In August, Funai Microfluidic Solutions (FMS) announced it had relocated its headquarters from Osaka, Japan, to Lexington.
“The relocation of our headquarters to Lexington was a natural progression as our facility transitioned from a [research and development] center to the driver of our global strategy,” said Mike Marra, FMS’s chief technology officer. “The unique blend of pioneering technology and exceptional skill sets within this facility fuels our vision, and headquartering the company in Lexington makes sense.”
Mike Marra
In 2013, Osaka-based Funai Electric Co. LTD purchased Lexmark International Inc.’s inkjet technology. Later that year, Funai established Funai Lexington Technology Company as a wholly owned subsidiary to handle research and development for inkjet and microfluidic technology. Funai Microfluidic Solutions is itself a wholly owned subsidiary of Funai Electric Co., a consumer electronics company that, in the United States, supplies electronics to Walmart and Sam’s Club stores.
Since then, the company has generated 170 patent filings in the United States and introduced 15 new products in the commercial and industrial printing markets, as well as cosmetic and fragrance delivery. Further research is looking into microfluidic technology applications related to drug delivery, discovery, and diagnostic applications.
Marra said that the number of engineers and technicians who were part of Lexmark’s inkjet business and already located here, as well as the location of its physical assets, keyed into the decision to relocate Funai’s headquarters to Lexington.
The company will continue to focus on microfluidic products, which include printing, as well as products like pure dispensers and Life Science-related applications.
“When Funai formed Funai Lexington Technology Corporation 10 years ago, that was the first Funai R&D facility outside of Japan, which is significant,” he said. “With the move of the business headquarters to Lexington, that’s the first time they’ve had a business headquarters outside of Osaka. I would say that decision was due to a combination of new leadership in Osaka as well as the leadership that they’ve recognized in Lexington.”
In 2022, the company announced a $3.8 million expansion in Fayette County that grew its facility on Setzer Way and its workforce. The investment was targeted at upgrading the company’s Micro Electro Mechanical System (MEMS) processing and manufacturing equipment, which is used to create microfluidic channels on a semiconductor wafer that are critical in the accuracy of precise liquid handling devices. The expansion created six new jobs. Since 2020, Funai has grown its local workforce from 34 to 50.
Marra said the company expects to continue growing through its association with related businesses and suppliers in Central Kentucky.
“If we grow our business as planned, then [more jobs] would be a natural progression,” he said. “A big advantage we’ve had being in Central Kentucky is that we’ve been able to capture a lot of top-notch talent from the local universities who wanted to stay in Kentucky.”
Gov. Andy Beshear said Funai’s decision to stay in Lexington indicates the area’s strength in the technology sector.
“The commonwealth’s technology sector has been expanding, and Funai’s decision to move its headquarters here shows it’s only growing stronger,” Beshear said in a statement. “It’s truly exciting that Funai’s leadership has chosen Lexington as the company’s business headquarters, and it shows that we’re building an economy here that works for all our people.”
Marra said the Central Kentucky location also helps from a supply chain standpoint.
“It’s such a global supply chain these days,” Marra said. “There are always challenges. I don’t see that we’ve quite fully recovered from the pandemic. Honestly, it just takes a little more forethought and planning to ensure business continuity. But I’d say we have no major challenges being located in the Central Kentucky area. If anything, I’d say we’ve had advantages by being here.”
Several Kentucky business investment programs also supported the transition.
Koji Yamanaka
“The support of programs such as the Kentucky Business Investment Program and Kentucky Enterprise Initiative Act has made Lexington a welcoming ecosystem for our endeavors,” said Koji Yamanaka, CEO of Funai Microfluidics business unit.
Marra agreed: “We’ve definitely benefited from those programs,” he said. “We’re still fairly small — especially if you look at the size of the organization Lexmark used to have driving some other projects. We’ve had to make very targeted investments, and these programs have helped us save money to direct towards some of our more strategic investments.
“That’s all played into our ability to grow here,” Marra continued. “When Funai Lexington was originally formed in 2013, besides it being the location of the Lexmark-related assets, I think that that financial piece was always something our Japanese owners took into account.”
Commerce Lexington president and CEO Bob Quick said the company’s decision indicates Lexington’s global impact on business.
“Funai joins a growing group of international companies with headquarters in the greater Lexington region,” Quick said. “We look forward to continuing our work with the team at Funai as they continue to provide quality high-tech jobs to our community and find innovative solutions in the field of life sciences.”