The country's seven major semiconductor makers are expected to spend a total of 984 billion yen on capital investment in the current fiscal year ending in March, according to data released by the companies Monday.
They have expanded their facilities to meet robust demand for system chips used in flat-screen TVs and digital home appliances, and flash memories for portable music players, among others.
However, they are facing tough competition from U.S., European and Asian firms that are spending even more to boost capacity.
Toshiba Corp. has the most ambitious investment program among domestic chip producers, spending 289 billion yen for fiscal 2005. The sum has been revised upward three times from the original 151 billion yen.
Elpida Memory Inc. came in second. It forecasts its capital spending will reach 190 billion yen as it brought a 300-mm wafer facility, where its state-of-the-art dynamic random-access memory chips are made, on stream in October.
Sony Corp. will have shelled out 160 billion yen by the end of the fiscal year to increase production of such devices as processors for advanced video game consoles and image sensors for digital cameras.
Among other major producers, Fujitsu Ltd. estimates its fiscal 2005 capital expenditures at 95 billion yen, NEC Electronics Corp. at 90 billion yen, and Matsushita Electric Industrial Co. and Renesas Technology Corp. at 80 billion yen each.