Quick Takeaways
- Sumitomo Bakelite Kyocera chemical business acquisition strengthens semiconductor and automotive heat management capabilities.
- The deal expands materials supply for automotive power modules and AI data center applications.
On January 22, Sumitomo Bakelite Co., Ltd. announced that it will acquire part of the Chemical Business from Kyocera Corporation, marking a strategic move to strengthen its semiconductor materials portfolio. The transaction aligns with rising demand from automotive power modules and AI data centers, where advanced heat management technologies are becoming increasingly critical.
Strategic Expansion of Heat Management Technologies
Through the Sumitomo Bakelite Kyocera chemical business acquisition, the company will gain semiconductor-related products and technologies, including high thermal conductivity solutions used in processors, memory, and power devices. These capabilities are expected to accelerate Sumitomo Bakelite’s expansion in thermal management applications supporting next-generation mobility and data infrastructure.
Semiconductor Materials and Manufacturing Assets Transfer
As part of the acquisition, Sumitomo Bakelite will succeed Kyocera’s manufacturing and sales operations for key chemical products, including:
These materials play a vital role in improving durability, performance, and heat resistance across semiconductor devices.
Production Footprint Strengthened Across Japan and China
The deal also includes the transfer of multiple production sites, reinforcing manufacturing capacity and supply stability. The acquired facilities include:
This expanded footprint supports closer alignment with automotive and electronics customers across key markets.
Acquisition Value and Completion Timeline
The acquisition amount is set at JPY 30 billion, with procedures scheduled for completion in October 2026. This timeline allows for operational integration while maintaining continuity for existing customers and product lines.
Management Perspective on Integration Synergies
At a press conference held on the same day, Sumitomo Bakelite’s President Shinichi Kajiya explained the purpose of the transaction, stating, “Through integration of both companies’ technologies, we will create synergies and expand our production capacity.” The integration is expected to enhance development speed, scale manufacturing, and strengthen competitiveness in high-growth semiconductor segments.
Strategic Expansion of Heat Management Technologies
Through the Sumitomo Bakelite Kyocera chemical business acquisition, the company will gain semiconductor-related products and technologies, including high thermal conductivity solutions used in processors, memory, and power devices. These capabilities are expected to accelerate Sumitomo Bakelite’s expansion in thermal management applications supporting next-generation mobility and data infrastructure.
Semiconductor Materials and Manufacturing Assets Transfer
As part of the acquisition, Sumitomo Bakelite will succeed Kyocera’s manufacturing and sales operations for key chemical products, including:
- Epoxy resin encapsulation materials for semiconductors
- Bonding pastes used in semiconductor assembly
- Industrial-use resins supporting various electronics applications
These materials play a vital role in improving durability, performance, and heat resistance across semiconductor devices.
Production Footprint Strengthened Across Japan and China
The deal also includes the transfer of multiple production sites, reinforcing manufacturing capacity and supply stability. The acquired facilities include:
- Koriyama Plant in Koriyama City, Fukushima Prefecture
- Moka Plant in Moka City, Tochigi Prefecture
- Kawasaki Plant in Kawasaki Ward, Kawasaki City
- Wuxi Plant in China
This expanded footprint supports closer alignment with automotive and electronics customers across key markets.
Acquisition Value and Completion Timeline
The acquisition amount is set at JPY 30 billion, with procedures scheduled for completion in October 2026. This timeline allows for operational integration while maintaining continuity for existing customers and product lines.
Management Perspective on Integration Synergies
At a press conference held on the same day, Sumitomo Bakelite’s President Shinichi Kajiya explained the purpose of the transaction, stating, “Through integration of both companies’ technologies, we will create synergies and expand our production capacity.” The integration is expected to enhance development speed, scale manufacturing, and strengthen competitiveness in high-growth semiconductor segments.
Company Press Release
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