Japanese conglomerate Kyocera Corporation will spin off its chemical business into a newly established subsidiary, which will be sold in full to Japanese chemicals company Sumitomo Bakelite Co., Ltd.

The transaction, through an absorption-type company split and a share transfer agreement, will approximately cost ¥30 billion, subject to final price adjustment based on the share purchase agreement. The transaction is targeted for completion in October 2026.

Background of Transaction

Kyocera received a proposal from Sumitomo Bakelite, which is strengthening its chemical business, to acquire the target business, and has been in discussions with the company. Kyocera has decided to proceed with the transaction with Sumitomo Bakelite, judging that it will lead to further growth and development of the target business and increase its business value.

Accordingly, Sumitomo Bakelite’s medium-term business plan 2024 to 2026 aims to promote the transformation of business portfolio and expand business. By acquiring Kyocera’s new chemical business, it aims to further enhance the presence in the ICT domain and accelerate tech capabilities to create high value-added products.

Kyocera’s new chemical business includes epoxy resin molding compounds for encapsulation of semiconductor devices, bonding pastes for semiconductor devices, and resins for industrial use.

22 January 2026