Japanese chemical giant Mitsubishi Gas Chemical Company (MGC) is ramping up its semiconductor materials manufacturing capacity in Thailand, betting on sustained growth in demand for advanced semiconductor packaging materials, particularly for data centres and servers.
The Tokyo-headquartered company announced that it will expand manufacturing and product inspection facilities at its Thai subsidiary, MGC Electrotechno (Thailand) Co., Ltd. (MGC-ETT), in Rayong Province. The expansion is aimed at boosting production capacity for BT materials, which are widely used in semiconductor packaging.
The move comes as demand for FC-BGA (Flip Chip Ball Grid Array) substrates, a critical component in advanced semiconductor packaging, is expected to rise alongside the expansion of the global electronics and semiconductor markets.
Under the expansion plan, MGC will install new prepreg manufacturing equipment for copper-clad laminates at its Thai facility and increase shipment capacity by expanding product inspection operations.
MGC has been building a dual-site global supply network for BT materials through manufacturing operations in Japan and Thailand since 2013. The strategy was designed to strengthen business continuity and ensure a stable supply of products.
While its Japanese facility, MGC Electrotechno Co., Ltd. (MGC-ET), has traditionally handled mass production of new products alongside advanced, high-performance and high-mix, low-volume products, the Thai subsidiary has focused primarily on low-mix, high-volume manufacturing.
The company further strengthened its Thai manufacturing base with the completion of an expansion plant at MGC-ETT in 2025.
The latest investment marks another step in MGC's efforts to scale up production and capture opportunities in the fast-growing semiconductor packaging market.
Beyond increasing output, the expansion is expected to bolster the MGC Group's business continuity capabilities and reinforce its ability to meet the increasingly diverse requirements of global semiconductor manufacturers.
The company said the additional capacity would help it respond more quickly to market demand while maintaining a stable supply of high-performance BT materials.
Construction of the new capacity expansion is scheduled to begin in April 2027, with commercial operations expected to start in October 2028.
