Panasonic Industry Announces Major AI Investment of 92 Billion Yen to Accelerate Business Expansion
Panasonic Industry Co., Ltd. is actively investing in AI-related businesses to support the growing demand in the generative AI market. The Company will expand its production capacity for MEGTRON high-performance multi-layer circuit board materials and SP-Cap conductive polymer aluminum electrolytic capacitors—materials used in AI servers and other data center equipment—at multiple production sites both in Japan and overseas. The Company will also strengthen its R&D capabilities for next-generation materials for semiconductor packaging*1, enhancing its supply capacity to meet growing demand while advancing technological development to drive competitiveness over the medium to long term.
Panasonic Industry is an operating company within the Panasonic Group. With a mission, “We will open the way to a better future and continue to contribute to an affluent society through a variety of device technologies,” the Company provides a wide range of electronic components and materials for automotive applications, information and communications infrastructure, and many other sectors. Positioning this year as the first year of the growth phase, the company is accelerating its shift toward value-added “Materials and Processes Businesses*2,” where it can leverage its unique strengths, while also stepping up its focus on AI-related areas.
To respond to these circumstances and support the rapidly growing AI demand, the Company will invest a total of approximately 67 billion yen to expand production capacity for MEGTRON high-performance multi-layer circuit board materials, which support high-speed, high-capacity communications of AI servers, at its plants in Suzhou, China and Ayutthaya, Thailand. The Company will also invest a total of approximately 17 billion yen in its plants in Uji, Kyoto and Batam, Indonesia, to increase production capacity for SP-Cap conductive polymer aluminum electrolytic capacitors, which help ensure stable power supply for GPU power circuits in AI servers. In addition, the Company will invest approximately 8 billion yen in its plant in Yokkaichi South, Mie, to build a new R&D facility, with the aim of strengthening R&D for next-generation materials for semiconductor packaging that will support future semiconductor technologies. Panasonic Industry will continue to contribute to the advancement of AI technology and the development of a sustainable society through devices and materials that combine its distinctive materials and process technologies.
1. Strengthening global production of MEGTRON multi-layer circuit board materials
Panasonic Industry will invest a total of approximately 67 billion yen in Panasonic Industrial Devices Materials (Suzhou) Co., Ltd. in Suzhou, China, and Panasonic Manufacturing Ayutthaya Co., Ltd. in Ayutthaya, Thailand, to expand production capacity for its MEGTRON high-performance multi-layer circuit board materials to meet the growing demand.
At the Suzhou plant, in addition to the new plant (Phase I), which is scheduled to begin mass production in December 2026, the Company will invest approximately 30 billion yen to construct a new building (Phase II), which is scheduled to commence operations in August 2028. At the Ayutthaya plant, in addition to the new plant (Phase I) scheduled to commence operations in November 2027, the Company will invest approximately 37 billion yen to construct a new building (Phase II), which is scheduled to commence operations in April 2029.
Production capacity will be expanded at the Suzhou and Ayutthaya plants, which serve as manufacturing hubs for the circuit board market in China and Southeast Asia, respectively. This investment will help establish an optimal production system across five manufacturing sites worldwide (Koriyama, Suzhou, Guangzhou, Taiwan, and Ayutthaya), aligned with local demand trends for high-performance multi-layer circuit board materials, thereby ensuring a more stable supply for customers.
2. Strengthening the production base for SP-Cap conductive polymer aluminum electrolytic capacitors
Panasonic Industry will invest approximately 17 billion yen in the Uji plant in Kyoto and PT. Panasonic Industrial Devices Batam in Batam, Indonesia, the manufacturing sites for SP-Cap conductive polymer aluminum electrolytic capacitors, to meet growing medium- to long-term demand as they are increasingly adopted in power circuits for GPUs and other components in AI servers.
At the Batam plant, a new five-story manufacturing building with a total floor area of approximately 50,000 square meters is planned. The facility will expand production capacity for SP-Cap while also serving as a strategic manufacturing hub that supports the future growth of the device business. Construction is scheduled to begin in May 2027, with operations expected to commence in April 2029.
3. Constructing new R&D building for next-generation materials for semiconductor packaging at Yokkaichi
Panasonic Industry will construct a new R&D building for next-generation materials for semiconductor packaging at Yokkaichi South Factory in Yokkaichi, Mie. As computing performance advances, semiconductor chips for AI servers are becoming larger, and the chiplet architectures are being increasingly adopted. The new R&D building will strengthen the company’s capabilities for developing, prototyping, and evaluating materials used in next-generation semiconductor packaging. By consolidating capabilities in materials design, processes, and evaluation/analytics, the Company will shorten the time from development to evaluation, deepen collaboration with customers, and accelerate R&D of next-generation materials for semiconductor packaging.
About Panasonic Industry Co., Ltd.
Panasonic Industry Co., Ltd. is an operating company in charge of the device business within the Panasonic Group. The mission of the company states that “We will open the way to a better future and continue to contribute to an affluent society through a variety of device technologies.” On a global basis, the company has achieved net sales of 1,167.3 billion yen for the fiscal year ended March 31, 2026. Against this background of the explosion of data with the rise of the information-based society, and greater demands for the environment and safety for the mobility society, a labor shortage in manufacturing, the company will focus on areas where ongoing evolution is required and continue to provide customer value with distinctive features of unique material and process technologies such as capacitors, EV relays, and electronic materials. Learn more about Panasonic Industry at https://www.panasonic.com/global/industry/.
