KOKUSAI ELECTRIC CORPORATION (the ?Company?) hereby announced that it has decided to newly acquire a property adjacent to its Tonami Manufacturing Center (Tonami City, Toyama Prefecture) from Tonami City. The semiconductor-related market, to which the Company belongs, is expected to grow significantly reflecting the recovery and increase in consumer electronics demand over the medium- to long-term as well as further expansion of data centers due to greater adoption of AI, IoT, digital transformation (DX), etc., and investments in green transformation. At the same time, higher performing semiconductor manufacturing equipment is in great demand given the multilayering, miniaturization, increasing complexity, and 3D integration of semiconductor device structures.

The semiconductor manufacturing equipment market, therefore, is also expected to expand significantly. In such a business environment, the Company started operation of the Tonami Manufacturing Center in October 2024 to increase group-wide production capacity with an eye on the anticipated expansion in the semiconductor-related market. At the same time, it pushed ahead with the relocation of production functions from Toyama Technology & Manufacturing Center (Toyama City, Toyama Prefecture) to Tonami Manufacturing Center while strengthening Toyama Technology & Manufacturing Center?s function as a research and development base.

The Company expects these initiatives to be sufficient to cover the semiconductor-related market growth through 2030. Nonetheless, it decided to acquire the land adjacent to its Tonami Manufacturing Center, owned by Tonami City, Toyama Prefecture, because the semiconductor-related market is expected to grow larger and faster than initially anticipated. While the details of how to use the land to be acquired are yet to be finalized, the Company expects it to contribute to various initiatives of the KOKUSAI ELECTRIC Group, including production and R&D, by leveraging the existing supply chain, logistics network, and other functions that can be effectively utilized.

(1) Location Takaoka Tonami Smart IC Yanaze Industrial Park 2 (Shimonakajo, Tonami City, Toyama Prefecture) (2) Site area Approx. 43,000 m2 (3) Acquisition cost Approx. JPY 1,000 million.

(1) Name Tonami City (2) Location Tonami City Hall; 7-3 Sakae-machi, Tonami City, Toyama Prefecture (3) Representative Osamu Natsuno, Mayor. The transfer of the land is scheduled to be completed by around September 2026, following approval votes and other procedures by the City assembly of Tonami City. The Company does not anticipate the acquisition of the fixed asset to affect its financial results for the current fiscal year.

Should any matters requiring disclosure arise in the future, the Company will disclose them promptly.