Tokuyama to add aluminum nitride powder capacity with new Japanese plant

Tokuyama Corporation has decided to add a new aluminum nitride powder production facility at its Center for Commercialization of Advanced Technology in Yanai City, Yamaguchi Prefecture, Japan. The new plant will raise its production capacity by approximately 30% from current levels and will be its second aluminum nitride powder site after the Tokuyama Factory. Commercial operation is scheduled to begin in April 2028, under a business plan certified under Japan's Economic Security Promotion Act.

Key facts

Market context

Aluminum nitride powder is a ceramic material prized for combining electrical insulation with high thermal conductivity, which makes it useful as a filler in heat-dissipation materials and as a component in semiconductor manufacturing equipment, where heat must be removed quickly and reliably. Demand is shaped mainly by the electronics and semiconductor supply chain, including power devices, advanced packaging, and chip-making tools, and has been influenced by broader investment in data-center and AI-related hardware. Because aluminum nitride powder requires specialized synthesis and tight quality control, qualified suppliers are relatively few, so new capacity from an established producer can change availability and negotiating conditions for buyers over time. Additional output from a second site can also reduce reliance on a single factory, which matters for customers qualifying supply chains. Price effects depend on how quickly new volume reaches the market relative to demand growth.

Source: official release on tokuyama.co.jp. Summary and context written by Market Krystal.