EBARA Corporation has entered into a fixed-term building lease agreement with SHINKO ELECTRIC INDUSTRIES CO., LTD. to lease a portion of Building J1 at the Mobara Plant in Chiba Prefecture, including cleanroom and other production facilities, for use as a new production site for its Precision Machinery Segment.

Securing Semiconductor Production Capacity Through New Lease Agreement

The agreement was executed on November 13, 2026, with the lease scheduled to commence on April 1, 2027, and operations planned to start during FY2027, phased in sequentially.

The property is part of the facility that Shinko Electric is scheduled to acquire from Japan Display Inc. at the end of March 2027.

EBARA stated that through the agreement it has secured stable production capacity to support anticipated medium- to long-term growth in demand within the semiconductor market.

Background: AI-Driven Semiconductor Demand

According to EBARA, the rapid adoption of AI technologies and expanding data center investment worldwide are expected to drive significant medium- to long-term growth in the semiconductor market, particularly in AI-related applications.

Alongside this growth, demand is increasing rapidly for products provided by EBARA's Precision Machinery Segment that are essential to the production of advanced logic and memory semiconductors and other leading-edge devices.

These products include CMP systems, plating systems, bevel polishing systems, dry vacuum pumps, gas abatement systems, ozonized water generators, and vacuum exhaust systems for EUV lithography equipment.

Expanding Production Capacity

EBARA's Precision Machinery Segment has steadily expanded production capacity and improved efficiency at its core sites, including the Kumamoto and Fujisawa districts.

Alongside these ongoing investments, the company said it has continued to explore options for further capacity expansion to support medium- to long-term growth in semiconductor demand.

As part of these efforts, EBARA decided to lease a portion of Building J1 at JDI's Mobara Plant, which the company said features a large-scale, high-specification cleanroom and can be brought into operation within a relatively short time frame.

The property will enable EBARA to meet near-term demand growth, enhance business continuity through a more diversified production footprint, and maintain a stable supply of products to customers worldwide. EBARA said these advantages made the property the optimal choice for strengthening its production capabilities.

Combined with capacity expansions at existing facilities, the lease agreement is expected to increase production capacity to up to 2.5 times the level of FY2026.

The new site will allow EBARA to respond flexibly and with sufficient capacity to growing semiconductor demand while supporting the continued growth of the Precision Machinery Segment, the company said.

Details of the Leased Property

The leased property is Building J1 at the Mobara Plant of Japan Display Inc., located at 3480-1, Aza Ichichomedai, Hayano, Mobara-shi, Chiba, Japan, among other addresses.

The leased area is a portion of Building J1, including cleanroom facilities; the gross floor area was not disclosed. The intended use is a production site for semiconductor manufacturing equipment and related operations.

The lease term is 12 years from the handover date, with the scheduled handover date set for April 1, 2027. The property is scheduled to be transferred from JDI to Shinko Electric at the end of March 2027.

About the Lessor

The lessor, SHINKO ELECTRIC INDUSTRIES CO., LTD., is headquartered at 80 Oshimada-machi, Nagano-shi, Nagano, Japan.

The company's business activities include the manufacturing and sales of plastic laminated packages (PLPs), leadframes, glass-to-metal seals, heat spreaders, ceramic electrostatic chucks, and IC assembly.

Schedule and Financial Outlook

The lease agreement was executed on November 13, 2026. The transfer of the property from JDI to Shinko Electric is scheduled for the end of March 2027, with the lease commencing April 1, 2027, and operations planned to begin during FY2027, phased in sequentially.

EBARA stated that the impact of the lease agreement on its consolidated financial results for the current fiscal year is not expected to be material. The company said it will promptly disclose any material developments requiring announcement in the future.

Guided by its long-term vision and medium-term management plan, the EBARA Group aims to provide solutions to global sustainability challenges to contribute to the creation of a sustainable society and to further enhance corporate value.

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