To meet the growing AI server demand, Panasonic Industry plans to invest approximately 17 billion yen in expanding production in Ayutthaya, Thailand.
TOKYO, Japan — September 10, 2025 — Panasonic Industry Co., Ltd., a Panasonic Group company, announced plans for a major expansion of its global production capacity for MEGTRON multi-layer circuit board materials today. The company plans to double its production over the next five years to meet growing demand in the AI server and ICT infrastructure markets.
To support the rapid deployment of AI technology, Panasonic Industry will invest approximately 17 billion yen to construct a new manufacturing facility at its Ayutthaya Plant in Thailand. The new plant will be located on grounds of the existing Panasonic Manufacturing Ayutthaya Co., Ltd. property. The new facility is scheduled to commence operations in November 2027, with mass production scheduled by the end of fiscal year 2028.
The rise of generative AI has accelerated the need for high-speed, high-capacity communication hardware. MEGTRON materials, an industry benchmark family of circuit board laminates known for their low transmission loss[1], are essential for stable and efficient signal transmission in servers, switches, and routers.
Panasonic Industry is committed to innovation in electronic materials and will continue investing in its MEGTRON product line. These advanced multi-layer circuit board materials support AI development and help address social challenges.
Terms
[1] Transmission loss
The reduction in signal strength (signal degradation) that occurs when an electronic signal travels through the traces on a circuit board, as part of the energy is converted into heat or other forms. Designed to minimize signal degradation, low-transmission-loss circuit board materials help improve communication stability and reliability, reduce heat generation, and lower power consumption in ICT infrastructure devices.
Overview of New Building, Panasonic Manufacturing Ayutthaya Co., Ltd.
| Address | Rojana Industrial Park 1/69 Moo5 Rojana Road, Tambol Kanham Amphur Uthai, Ayutthaya, Thailand, 13210 |
|---|---|
| Main products | MEGTRON Circuit board materials |
| Gross floor area | Approximately 19,400 m2 |
| Scheduled start of operations | November 2027 |
| Investment amount | Approximately 17 billion yen |
| Highlights | Based on the “Slim & Smart Factory” concept, the new facility will feature cutting-edge automation and energy-efficient technologies, aligning with Panasonic’s sustainability goals. |
About Panasonic Manufacturing Ayutthaya Co., Ltd.
-Established: September 1994
-Main products: Circuit Board Materials, Plastic Molding Compounds, and Semiconductor Encapsulants
About MEGTRON Multi-layer Circuit Board Materials
The MEGTRON brand encompasses a lineup of multi-layer circuit board materials that facilitate high speed transmission. These industry-leading materials enable high speed, large capacity transmission for diverse applications, including high speed communication network devices such as servers, routers, supercomputers, and base stations, as well as automotive and aerospace sectors.
MEGTRON6 (mass production launched in 2004), a pioneering low-transmission-loss multi-layer circuit board material adopted in high-end servers, was particularly awarded the outstanding achievement award in the 46th Ichimura Sangyo Prize from the Ichimura Foundation for New Technology in April 2014, and the 62nd Okochi Memorial Production Award from the Okochi Memorial Foundation in March 2016.
About Panasonic Industry Co., Ltd.
Panasonic Industry Co., Ltd. is an operating company within the Panasonic Group engaged in the development, manufacturing, and sales of electronic devices, materials, and related products. On a global basis, the company has about 39,200 employees and achieved net sales of 1,083.6 billion yen for the fiscal year ended March 31, 2025. The mission of the company states that “We will open the way to a better future and continue to contribute to an affluent society through a variety of device technologies.” Against the background of the explosion of data with the rise of the information-based society, greater demands for the environment and safety for the mobility society, and a labor shortage in manufacturing, the company will focus on areas where ongoing evolution is required and continue to provide customer value with the distinctive features of unique material and process technologies such as capacitors and electronic materials. Learn more about Panasonic Industry at https://www.panasonic.com/global/industry/.
Source: Panasonic Industry