Kyocera Doubles Semiconductor Outlay To $9.8B: Report

  • Kyocera Corp KYOCF KYOCY looked to expand its investment in semiconductors, increasing total capital investment and research and development expenditure to 1.3 trillion yen ($9.78 billion) over the three fiscal years through March 2026.
  • Kyocera doubled the amount spent during the previous three years to March 2023, Nikkei Asia reports citing President Hideo Tanimoto.
  • Kyocera will also fundraise by pledging its KDDI shares as collateral for the first time while borrowing up to 1 trillion yen.
  • Also Read: Chipmakers Struggle With Inventory Buildup On Pandemic Demand Correction
  • Kyocera eyed aggressive investments in areas including ceramic components betting on near-term chip market expansion.
  • Kyocera eyed up to 900 billion yen in capex, double the amount over the past three years, and plans to spend 400 billion yen on R&D, up by 60%.
  • In Kagoshima prefecture in southern Japan, Kyocera invested 60 billion yen to construct a new semiconductor package production facility.
  • In Nagasaki, Kyocera constructed its first new domestic plant in about 20 years since the start of operations at its Ayabe factory in Kyoto. 
  • Tanimoto said Kyocera earmarked up to 100 billion yen to produce ceramic components and semiconductor packaging, with the new plant set to begin operating in 2026.
  • The area bears proximity with other chip plants like Sony Group Corp SONY, an expressway interchange, and other transportation infrastructure.
  • In Vietnam, Kyocera expanded factories producing multifunctional machines and quartz components.
  • The report added that Kyocera would borrow from banks partly by using its KDDI Corp KDDIY KDDIF shareholdings as collateral.
  • Kyocera holds 15% of KDDI's issued shares with a market value of 1.35 trillion yen.
  • Depending on semiconductor market conditions, Kyocera may carry out up to 1 trillion yen in future collateralized borrowing.
  • Price Action: SONY shares traded lower by 0.22% at $76.77 in the premarket on the last check Tuesday.
  • Photo Via Company
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