Mar. 22, 2023 /SemiMedia/ -- According to Nikkei Asia, Japanese semiconductor equipment maker Tokyo Electronics said it will spend about $167 million to build production facilities in northeastern Japan to meet new demand from the semiconductor industry.

The report pointed out that the new factory will be located in Oshu, which will be Tokyo Electron's seventh production plant in Oshu. Sadao Sasaki, president of Tokyo Electron Technology Solutions, said the sixth factory, which was commissioned in 2020, is currently in full production.

When completed in the fall of 2025, the factory will employ 900 people in production, including 450 from partner companies, expanding the company's semiconductor manufacturing equipment capacity by 50%.

The semiconductor market is currently undergoing a correction, but the rise of layered semiconductors has led to the development of wafer deposition processes and more advances in production technology.

"Growth continues and we expect higher demand in fiscal 2024," Sasaki said.