Nvidia supplier Towa plans new factory in Japan

Japanese chipmaking equipment maker Towa will build a new plant in Japan to strengthen the country's semiconductor supply chain, the company's CEO said. Towa makes tools used to mold and package chips. It supplies major chip companies, including Nvidia, the U.S. firm whose processors power most artificial intelligence systems. The new factory is part of a broader push to bring more semiconductor production back to Japan. Governments and companies worldwide are investing heavily to reduce reliance on a few manufacturing hubs, mainly in Asia. Towa did not say where the plant will be built or how much it will cost. More details are expected later. The move comes as demand for AI chips keeps rising, boosting orders for the equipment and materials needed to make them.