The Japanese ceramics specialist NGK Insulators is making a bold pivot deeper into the semiconductor supply chain — announcing plans to triple production capacity for its HICERAM-based “Translucent Alumina Wafer” by fiscal-2027.
The wafers — also referred to as HICERAM Carriers — are a kind of support wafer used during “chiplet” integration, where multiple smaller chips are combined to deliver high performance without building a single monolithic die. Demand for these materials is rising as generative AI, autonomous systems and other advanced computing workloads reshape requirements for high-performance, power-efficient semiconductors.
Why NGK’s HICERAM wafer is gaining attention
The Translucent Alumina Wafer is made from NGK’s proprietary ceramic material, HICERAM, which mixes translucency (light-transmitting properties) with high rigidity and durability. Compared with conventional glass support wafers, the HICERAM wafer is far less prone to warping or breakage under the high-heat, high-stress conditions typical during chiplet integration.
The practical result: more stable manufacturing, lower yield loss and tighter quality control — outcomes that matter when chiplets are used in demanding applications such as AI accelerators, data-centre SoCs and next-gen onboard compute for autonomous vehicles.
The ramp-up plan
NGK will upgrade the production facilities of its subsidiary NGK Ceramic Device Co., Ltd. in Aichi Prefecture, which handles the wafer manufacturing, and also install new forming and firing equipment at NGK Electronics Devices Inc. in Yamaguchi Prefecture to handle upstream processes.
Once complete, the expanded capacity will raise output roughly threefold compared with current levels. The wafer business itself is positioned as a key pillar in NGK’s broader ambition to capture ¥20 billion in net sales from the high-performance semiconductor market by fiscal 2030.
Strategic context: from exhaust ceramics to digital infra
It’s a remarkable shift for NGK. The company, long known for ceramic substrates in automotive catalytic converters and related exhaust-gas purification technologies, is steadily transforming under its “NGK Group Vision Road to 2050.” The strategy aims to reposition the business toward “Digital Society” and “Carbon Neutral” sectors.
The translucent alumina wafer business appears to be one of NGK’s first material bets in that transformation. For an established ceramics firm to double down on semiconductors signals both confidence in the chiplet model and recognition of the huge growth potential that lies ahead — particularly as AI workloads demand more flexibility, higher bandwidth and mixed-function integration.
What it means for investors and the broader semiconductor supply chain
For NGK: If demand materialises, the expanded wafer capacity could unlock a meaningful new revenue stream well beyond its legacy automotive ceramics business. The ¥20 billion sales target by 2030 suggests substantial upside — assuming NGK can capture a decent slice of the chiplet-wafer market and navigate the competitive packaging-materials landscape.
For chip makers / packaging houses: More supply of durable, high-quality support wafers could ease a potential bottleneck. As chiplet integration scales, stable wafers will be critical to improving yield and lowering production costs.
For broader industry: This is another data point in the growing narrative that semiconductor materials and packaging are a rising frontier — not just raw silicon fabs. Firms that control the “under the hood” components like support wafers, interposers, ceramics and advanced substrates may well become more strategic — and more profitable — in the age of heterogenous integration and AI chips.
The caveats — and what to watch
Not all is guaranteed. The wafer market remains nascent, and demand is still beholden to how quickly chiplet adoption grows. While glass support wafers are widely used, uptake of ceramic alternatives depends on cost, supply stability, and how well new designs marry with evolving packaging standards.
For NGK, execution risk remains significant: new facility upgrades, process control, quality assurance — all must be handled flawlessly to maintain wafer integrity. And ultimately, the company will be competing with other materials and suppliers, including established glass-wafer vendors.
Still, NGK’s ceramics pedigree and early commitment to scaling production may give it an edge — especially if demand spikes as expected.