News
NGK Spark Plug targets semiconductor equipment sector with acquisition of Toshiba Materials
Tuesday, February 24, 2026 at 08:14 PM
NGK Spark Plug (Niterra) is accelerating its shift away from internal combustion engines by targeting the semiconductor and EV sectors. The company plans to complete a 150 billion yen acquisition of Toshiba Materials by June 2025, renaming it Niterra Materials, to leverage its ceramics expertise for semiconductor manufacturing equipment components. The firm aims to increase non-internal combustion revenue to 300 billion yen by March 2030.
Context
Niterra, formerly known as NGK Spark Plug, is aggressively pivoting away from its legacy internal combustion engine (ICE) business through the ¥150 billion acquisition of Toshiba Materials. Completed in June 2025, the deal transforms the target into a wholly-owned subsidiary rebranded as Niterra Materials. This strategic move secures a 50% global market share in silicon nitride ceramic balls, a critical component for high-voltage electric vehicle (EV) bearings and heat-dissipating substrates for power semiconductors.
The acquisition is the cornerstone of Niterra’s plan to scale non-ICE revenue to ¥300 billion by FY2030, representing a 2.6x increase from current levels. While the spark plug segment currently generates nearly all operating profit, management is leveraging its ceramic expertise to capture high-growth demand in the AI and semiconductor supply chains. This shift targets a total of ¥100 billion in annual sales from semiconductor production equipment by 2030, positioning the company as a key high-tech material supplier for the next generation of chip manufacturing.
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