JX Metals plans to expand investment as chip demand surges
JX Advanced Metals Corp. is planning to invest more in materials for chips and information technology as demand for semiconductors surges.
The company is planning to spend about ¥100 billion ($623 million) per year on all of its business segments, President Yoichi Hayashi said, adding that the focus will be on chip-related businesses. It has averaged ¥90 billion annually over the last three years.
JX is among the beneficiaries of the rapid build out of AI data centers and its customers include global chipmakers like Taiwan Semiconductor Manufacturing Co., SK Hynix Inc. and Intel Corp. That’s prompting it to shift to chip and information technology materials from its traditional copper smelting business
“I don’t think we should just expand investments indiscriminately, but it would be wrong to hesitate to invest when there’s a clear opportunity,” Hayashi said in an interview. “I believe this is a time when we need to take on a certain amount of risk.”
JX raised its operating profit forecast for the fiscal year ending March 31 by 20% due to greater-than-expected demand. One of its products, a thin film material called indium phosphide which is used in data centers, is seeing strong sales and the company said it will make additional investments to expand capacity.
The company is negotiating with its customers to raise prices for its products given tight supply and demand, Hayashi said. The range differs on products, he added, without giving specifics.
The president doesn’t see significant impact on operations from the war in the Middle East, though the company is monitoring the situation, he added.
JX aims to achieve ¥200 billion of operating profit in its growth-oriented units, including the chip material business, by the fiscal year ending March 2040. That compares with about ¥52 billion in the most recent fiscal year.
(By Yasutaka Tamura)
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