August 27, 2025 /SemiMedia/ — Nikon said it will close its Yokohama semiconductor plant on September 30, 2025, and transfer operations to other facilities, in a move seen as a symbolic shift in the company’s semiconductor strategy. The closure is expected to have little impact on earnings for the fiscal year.

Founded in 1967, the Yokohama site played a central role in Nikon’s precision equipment business and was known for producing Japan’s first stepper lithography machine, the NSR-1010G, in 1980. For decades, the plant manufactured precision optical tools used in semiconductor and display production.

Nikon has faced prolonged challenges from weak demand in chips and displays, a stagnant domestic economy, demographic shifts, and global trade frictions. Revenue at its precision equipment unit is projected to fall 8.4% in fiscal 2025 to 185 billion yen ($1.24 billion), marking the first drop below 200 billion yen in years.

The company is pivoting toward growth segments such as healthcare, advanced optics and digital manufacturing, including 3D printing. In semiconductors, Nikon is emphasizing applications in packaging, test lithography systems and inspection tools, signaling a gradual shift away from reliance on traditional exposure equipment.

The future use of the Yokohama site has not been disclosed, but analysts view the move as a turning point in Nikon’s efforts to realign with evolving market trends in the semiconductor industry.