Japan's Towa eyes third chip tool plant in South Korea amid AI boom

Rising costs prompt company to shift production closer to customers

20250630N Towa

Towa held a completion ceremony for its second South Korean plant on June 30.  (Photo by Nami Matsuura)

NAMI MATSUURA

CHEONAN, South Korea -- Buoyed by strong demand brought about by the generative AI boom, Japanese chip tool maker Towa is considering further expanding its production capacity in South Korea, where it just completed a second facility.

"It's possible that we build a third plant in South Korea," Towa's president, Muneo Miura, said in an interview with Nikkei on Monday.

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