Fujifilm Holdings is expanding its production capacity for critical materials used in advanced semiconductor manufacturing to meet rising global demand driven by the growth of artificial intelligence data centers. The Tokyo-based company recently opened a new fabrication facility at its Oita Prefecture plant to triple output of post-chemical mechanical polishing (CMP) cleaners, which are used to remove particles and residues from wafers after polishing.

The company invested approximately ¥7 billion ($44 million) in the expansion, anticipating rapid growth in the semiconductor materials market. This move comes as Fujifilm seeks to diversify beyond its traditional camera and office equipment businesses, both of which have faced stagnation. Last month, the firm experienced its largest recorded stock decline following earnings that fell short of expectations.

Fujifilm has been intensifying development and production across a broad range of semiconductor materials, including CMP slurries, post-CMP cleaners, photoresists, and polyimides. Its expertise in industrial chemicals, refined through other sectors, is being adapted to meet the precision demands of semiconductor fabrication. The company reported a 25% increase in revenue from its semiconductor materials segment in the April to June quarter compared to the same period last year.

The expansion is part of Fujifilm's strategic shift to establish semiconductor manufacturing materials and biopharmaceuticals as core business areas. In line with this focus, the company is considering spinning off its legacy office equipment division, which currently accounts for around 35% of its total revenue. Fujifilm has stated that making the office equipment unit a separate listed company would enable more agile investment decisions in its emerging growth businesses.

Additionally, Fujifilm aims to broaden its role as a supplier across the semiconductor production process, targeting materials for lithography and advanced packaging. The company has also integrated artificial intelligence tools into its research and development processes, allowing engineers to identify new chemical formulations within months, significantly reducing the time previously required.