Toto, Nittobo, and Ajinomoto—Japanese companies known for toilets, textiles, and MSG seasoning—saw their shares surge 78%, 63%, and 61% respectively this year as they supply critical semiconductor components. The three firms reported sharp growth in semiconductor-related businesses for their financial year ended March 31, driven by AI and data center demand. Toto manufactures ceramic electrostatic chucks for semiconductor equipment, Nittobo supplies glass fiber for semiconductor substrates, and Ajinomoto produces insulating film for semiconductor packaging. The financial results highlight how traditional manufacturers have become hidden beneficiaries of the AI supply chain, with specialized materials playing essential roles in advanced chip production.
Toto Reports 34% Revenue Growth in Advanced Ceramics Segment
Toto's advanced ceramics business saw a 34% increase in annual revenue and a 42% jump in operating profit for the financial year ended March 31. The company's full year results showed that while its core housing equipment unit experienced decreased sales and profits, the advanced ceramics segment compensated with substantial gains. The company attributed the growth to demand from IoT, digital transformation, AI, and data centers for advanced semiconductor equipment. Toto began manufacturing electronic chucks for semiconductor manufacturing equipment in 1988, leveraging its ceramics expertise developed over decades. These chucks hold silicon wafers in place during the etching process, with Toto stating that their ceramics significantly contribute to improving manufacturing yield of advanced chips.
The company told CNBC it does not view one segment as superior to the other, noting that the Advanced Ceramics Business endured long periods of deficits over its 40-year history before reaching profitability. Toto plans to maintain a balanced ratio between both segments for sustainable growth and stated it has "absolutely no plans" to pivot away from its core housing equipment business, which provides a stable foundation while the chip sector remains volatile.
Nittobo Electronic Materials Sales Climb 20.4% Year-on-Year
Nittobo's electronic materials business segment saw net sales climb 20.4% year-on-year and operating profit increase 39.7% compared to the previous financial year. According to the company's results, strong demand related to AI servers and strong sales of "Special Glass" pushed up sales and profits. The segment contributed approximately 91% to Nittobo's net sales increase in the financial year, with the segment's profit rising by 5.5 billion yen (about $34 million), exceeding the company's overall operating profit increase of 4.4 billion yen.
Nittobo's T-glass product, launched in 1984, is used in printed circuit boards and electronic components. The company told CNBC that T-glass and other electronic materials are "the pillar" of its growth for the next decade, and that AI semiconductor demand was changing how it allocates capital expenditure, research and development, and human resources. In its results release, Nittobo stated it "expects to see strong demand for Special Glass used in electronic materials, particularly for servers at data centers, network equipment, and semiconductor package substrates, and will proactively strengthen its efforts to expand production capacity to meet this demand."
Ajinomoto Healthcare Segment Profit Rises 45.1%
Ajinomoto's "Healthcare and Others" segment—which includes its ABF insulating film product—saw revenue increase approximately 4% and business profit rise 45.1% year-on-year, partly due to higher revenue for electronic materials. The segment, which makes up more than a third of the company's profit for the financial year, surpassed Ajinomoto's frozen food segment in terms of revenue and profit. According to Ajinomoto's website, a byproduct from the MSG manufacturing process helped the company develop technologies that led to the creation of ABF. The product was put on the market in 1999 and is currently used for high-performance semiconductors, including CPUs.
Ajinomoto states that ABF's role has become more important as semiconductor packaging has grown more complex, and that AI, 5G, and other advanced technologies will continue to drive semiconductor demand. The company said in its presentation materials, "We foresee continued growth centered on ABF products in high-value-added and cutting-edge fields." Ajinomoto aims for a "one-to-one balance" between its food business and its AminoScience business, with ABF contributing to the latter.
Companies Balance Traditional and Semiconductor Businesses
All three companies emphasized their commitment to maintaining their traditional core businesses alongside semiconductor operations. Toto stated that its housing equipment business provides a stable foundation for the company's balance sheet while the chip sector remains volatile. Nittobo said it is expanding applications for its traditional glass-fiber businesses, including composite and industrial materials, even as electronic materials become increasingly lucrative. Ajinomoto continues to focus on food as its primary business while developing its AminoScience segment that includes ABF products.
FAQ
What semiconductor products do Toto, Nittobo, and Ajinomoto manufacture?
Toto manufactures ceramic electrostatic chucks used in semiconductor manufacturing equipment to hold silicon wafers during the etching process. Nittobo supplies advanced glass fiber, specifically its T-glass product, used in semiconductor package substrates, printed circuit boards, and electronic components. Ajinomoto produces ABF (build-up film) insulating material used in semiconductor packaging for high-performance computers and data-center servers.
How much did these companies' shares increase this year?
Toto's shares gained 78%, Nittobo's shares increased 63%, and Ajinomoto's shares rose 61% this year, as reported in the source article covering their performance tied to the AI boom and semiconductor demand.
What financial results did these companies report for the year ended March 31?
Toto's advanced ceramics business saw a 34% increase in annual revenue and 42% jump in operating profit. Nittobo's electronic materials segment reported net sales climbing 20.4% year-on-year and operating profit increasing 39.7%. Ajinomoto's Healthcare and Others segment, which includes ABF products, saw business profit rise 45.1% year-on-year, partly due to higher revenue for electronic materials.
