Panasonic Industry Co., Ltd. announced on October 30, 2026 that it will invest approximately USD 580 million in AI-related businesses to support growing demand in the generative AI market.

Expansion of AI server materials production and R&D

The investment spans three areas: expansion of production capacity for MEGTRON high-performance multi-layer circuit board materials, increased capacity for SP-Cap conductive polymer aluminum electrolytic capacitors, and construction of a new R&D facility for next-generation semiconductor packaging materials.

These materials are used in AI servers and other data center equipment.

Panasonic accelerates shift toward AI-related businesses

The announcement positions this year as the first year of the growth phase for the company, which is accelerating its shift toward value-added "Materials and Processes Businesses" while stepping up its focus on AI-related areas.

Panasonic Industry, an operating company within the Panasonic Group, provides a wide range of electronic components and materials for automotive applications, information and communications infrastructure, and other sectors.

USD 420 million for MEGTRON circuit board materials

The largest share of the investment, approximately USD 420 million, will go toward expanding production capacity for MEGTRON high-performance multi-layer circuit board materials, which support high-speed, high-capacity communications of AI servers.

The funds will be deployed at Panasonic Industrial Devices Materials (Suzhou) Co., Ltd. in Suzhou, China, and Panasonic Manufacturing Ayutthaya Co., Ltd. in Ayutthaya, Thailand.

USD 190 million in Suzhou circuit board materials plant

At the Suzhou plant, in addition to a new plant (Phase I) scheduled to begin mass production in December 2026, the company will invest approximately USD 190 million to construct a new building (Phase II), scheduled to commence operations in August 2028.

The Phase II building, located at No. 288, Jianlin Road, Huqiu District, Suzhou, Jiangsu Province, will manufacture circuit board materials across a total floor area of approximately 46,000 square meters, including shared areas with the Phase I plant.

Like Phase I, the new building will feature advanced automated processes to enhance safety and keep up with increasingly sophisticated customer needs and aims to enable environmentally friendly manufacturing through energy-saving schemes, energy recovery systems, and high-efficiency equipment.

USD 230 million in Thailand circuit board plant expansion

At the Ayutthaya plant, in addition to a new plant (Phase I) scheduled to commence operations in November 2027, the company will invest approximately USD 230 million to construct a new building (Phase II), scheduled to commence operations in April 2029.

The Ayutthaya facility is located at Rojana Industrial Park 1/69 Moo 5, Rojana Road, Tambol Kanham Amphur Uthai, Ayutthaya, Thailand.

Suzhou and Ayutthaya serve as manufacturing hubs for the circuit board market in China and Southeast Asia, respectively.

The expansion will help establish an optimal production system across five manufacturing sites worldwide: Koriyama, Suzhou, Guangzhou, Taiwan, and Ayutthaya, aligned with local demand trends for high-performance multi-layer circuit board materials and ensuring a more stable supply for customers.

USD 110 million for SP-Cap capacitors

Panasonic Industry will also invest a total of approximately USD 110 million in its plants in Uji, Kyoto, and Batam, Indonesia, to increase production capacity for SP-Cap conductive polymer aluminum electrolytic capacitors.

These components help ensure stable power supply for GPU power circuits in AI servers.

USD 50 million for new semiconductor packaging R&D facility

The remaining investment, approximately USD 50 million, will fund construction of a new R&D facility at the company's plant in Yokkaichi South, Mie. The facility aims to strengthen R&D for next-generation materials for semiconductor packaging that will support future semiconductor technologies.

Semiconductor packaging materials include package substrate materials, encapsulation materials, and other materials for semiconductor applications.

Medium- to long-term competitiveness strategy

Through these investments, Panasonic Industry intends to enhance its supply capacity to meet growing demand while advancing technological development to drive competitiveness over the medium to long term.

The company states it will continue to contribute to the advancement of AI technology and the development of a sustainable society through devices and materials that combine its distinctive materials and process technologies.

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