Dow Expands Silicone Manufacturing in US$100m Investment

Dow announced the advancement of a series of investment projects totaling roughly US$100m to expand its global specialty silicones manufacturing.

The investments, through to 2027, will expand Dow's specialty silicones capabilities across the US, China and Japan, focusing on advanced silicones and processing capabilities.

Dow, the world's largest and most integrated silicones producer, says it is making the investments to meet growing global demand in mobility, electronics and healthcare applications,​​​​​​ as the global silicones market is experiencing rapid growth spurred by data centres and semiconductors. 

The US$100m global investment

Dow's investments include liquid silicone rubber manufacturing expansions in Carrollton, Kentucky, US and Zhangjiagang, China which the company says will support high-performance applications across mobility, electronics and health care.

The investment also includes capacity expansions for engineered silicone materials which are scheduled this year in Songjiang, China and Fukui, Japan, with additional expansions in Auburn, Michigan, US and Zhangjiagang, China, expected in 2027.

These materials support advanced electronics applications, including power electronics, thermal and electrical protection and semiconductor packaging.

McKinsey says the semiconductor industry was valued in the range of US$630bn to US$680bn in 2024 and is expected to reach US$1tn to US$1.1tn by 2030. As the semiconductor industry rapidly expands, fuelled by the growth of AI and data centres, the engineered silicon supply chain will be essential to its growth. 

Expanding manufacturing capabilities

Brendy Lange, President of Performance Materials & Coatings at Dow, says: “These investments underscore Dow's focus on scaling specialty silicones materials and bringing innovation closer and faster to our customers.

“By expanding manufacturing and innovation capabilities in these strategic regions, we are investing to meet increasing consumer demand, strengthening our global supply chain capabilities, and enabling customers to move faster from innovation to commercialisation.”

The company also expanded its Cooling Science Labs in Shanghai, China and Michigan, US, earlier this year as part of the investment. 

Meeting customer demand across industry

According to Fortune Business Insights, the global silicones market size was valued at US$21.6bn in 2025 and is projected to grow from US$22.9bn in 2026 to US$34.7bn by 2034, exhibiting a compound annual growth rate of 5.3% during the forecast period. 

Amid incredible skyrocketing demand for products in microelectronics, energy electronics, consumer electronics components and advanced mobility, demand for specialty silicones continues to grow faster than GDP.​​​​​

Rising advanced mobility applications

Dow says its capabilities have expanded to support growing demand for silicone solutions used in mobility intelligence modules. 

Silicone materials are key to manufacturing reliable advanced driver assistance systems (ADAS) providing the stability needed to secure and protect intricate components. A recent report from Moody's noted that the average modern car now carries more than 1,700 semiconductors. 

The global automotive ADAS market size was estimated at US$68.26bn in 2025 and is projected to reach US$79.25bn in 2026 to US$261.62 billion by 2034, according to statistics from Fortune Business Insights.