Nissan Chemical Corporation

Nissan Chemical Corporation has approved the establishment of Nissan Chemical Semiconductor materials Zhangjiagang Co., Ltd. in Zhangjiagang City, Jiangsu Province, China, to manufacture and sell anti-reflective coatings and multilayer materials for semiconductors. The new subsidiary carries registered capital of RMB 210 million, or approximately ¥5.00 billion, with initial funding set for October 15, 2026. The move deepens Nissan Chemical's presence in China's semiconductor supply chain by placing production closer to key local customers and demand centers. The roughly ¥5.00 billion capacity build is a focused addition that supports existing guidance rather than reshaping it in the near term, though it tilts the risk mix toward China-specific factors such as local competition and policy or supply chain disruptions. The company's investment case continues to rest on turning specialty chemicals expertise into steady earnings and disciplined shareholder returns, supported by high returns on equity and an active dividend and buyback program.

Nissan Chemical Corp reported record first-quarter sales, operating profit, and ordinary profit, with sales rising 13% year-over-year to 89 billion yen, while raising its full-year dividend forecast to 162 yen per share. The Electronic Materials segment saw a 49% jump in sales, driven by strong demand for semiconductor materials including ARC and EUV materials, though the company noted higher fixed costs and a 29% downward revision in the segment's full-year operating profit forecast. In contrast, the Agricultural Chemicals segment experienced a significant downward revision of 1.6 billion yen in its full-year sales forecast, now expected to be 16 billion yen lower than initially planned, due to lower sales of fungicides and herbicides in overseas markets, particularly in Europe where unfavorable weather conditions reduced demand. The Display Materials segment saw a 4% decline in sales, while the pharmaceutical segment also reported lower sales and profits amid generic competition. The company is progressing on its medium-term plan targeting over 20% annual growth in the semiconductor materials business through 2030.