Panasonic Industry to Invest Approx. 92 Billion Yen in AI-related Business to Accelerate Growth

Expanding production capacity for multi-layer circuit board materials and conductive polymer electrolytic capacitors, while also constructing new R&D facility for next-generation materials for semiconductor packaging

Tokyo, Japan – 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 package substrate materials, encapsulation materials, and other materials for semiconductor applications.
*2 Businesses with core competencies in materials development and manufacturing process technologies. Panasonic Industry is concentrating its portfolio on these businesses, enabling it to achieve a differentiated and profitable business.

[Details]

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.

[About new building (Phase II) at Panasonic Industrial Devices Materials (Suzhou) Co., Ltd.]

image: New building (Phase II) at Panasonic Industrial Devices Materials (Suzhou) Co., Ltd.

Plant/new line	On the premises of Panasonic Industrial Devices Materials (Suzhou) Co., Ltd.
Location	No. 288, Jianlin Road, Huqiu District, Suzhou, Jiangsu Province, China
Products manufactured	Circuit board materials
Total floor area	Approx. 46,000 square meters (including shared areas with the new plant (Phase I))
Commencement of operations	August 2028 (scheduled)
Highlight	As with the new plant (Phase I), this building will feature advanced automated processes to enhance safety and keep up with increasingly sophisticated customer needs. It also aims to enable environmentally friendly manufacturing by introducing energy-saving schemes, energy recovery systems, and high-efficiency equipment.

[About new building (Phase II) at Panasonic Manufacturing Ayutthaya Co., Ltd.]

image: New building (Phase II) at Panasonic Manufacturing Ayutthaya Co., Ltd.

Plant/new line	On the premises of Panasonic Manufacturing Ayutthaya Co., Ltd.
Location	Rojana Industrial Park 1/69 Moo 5, Rojana Road, Tambol Kanham Amphur Uthai, Ayutthaya, Thailand, 13210
Products manufactured	Circuit board materials
Total floor area	Approx. 36,000 square meters
Commencement of operations	April 2029 (scheduled)
Highlight	Like the plant (Phase I), which aims for operations (in November 2027) under the concept of “Slim & Smart Factory,” this building also aims for cutting-edge factory operations by maximizing automation, labor-saving technologies, digital transformation, and energy-saving technologies. The facility will also actively work on protecting the environment by optimizing energy efficiency in manufacturing processes and making effective use of waste heat.

[About Panasonic Industrial Devices Materials (Suzhou) Co., Ltd.]

- Established: January 1994
- Main businesses: Manufacturing and distributing circuit board materials

[About Panasonic Manufacturing Ayutthaya Co., Ltd.]

- Established: September 1994
- Main businesses: Manufacturing and distributing plastic molding compounds, semiconductor encapsulants, and circuit board materials

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.

[About new building at PT. Panasonic Industrial Devices Batam]

image: New building at PT. Panasonic Industrial Devices Batam

Plant/new line	On the premises of PT. Panasonic Industrial Devices Batam
Location	Puri Industrial Park 2000 Batam Centre, Batam, Indonesia
Products manufactured	Conductive polymer aluminum electrolytic capacitors
Total floor area	Approx. 50,000 square meters
Commencement of operations	April 2029 (scheduled)
Highlight	It is one of the Company’s key production sites located on Batam Island, Indonesia. Leveraging highly efficient manufacturing and low-cost operations, the site is responsible for manufacturing SP-Cap and supports the supply of products to meet growing global demand, including in the rapidly expanding AI-related market.

[About PT. Panasonic Industrial Devices Batam]

- Established: October 1995
- Main businesses: Manufacturing and distributing conductive polymer capacitors, inductors, and resistors

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.

4. About the investment

Location	Products	Details	Amount
Suzhou, China	MEGTRON multi-layer circuit board materials	Constructing new building (Phase II) and strengthening production	Approx. 30 billion yen
Ayutthaya, Thailand	MEGTRON multi-layer circuit board materials	Constructing new building (Phase II) and strengthening production	Approx. 37 billion yen
Uji, Japan/ Batam, Indonesia	SP-Cap conductive polymer aluminum electrolytic capacitors	Constructing new building and strengthening production at Batam	Approx. 17 billion yen
Yokkaichi South, Japan	Next-generation materials for semiconductor packaging	Constructing R&D building	Approx. 8 billion yen
Total			Approx. 92 billion yen

＜Reference＞

[About MEGTRON high-performance multi-layer circuit board materials]

Panasonic Industry’s MEGTRON high-performance multi-layer circuit board materials deliver industry-leading low-transmission-loss performance. They support high-speed, high-capacity data transmission across a wide range of applications, including high-speed communication network equipment such as switches, routers, supercomputers, and base stations, as well as automotive and aerospace sectors. In recent years, they have also been adopted for next-generation information and communications infrastructure equipment such as AI servers. Of particular note, MEGTRON6 (mass production started in 2004), a pioneering low-transmission-loss multi-layer circuit board material adopted in high-end servers, was awarded the 46th Ichimura Prize in Industry for Excellent Achievement from the New Technology Development Foundation in April 2014, and the 62nd Okochi Memorial Production Award from the Okochi Memorial Foundation in March 2016.

*MEGTRON is a registered trademark of Panasonic Holdings Corporation.

[About SP-Cap conductive polymer capacitors]

SP-Cap is a solid electrolytic capacitor that uses a conductive polymer as its electrolyte. Leveraging its low ESR (equivalent series resistance), small size, and high capacitance, it contributes to stable power supply for the power circuits in increasingly sophisticated electronic devices. In recent years, it has been widely adopted in power circuits for GPUs and other components in AI servers for its reliability under high-temperature conditions. In 2021, SP-Cap was awarded the 68th Okochi Memorial Production Award (special prize) from the Okochi Memorial Foundation.

*SP-Cap is a registered trademark of Panasonic Holdings Corporation.

＜Related links＞

About us - Electronic Materials - Panasonic
https://industrial.panasonic.com/ww/electronic-materials/business

Conductive Polymer Electrolytic Capacitors - Panasonic
https://industrial.panasonic.com/ww/products/capacitors/polymer-capacitors

Panasonic Industry - Panasonic
https://www.panasonic.com/global/industry/

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/.

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