Fujifilm expands key chip material output to capture AI demand

Fujifilm Holdings is expanding production of crucial materials used in advanced semiconductor manufacturing to take advantage of the soaring demand. The prevalence of data centers for artificial intelligence has caused bottlenecks and shortages throughout the supply chain, propelling the company to growth even more than its primary products of cameras and office copiers.

The Japanese firm recently inaugurated a new fabrication facility in Oita Prefecture, which will help it triple production of post-chemical-mechanical polishing (CMP) cleaners. These cleaners are necessary for eliminating particles and residues from wafers after the polishing process. Fujifilm invested ¥7 billion ($44 million) into the expansion after projecting rapid growth in the market.

Semiconductors represent the most promising growth segment for Fujifilm's business, which has been impacted by stagnation in office equipment sales. The company's shares experienced their worst decline on record last month following disappointing earnings. Fujifilm has been expanding its cutting-edge product development and output capacity for various semiconductor materials, including CMP slurries, post-CMP cleaners, photoresists, and polyimides.

This investment is part of a broader strategy to establish semiconductor manufacturing materials and biopharmaceuticals as the core businesses at Fujifilm. The company is also contemplating spinning off its struggling legacy office equipment division, which currently accounts for 35% of the group's overall revenue. Fujifilm aims to position itself as a supplier across more stages of the chipmaking process, including materials for lithography and advanced packaging.

The company has created AI-driven tools that enable engineers to identify new chemical formulas in a matter of months, reducing the previously necessary years of research.