driven by the digital society we’re in,” he added, noting that semiconductor revenues are about $550 billion a year, a number expected to reach $1 trillion by 2030. “That’s a lot more chips and a lot more electronic materials and raw materials.”
The global market for electronic materials is $48 billion with expected annual growth of 6%, according to Markets and Markets. Major players include Merck, Honeywell, BASF, Hitachi Chemical, and Sidley Chemical. Fujifilm claims it is the market share leader in many segments including CMP. The overall company has set a revenue target of $3.3 billion by 2030, up from $1.2 billion in 2021. It has plans to reach the higher target by becoming a one stop shop for materials.
Fujifilm Electronic Materials operates 11 sites globally, part of a global Fujifilm family with revenues of $21 billion and 73,000 workers.