FUJIFILM Holdings Corporation FUJIY has announced a ¥20 billion investment to bolster its semiconductor materials business in Japan. FUJIFILM Electronic Materials Co., Ltd., the core company leading Fujifilm’s semiconductor materials business, will upgrade and expand its facilities in Shizuoka and Oita to strengthen advanced semiconductor materials' quality control, development and production.

At the Shizuoka site, FUJIFILM Electronic Materials plans to invest approximately ¥13 billion to construct a new facility, expected to start operations in the fall of 2025. This new building will focus on improving the development, production and quality evaluation of advanced photoresists, such as those used in extreme ultraviolet lithography and WAVE CONTROL MOSAIC. With features like a clean room and cutting-edge inspection technology, the facility will expedite development, increase production capacity and boost quality evaluation processes.

At the Oita site, the company is investing around ¥7 billion to build a new facility. This involves acquiring land next to the current site. The new facility will add production equipment and inspection devices for post-chemical mechanical polishing (CMP) cleaners, crucial materials in semiconductor manufacturing. Scheduled to open in the spring of 2026, it will increase the site’s production capacity by about 40%.

Fujifilm Holdings Corp. Price and Consensus

Fujifilm Holdings Corp. price-consensus-chart | Fujifilm Holdings Corp. Quote

FUJIFILM supplies a comprehensive range of semiconductor materials essential for wafer processing and post-processing, including photoresists, photolithography-related materials, CMP slurries, post-CMP cleaners, thin-film chemicals, polyimides and WAVE CONTROL MOSAIC, which features color filter materials for image sensors. Post-CMP cleaners play a crucial role in homogeneously flattening semiconductor surfaces by effectively removing particles, metal fragments and organic residues after polishing with CMP slurry while protecting the metal surface.

With advancements in high-speed communications through 5G/6G, the expansion of autonomous driving, and the rise of artificial intelligence and the metaverse augmenting demand for semiconductors, the need for higher-quality materials has become critical. With the market for post-CMP cleaners projected to grow at an annual rate of 9%, the company is committed to ensuring a stable and rapid supply of these materials, highlighted FUJIFILM. By leveraging its expertise in integrated solutions with CMP slurry, it aims to enhance semiconductor performance and effectively address customer needs.

FUJIY’s Focus on Semiconductor Materials Business

FUJIFILM is investing in expanding facilities for the development, manufacture and quality assurance of cutting-edge semiconductor materials. In October 2023, it acquired a leading electronic chemicals business — Entegris Inc. — for $700 million. This acquisition boosted Electronic Materials revenues in the first quarter of fiscal 2024 to ¥62.3 billion, up 53.6% year over year. It will also help the company to expand its footprint in the semiconductor materials manufacturing market. 

FUJIFILM invested €30 million to further expand its semiconductor materials manufacturing capabilities in Europe in April 2023. These investments to enhance FUJIY’s semiconductor business are poised to drive its top line by tapping into the emerging semiconductor market and will propel the stock upward.

FUJIY’s Zacks Rank & Stock Price Performance

FUJIY currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 35.6% in the past year compared with the sub-industry's growth of 20.4%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Seagate Technology Holdings plc STX, OptimizeRx Corporation OPRX and SS&C Technologies Holdings, Inc.SSNC.  Both STX & OPRX presently sport a Zacks Rank #1 (Strong Buy), whereas SSNC carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Seagate Technology delivered an earnings surprise of 80.9%, on average, in three of the trailing four quarters. In the last reported quarter, STX pulled off an earnings surprise of 40%. The Zacks Consensus Estimate for its earnings has increased 18% to $7.41 in the past 60 days.

OptimizeRx delivered an earnings surprise of 159.5%, on average, in three of the trailing four quarters. In the last reported quarter, OPRX pulled off an earnings surprise of 128.6%. The Zacks Consensus Estimate for its earnings has increased 38.5% to 36 cents in the past 60 days.

SS&C Technologies Holdings delivered an earnings surprise of 3.1%, on average, in the trailing four quarters. In the last reported quarter, SSNC pulled off an earnings surprise of 4.9%. The Zacks Consensus Estimate for its earnings is pegged at $5.18.

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