Sumitomo Bakelite to acquire Kyocera chemical business, enhancing semiconductor materials portfolio and strengthening technological capabilities for ICT markets.
Sumitomo Bakelite Co., a leading Tokyo-based manufacturer known for its advanced materials and chemical products, has announced its strategic plan to acquire the chemical business operations from Kyocera Corporation. This acquisition will be executed through the purchase of all shares of a newly established company created by Kyocera, followed by an absorption-type company split, whereby Sumitomo Bakelite will succeed part of Kyocera’s chemical business. The targeted segment includes specialized materials such as epoxy-resin molding compounds used for semiconductor device encapsulation, bonding pastes for semiconductor devices, and a range of resins designed for industrial applications.
The acquisition aligns with Sumitomo Bakelite’s long-term strategy to strengthen its position in the information and communication technology (ICT) sector, particularly in high-growth markets related to semiconductors and advanced electronics. By bringing these assets under its umbrella, Sumitomo Bakelite aims to leverage the acquired technologies alongside its own advanced material expertise to create high value-added products that address evolving customer needs. This integration is expected to enhance the company’s technological capabilities, improve product innovation, and expand its competitive edge in the rapidly growing semiconductor materials market.
A key focus of this move is to strengthen Sumitomo Bakelite’s role in the expanding applications of artificial intelligence (AI) data centers, where high-performance materials for semiconductors are in increasing demand. The combination of Kyocera’s proprietary chemical technologies with Sumitomo Bakelite’s established strengths in material science is anticipated to create synergies that accelerate the development of next-generation epoxy-resin molding compounds and bonding pastes. These products are crucial for ensuring reliability, performance, and efficiency in semiconductor devices, which form the backbone of modern ICT infrastructure.
This acquisition also builds upon Sumitomo Bakelite’s prior expansion initiatives, including the company’s 2025 acquisition of AGC’s polycarbonate business, which further diversified its portfolio and reinforced its capabilities in high-performance materials. Together, these strategic acquisitions signal Sumitomo Bakelite’s commitment to growth through targeted investments in specialized chemical products and technologies that meet the demands of a rapidly evolving industrial landscape.
The company split and share transfer are scheduled to take effect in October 2026, marking a significant step in Sumitomo Bakelite’s ongoing efforts to strengthen its market position and technological leadership. By combining Kyocera’s chemical business with its own operations, Sumitomo Bakelite is well-positioned to accelerate innovation, expand its product offerings, and address the emerging needs of semiconductor and industrial applications worldwide.
