TOKYO (Reuters) - Japan semiconductor materials maker Shin-Etsu Chemical said on Tuesday it will invest around 83 billion yen ($545 million) in a factory in Gunma prefecture in the latest effort to strengthen the country's chip supply chain.

The factory will produce lithography materials for use in chipmaking, with the first phase of investment to be completed by 2026 as Shin-Etsu looks to tap into growing customer demand and diversify its production base.