EBARA Signs Long-Term Lease Agreement for New Precision Machinery Segment Production Facility
~Expanding Production Capacity to Meet Growing Medium- to Long-Term Semiconductor Demand~

EBARA Corporation (“EBARA”) has entered into a fixed-term building lease agreement (the “Agreement”) with SHINKO ELECTRIC INDUSTRIES CO., LTD. (“Shinko Electric”) to lease a portion of the Mobara Plant in Chiba Prefecture, including cleanroom and other production facilities. The property is part of the facility that Shinko Electric is scheduled to acquire from Japan Display Inc. (“JDI”).

Through this Agreement, EBARA has secured stable production capacity to support anticipated medium- to long-term growth in demand within the semiconductor market.

Driven by the rapid adoption of AI technologies and expanding data center investment worldwide, the semiconductor market is expected to experience significant medium- to long-term growth, particularly in AI-related applications.

Driven by continued growth in semiconductor manufacturing, demand is increasing rapidly for products provided by EBARA's Precision Machinery Segment that are essential to the production of advanced logic and memory semiconductors and other leading-edge devices.*

*Including CMP systems, plating systems, bevel polishing systems, dry vacuum pumps, gas abatement systems, ozonized water generators, and vacuum exhaust systems for EUV lithography equipment

EBARA’s Precision Machinery Segment has steadily expanded production capacity and improved efficiency at its core sites, including the Kumamoto and Fujisawa districts. Alongside these ongoing investments, EBARA has continued to explore options for further capacity expansion to support medium- to long-term growth in semiconductor demand.

As part of these efforts, EBARA has decided to lease a portion of Building J1 at JDI's Mobara Plant (the "Property"), which features a large-scale, high-specification cleanroom and can be brought into operation within a relatively short time frame.

The Property will enable EBARA to meet near-term demand growth, enhance business continuity through a more diversified production footprint, and maintain a stable supply of products to customers worldwide. These advantages made the Property the optimal choice for strengthening EBARA's production capabilities.

Combined with capacity expansions at existing facilities, the lease agreement is expected to increase production capacity to up to 2.5 times the level of FY2026.

The Property will serve as a new production site, enabling EBARA to respond flexibly and with sufficient capacity to growing semiconductor demand while supporting the continued growth of the Precision Machinery Segment.

The impact of this lease agreement on EBARA's consolidated financial results for the current fiscal year is not expected to be material.

EBARA will promptly disclose any material developments requiring announcement in the future.
 

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