NGK Insulators is expanding its Arizona-based operations as semiconductor manufacturers continue to invest in U.S. production.
The Japan-based company said it will invest about $56 million to expand FM Industries, its Phoenix subsidiary that produces precision components used in semiconductor manufacturing equipment. The expansion is expected to increase production capacity by roughly 20%, with manufacturing scheduled to begin in January 2027.
FM Industries supplies high-precision metal and ceramic components that operate inside chipmaking tools, where reliability and tight tolerances are critical. The company uses advanced metal machining and thermal spraying techniques to produce parts designed to withstand extreme temperatures and operating conditions.
The investment builds on a 2023 purchase of a Phoenix site spanning more than 30,000 square meters, including a manufacturing building of about 10,000 square meters. NGK said the latest funding will be used to install new equipment and upgrade the facility to support higher output.
While new fabrication plants often draw the most attention, suppliers like FM Industries play a central role in semiconductor manufacturing. Equipment makers and their suppliers are under pressure to deliver components faster and closer to where production occurs as U.S. fabs expand. Local sourcing has become a priority as companies look to reduce lead times and limit supply chain disruptions.
NGK already manufactures ceramic components for semiconductor equipment in Japan, but the Arizona expansion reflects rising demand from North American customers, including those supporting advanced computing and artificial intelligence applications.
The Phoenix facility is expected to employ about 150 people once fully operational.
