HORIBA STEC to Build New Factory in Kyoto, Japan

HORIBA STEC, Co., Ltd., a group company of the HORIBA Group leading the semiconductor business, announced its plan to build a new factory in Fukuchiyama City, Kyoto Prefecture. Specifically, the new factory will manufacture HORIBA Semiconductor’s mainstay products, such as mass flow controllers and chemical concentration monitors. Land has been acquired at Annex Kyoto Miwa of Osadano Industrial Complex, where HORIBA’s R&D base, Kyoto Fukuchiyama Technology Center, is also located. Construction will begin in July 2024 and is set for completion in January 2026.

Artist rendering of the new plant (Exterior view)
Artist rendering of the new plant (Aerial view)

The HORIBA Group’s semiconductor business has achieved steady growth in the past several years. It reached the targets for net sales and operating profit set out in the MLMAP2023*1 two years ahead of schedule. HORIBA STEC holds holds approximately 60%*2 share of the global market for mass flow controllers (MFC), the driver behind that growth. It has been increasing production at its Aso factory (Kyushu in Japan) and strengthening its overseas production framework.

HORIBA STEC has seen the need to further strengthen its production framework. Thus, it leads to the decision to build the new factory.  Among other factors considered were the expected further growth of the semiconductor market over the medium to long term, fulfillment of its supply responsibilities as a leading MFC company in that market, and responding to all manner of future measurement demand.

Largest Investment for HORIBA Group

Mainly, the new factory will feature an extensive production area that can accommodate a wide range of applications. HORIBA Group invested around 17 billion yen, the largest for HORIBA Group to date, to build the new factory.

Specifically, it will act as the core factory for mass-production technologies to promote automation and efficiency improvements with state-of-the-art equipment. Accordingly, this will increase the company’s MFC production capacity in Japan by up to approximately three times its current level (Kyoto and Aso factories). Also, the new facility will produce chemical concentration monitors, which are another core product of the semiconductor business. Moreover, plans for the production of products and systems related to the semiconductor business and other businesses’ products are also in place. This project aims to establish long-term, stable supply structures in all directions.

In addition, through collaborations with the neighboring R&D base, Kyoto Fukuchiyama Technology Center, the new factory will engage in synergies for the early implementation of cutting-edge technologies.

Features of the New Factory

(1) Establishment of a long-term, stable supply structure

In addition to the semiconductor business-driving MFCs and chemical concentration monitors, it will also take on a wide range of production. This includes print substrates used in HORIBA STEC’s own products, products and systems related to the semiconductor business, and other businesses’ products.

  • It will promote automation and efficiency improvements with an automated MFC production line and the introduction of delivery robots to link different processes.
  • It will have a production area of approximately 10,000m², giving it the flexibility to accommodate long-term expansion of demand. The state-of-the-art equipment and the extensive production area will enable the expansion of MFC production capacity in Japan by up to approximately three times the current level (Kyoto and Aso factories).
  • It will aim to achieve energy savings across the entire factory, including the installation of a renewable energy system that uses power generated from hydrogen, as an initiative to reduce environmental footprint.

(2) Product performance improvement and acceleration of development cycle through synergies with cutting-edge technologies

  • Finally, taking advantage of its location adjacent to the R&D base, the Kyoto Fukuchiyama Technology Center (expansion decision made in September 2023; new wing scheduled for completion in April 2025), it will engage in the R&D of flow standards technology being pursued by the Center. Also, it will engage in synergies for the early implementation of the outcomes of industry-academic collaborations. Additionally, it will promote the improvement of existing products’ performance and the acceleration of the new product development cycle.

*1 MLMAP (Mid-Long term Management Plan)
The HORIBA Group uses the term MLMAP for its medium-to long-term management plan.
*2 According to research by HORIBA Ltd. (as of December 2023)