End of an Era: Nikon Shuts Down Historic 58-Year-Old Yokohama Factory

Nikon Corporation has announced the closure of its historic Yokohama manufacturing plant, a facility with a rich 58-year history, effective September 30th. This significant move marks a strategic shift for the company as it navigates a challenging economic landscape. The plant was primarily responsible for manufacturing microscopes and conducting research and development for flat-panel display (FPD) manufacturing equipment.

Established in 1967, the Yokohama factory was Nikon's first production base located outside of its headquarters and played a pivotal role in Japan's semiconductor industry. The closure signifies the end of a major chapter for Nikon, particularly its legacy as a pioneer in the semiconductor field. The company has confirmed that the plant's personnel and operations will be migrated to other facilities.

The decision was driven by declining revenue in Nikon's Precision Equipment business, which has faced significant headwinds in recent years. Key factors contributing to this downturn include prolonged economic stagnation, demographic changes within Japan, and shrinking market demand for both semiconductors and displays.

In addition to broad market trends, the business was further impacted by external pressures. Operational difficulties faced by major clients, including Intel, and the economic effects of US tariffs added to the financial strain, ultimately solidifying the decision to cease operations at the Yokohama location.

As part of a broader strategy to optimize resource allocation, Nikon will transfer the production and R&D functions from the Yokohama plant to other sites within Kanagawa Prefecture and its Tokyo headquarters. This consolidation aims to streamline operations and improve efficiency. However, Nikon has not yet disclosed its plans for the future use of the factory's land.

The closure is expected to affect the company's financial results for the fiscal year 2025. Nikon projects that revenue from its Precision Equipment business will decrease by 8.4%, with an estimated income of 185 billion.

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