Japan's semiconductor materials maker, Shin-Etsu Chemical has announced it's going to invest about 83 billion yen, or nearly 550 million dollars, in a new plant.
It is part of moves by Japan to strengthen the country's chip supply chain.
Shin-Etsu produces lithography materials including photoresists used in making semiconductor circuits.
The new plant will be in Gunma Prefecture, north of Tokyo. The company hopes to start operations by 2026 with plans to expand the facility in the future.
Another semiconductor material related company Mitsubishi Chemical Group has been studying a proposal to expand production of components for photoresists at its plant in the country.
Mitsui Chemicals is also considering increasing production of materials used in the semiconductor making process at its domestic plant.