Notice Regarding New Share Issuance and Secondary Offering

Summary of Capital Policy

Japan Electron Materials Co., Ltd. resolved at its Board of Directors meeting on February 25, 2026, to implement a public offering of 1,739,200 new shares, a secondary offering (overallotment) of 260,800 shares, and a third-party allotment of 260,800 shares to Nomura Securities Co., Ltd. As a result, the total number of issued shares will increase up to 14,666,510 shares. The estimated maximum net proceeds amount to approximately 14 billion yen and will mainly be allocated to the construction of the second plant at the headquarters in Amagasaki City, Hyogo Prefecture, with 12.5 billion yen budgeted. Any shortfall in funding for the capital increase is planned to be covered by internal funds.

Impact on Shareholders and Future Outlook

This fundraising aims to expand production capacity in response to the growing demand for M-type probe cards for memory applications driven by the expanding AI-related semiconductor market. The new factory construction will enhance productivity and promote the development of next-generation semiconductor products, targeting mid- to long-term shareholder value enhancement. Lock-up periods are established for shareholders, with major shareholders subject to a 90-day sales restriction. The dividend policy continues stable profit returns, with dividend payouts having increased from 40 yen to 70 yen annually over the past three fiscal periods.