Mizuho Bank announced on April 28, 2026, that it has launched a joint study with Ishizaka Group, Nishiki, and Nifco to explore the recycling of plastic waste generated by the semiconductor industry into materials for automotive components. Conducted in Kyushu—one of Japan's major hubs for both semiconductor manufacturing and automotive production—the project will evaluate the entire recycling process, from advanced waste sorting and material compounding to component molding and performance testing. If successful, the initiative could pave the way for a circular supply chain that connects manufacturing and recycling industries, enabling the practical implementation of a closed-loop resource circulation model.

Semiconductor Plastic Waste Remains Dependent on Incineration and Landfill

As semiconductor manufacturing continues to expand in Kyushu, substantial volumes of plastic waste are being generated, with further increases expected in the coming years. Currently, most of this waste is treated through thermal recycling, which recovers energy from incineration, or is ultimately disposed of through incineration or landfill. By contrast, material recycling—where waste plastics are reprocessed into raw materials for new products—remains limited.

Meanwhile, the automotive industry is preparing for stricter circularity requirements under the European Union's revised End-of-Life Vehicles (ELV) Regulation. The proposed rules would gradually increase the minimum share of recycled plastics used in new vehicles to 15% six years after implementation and 25% after ten years. At least 20% of that recycled content must be sourced from end-of-life vehicles, a requirement expected to significantly boost demand for recycled plastics across the automotive sector. As Kyushu is also one of Japan's leading automotive production centers, ensuring a stable supply of recycled materials is becoming an increasingly important regional challenge.

The "X to Car" Model: Four Companies, Distinct Roles Across the Circular Value Chain

The joint study is built around the concept of "X to Car," exploring the feasibility of a closed-loop material recycling supply chain that transforms plastic waste generated by the semiconductor industry into materials for automotive components.

Each partner will contribute expertise at a different stage of the value chain. Ishizaka Group, known for its advanced waste-sorting technologies and experience in building recycling networks, will be responsible for collecting and sorting semiconductor-related plastic waste according to its intended application. Nishiki will process the recovered materials and develop compounds that meet automotive industry specifications.

Nifco will use the recycled materials to develop automotive components and assess their manufacturability, focusing on mechanical performance, durability, and quality consistency. Mizuho Bank will examine financial and business support mechanisms to help establish and scale a circular supply chain for the project.

Growing Momentum for Higher-Value Plastic Recycling

Efforts to recycle plastic waste are gaining momentum through both chemical and mechanical recycling pathways. Since March 2024, Resonac has been advancing its Kawasaki Plastic Recycling (KPR) initiative, which gasifies used plastics generated during semiconductor materials manufacturing. The hydrogen recovered through the process is then used as a feedstock for low-carbon ammonia production. In September 2025, the project was selected for support under Japan's Ministry of Economy, Trade and Industry (METI) program designed to bridge the cost gap between conventional and low-carbon products, prompting Resonac to move forward with plans to expand the business.

In the automotive recycling sector, DENSO and five partner companies established the BlueRebirth Council in June 2025. The initiative seeks to recover high-purity single-material plastics from end-of-life vehicles through automated robotic dismantling, enabling their reuse as valuable recycled resources.

Against this backdrop, the joint study by Mizuho Bank and its three partners represents a notable step toward cross-industry circularity. By redirecting plastic waste generated by the semiconductor industry into automotive applications, the project aims to connect two of Kyushu's key industrial sectors through a closed-loop resource circulation model. If successful, it could serve as a blueprint for regional circular economy ecosystems, demonstrating how manufacturing and recycling industries can collaborate to create locally integrated, sustainable supply chains.