Japanese chemical trading giant Nagase & Co. will set up a new subsidiary in Wuxi, China, in April 2026 to manufacture high-purity chemicals for the semiconductor industry, aiming to capture surging demand from advanced chip production. The move signals a strategic push to localize supply for overseas buyers relying on China's semiconductor ecosystem.
New subsidiary and ownership structure
Nagase & Co. will establish Nagase Circlea (Wuxi) New Materials Co., Ltd. in Wuxi, Jiangsu Province. The parent company holds a 60% stake, while its wholly owned Chinese legal entity holds the remaining 40%. The new plant will focus on high-purity chemicals critical for semiconductor fabrication processes.
Integration of acquired assets
In June 2025, Nagase acquired the Asian high-purity chemical business from US-based Sachem. The acquired entity, currently named Sachem Japan (Higashiosaka, Osaka), will be rebranded as Nagase Circlea in April 2026. This integration brings together existing operations in China and South Korea under a unified Nagase Circlea brand to streamline management and enhance service quality.
Supply-chain impact
By establishing the Wuxi facility, Nagase aims to strengthen its supply network for high-purity chemicals in the semiconductor sector. The company expects to better serve the growing demand from advanced chip manufacturing in China, a key market for overseas chemical buyers and semiconductor material distributors.
What buyers should watch
Importers and formulators of high-purity chemicals for electronics should monitor Nagase's expanded local production capacity in China. The unified Nagase Circlea brand may lead to more consistent product specifications and shorter lead times for customers in Asia. Buyers should also assess potential shifts in pricing and availability as the new plant ramps up.
Source: Read the original report | Published: February 17, 2026