Kyocera will expand its investment in semiconductor-related fields and electronic components. In the three years from fiscal year 2023 (as of March 2024), the total amount of equipment investment and R&D expenses will reach 1.3 trillion yen, which is the highest in the three years ending in fiscal year 2022 (as of March 2023). about twice. For the first time, Kyocera will use its KDDI shares as collateral to implement financing, and it is envisaged to borrow funds up to 1 trillion yen. Although Kyocera has previously advocated debt-free management, this time the company believes that the semiconductor-related market will expand in the medium term, so it intends to switch to a business policy that actively invests in ceramic components.
Starting from fiscal year 2023, a maximum of 900 billion yen will be invested in equipment within 3 years, and a maximum of 400 billion yen will be invested in research and development expenses. Compared with the three years ending in fiscal year 2022, equipment investment will approximately double, and research and development expenses will increase by 60%.
The investment funds will be used to increase production of ceramic parts for semiconductor manufacturing equipment, which Kyocera has a 70% global share in, and advanced semiconductor packaging parts used in fields related to artificial intelligence (AI), and to develop new products. The semiconductor market was in short supply under the COVID-19 pandemic. Although it is currently in a state of adjustment, Kyocera believes that "by 2030, the market size will double" (President Tanimoto), so it intends to continue to make active investments.
Kyocera will use KDDI shares as collateral to obtain part of the investment funds from bank loans. Kyocera founder Kazuo Inamori founded the Second Denden (now KDDI) in 1984, so Kyocera holds 15% of KDDI's outstanding shares, giving it a market capitalization of about 1.35 trillion yen. The company had never pledged KDDI stock before.
