TOTO, Nitto Boseki, and Ajinomoto saw their stocks surge this year as demand for AI semiconductors boosted sales of specialized components these Japanese manufacturers produce. TOTO's stock rose 78%, Nitto Boseki's climbed 63%, and Ajinomoto's gained 61%, according to CNBC. The three companies—known respectively for bidets, glass fiber, and food seasonings—grew semiconductor-related divisions during the fiscal year ended March 31 by applying decades of material science expertise to chipmaking supply chains.
TOTO Applies Ceramic Technology to Semiconductor Equipment Parts
TOTO manufactures ceramic electrostatic chucks used in semiconductor equipment. The component holds silicon wafers in place with electrostatic force during etching processes that carve circuit patterns. TOTO has produced these parts since 1988, stating its ceramics withstand high temperatures without deformation and improve chip yield rates. The company's advanced ceramics division recorded 34% revenue growth and 42% operating profit growth in the last fiscal year. Demand came from IoT, digital transformation, AI, and data center applications requiring advanced semiconductor equipment. The division's profit margin exceeded TOTO's core housing equipment business, which saw declining sales and profit. TOTO told CNBC it does not view one division as superior to another, noting advanced ceramics endured long losses over its 40-year history before reaching profitability. The company stated it has no plans to exit housing equipment, describing semiconductor markets as volatile while housing provides financial stability.
Nitto Boseki Supplies Glass Fiber for AI Server Circuit Boards
Nitto Boseki's T-glass specialty fiber, introduced in 1984, goes into printed circuit boards and electronic components. The material resists thermal expansion and minimizes electrical signal loss, making it suitable for AI server semiconductor package substrates that mount multiple chips on one board. Nitto Boseki's electronic materials division grew revenue 20.4% and operating profit 39.7% in the last fiscal year. CNBC calculated this division accounted for approximately 91% of the company's total revenue increase. The division's profit gain of 5.5 billion yen exceeded the company's overall operating profit increase of 4.4 billion yen, indicating other businesses declined. Nitto Boseki called T-glass and other electronic materials a pillar of growth for the next 10 years, stating AI semiconductor demand is changing its capital investment, R&D, and staffing approaches. The company said electronic materials are highly likely to remain its most important business into the distant future, and it plans to increase production for data center servers and network equipment.
Ajinomoto Produces Insulation Film for High-Performance Chips
Ajinomoto developed its ABF insulation film for semiconductor packaging from research on byproducts of MSG seasoning production. The company launched ABF in 1999 for use in high-performance chips including CPUs. The product insulates stacked wiring layers connecting chips to substrates, with its role expanding as packaging grows more complex. Ajinomoto does not disclose separate ABF results, but its healthcare and other division—which includes electronic materials—grew revenue approximately 4% and business profit 45.1% in the last fiscal year on electronic materials sales. This division generates over one-third of company-wide profit and surpassed frozen foods in both revenue and profit. Ajinomoto projected continued growth centered on ABF in high-value-added and advanced fields. The company stated it targets a 1-to-1 balance between its food business and amino science business, which includes ABF.
FAQ
What did TOTO, Nitto Boseki, and Ajinomoto do this year?
TOTO's stock rose 78%, Nitto Boseki's climbed 63%, and Ajinomoto's gained 61% this year as their semiconductor component divisions grew during the fiscal year ended March 31.
Why did these Japanese companies benefit from AI demand?
TOTO makes ceramic electrostatic chucks for chip etching equipment, Nitto Boseki produces T-glass fiber for AI server circuit boards, and Ajinomoto supplies ABF insulation film for high-performance semiconductor packaging—all experiencing increased demand from AI and data center applications.
