Japan’s Kyocera plans to invest more in expanding its chip production in the coming years. This was reported by Japanese media. The investments are to be financed by loans backed by shares in a Japanese telecom group.
According to Japanese media, the tech conglomerate is going to invest more in processor production and other related activities in the next three fiscal years until 2026. Kyocera plans to double investments to a total of 1.3 trillion Japanese Yen ($9.78 billion or 9.2 billion euros). It is also investing in R&D.
Kyocera is relatively unknown for its processor business. The company is better known for its rugged smartphones, tablets and, of course, its office equipment like copiers. However, the tech giant is also a major supplier of ceramic components and packaging technology for manufacturing processors.
Part of the expansion of chip production includes the construction of a new factory in Nagasaki. The factory, scheduled to be operational in 2026, will be 1.6 square meters in size and should employ 1,000 workers. At the plant, Kyocera will make the ceramic components and packaging for processors.
Financial coverage through shares
The expansion envisioned by the tech group is to be financed through a $7.5 billion loan. This loan is to be covered by Kyocera’s equity stake in Japanese telecom operator KDDI. The tech group has a 15 percent stake in this operator. In this way, Kyocera hopes to remain debt-free while being able to invest in scaling up its chip production.