Kyocera Corporation, one of Japan’s leading chip component manufacturers, has launched two strategic venture funds totaling $100 million, marking an ambitious new chapter in its commitment to global technology startups. Known for its extensive reach in semiconductors and telecommunications, the Kyoto-based company is allocating $60 million through its Kyocera Venture Fund-I, with a focus on startups in the U.S., the Middle East, and Africa. The remaining $40 million, managed through its Kyocera Venture Innovation Fund-I, targets early- to growth-stage technology ventures across Asia. Both funds have a 10-year investment horizon and prioritize advancements in artificial intelligence, renewable energy, and mobility.
With the Kyocera Venture Fund-I, Kyocera aims to tap into the growing African startup ecosystem, looking to identify and support pioneering companies pushing boundaries in AI and clean energy. This represents the company’s first foray into African technology investment, joining a trend of increasing Japanese corporate venture capital interest in the continent’s burgeoning tech scene.
In an October interview, Shouichi Nakagawa, Kyocera’s Senior General Manager of Corporate R&D, emphasized the strategic alignment of these funds with Kyocera’s long-term goal to harness cutting-edge technologies across its business verticals. “We are keen on startups offering innovations that complement our strengths in semiconductor components and expand our portfolio into AI-driven solutions,” Nakagawa said.
Investments Targeting AI and Chip Technology
The Kyocera Venture Fund-I has already made investments in U.S. tech companies Chipletz and Mixed-Signal Devices, both of which address critical demands within the semiconductor sector. Texas-based Chipletz, a startup born from the advanced manufacturing expertise of Lisa Su’s AMD, has developed an innovative chip packaging technology that enables close integration of individual chips. Unlike traditional methods, Chipletz’s approach eliminates the need for interposers — small components that facilitate connectivity — resulting in faster processing speeds and optimized performance for AI applications. The rising demand for efficient chip technologies, spurred by AI and machine learning applications, makes this development particularly relevant, especially as industries seek higher performance from miniaturized semiconductor components.
“Chipletz stands out for its unique approach to packaging technology, which provides a cost-effective solution that we believe will drive new efficiencies in AI and high-performance computing,” said Nakagawa. The partnership offers dual advantages for Kyocera, which not only invests in Chipletz’s promising technology but also plans to supply the startup with its semiconductor components, such as ceramic packages, connectors, and timing devices.
Mixed-Signal Devices, based in California, develops high-performance clock and timing devices, crucial for synchronizing data center operations and ensuring seamless telecommunications. This technology is integral to Kyocera’s plans to expand its data center capabilities, where precise timing and clock synchronization are essential. The company’s decision to support Mixed-Signal Devices also aligns with its strategy to leverage the startup’s technology across its electronics and data infrastructure projects.
Exploring AI Integration and Sustainability Solutions
Kyocera’s investment agenda reflects its broader business objectives, notably within AI and energy-efficient technology. Nakagawa indicated that the company is actively exploring partnerships with AI software startups that could integrate with its printer business, which remains one of its core revenue drivers. Potential applications include document filtering to enhance security, energy-efficient data transmission using optical signals, and thermoelectric conversion to harness waste heat as power. These advancements not only bolster Kyocera’s existing products but also address pressing environmental challenges in tech manufacturing and data storage.
The Kyocera Venture Innovation Fund-I, dedicated to the Asian market, has already invested in Turing, a Tokyo-based self-driving technology startup. Unlike conventional autonomous vehicles that depend on sensor-based navigation and detailed maps, Turing leverages AI to make real-time driving decisions, aiming for a more versatile and adaptive approach to autonomous driving.
Kyocera’s long-standing experience in venture capital investments underpins its current efforts. In 2000, it joined forces with Goldman Sachs to establish a private equity fund that focused on Japanese startups, initially with $286 million, broadening its tech portfolio over the years with the help of partnerships like Plug and Play’s U.S. accelerator network. Such partnerships have fueled Kyocera’s ventures into industries as diverse as healthcare and advanced materials, further diversifying its tech footprint.
Founded in 1959 by the late Kazuo Inamori, Kyocera has grown from its roots in ceramic components to become a global leader in high-performance materials, electronics, and communication devices. It holds a commanding 80% market share in ceramic semiconductor packages, a vital component that links chips to electronic circuits.
As Kyocera’s latest investments seek to harness the potential of AI and renewable energy, the company’s entry into Africa signals an evolving strategy that blends traditional manufacturing expertise with cutting-edge tech. By establishing a foothold in emerging markets, Kyocera is betting on the cross-continental growth of AI and clean energy solutions, and its venture funds position it as a pivotal player in the evolution of global semiconductor and tech innovation.