Key facts
- Kyocera plans to invest 650 billion yen ($4 billion) in its components business, targeting semiconductor manufacturing equipment and AI data centers.
- TOTO's advanced ceramics division is a major contributor to its operating profit, driven by demand for AI chip components.
- TOTO's advanced ceramics segment is projected to account for over 50% of the company's operating profit in FY2026.
- TOTO's electrostatic chucks are critical components for cryogenic etching tools used in 3D NAND flash memory production.
- TOTO's operating margin in its advanced ceramics division is expected to surpass 40%.
Kyocera is set to invest 650 billion yen ($4 billion) in its components business, with a strategic focus on high-growth sectors including semiconductor manufacturing equipment and artificial intelligence data centers. This move positions Kyocera to compete in markets increasingly driven by AI demand.
Simultaneously, TOTO, a company traditionally known for its sanitaryware, is experiencing significant financial gains from its advanced ceramics division. This segment supplies critical high-precision ceramic parts essential for chipmaking equipment, which are vital for the ongoing AI boom. According to Nikkei, this advanced ceramics business is expected to account for more than half of TOTO's total operating profit for the fiscal year ending March 2026.
TOTO forecasts its advanced ceramics division's operating profit to increase by 32% to a record ¥27 billion ($169 million) for the fiscal year ending March 2026. This division is projected to contribute 55% of the group's total operating profit, significantly outpacing its legacy housing businesses. The operating margin for this segment is anticipated to exceed 40%, a substantial increase from just under 9% five years prior.
The company's product offerings for the semiconductor industry include electrostatic chucks (e-chucks) used in etching tools to form circuits on silicon wafers, aerosol deposition components for shielding chamber walls in etching systems, and durable structural parts for LCD panel production equipment. Analysts suggest that tight supply-demand conditions in the memory market and the continuous buildout of AI data centers will sustain demand for TOTO's products. TOTO is also exploring opportunities in chiplet integration technology, viewing its structural components as suitable for fixture materials.
TOTO is recognized as the second-largest global supplier of Electrostatic Chucks (ESCs), a crucial component in semiconductor manufacturing that uses electrostatic force to hold silicon wafers in place during processes like cryogenic dielectric etching. This technology is essential for fabricating advanced 3D NAND flash memory, which is used in AI data centers. TOTO's expertise in ceramics, honed over decades in sanitaryware manufacturing, translates to the high purity, precise temperature control, and ultra-fine polishing required for semiconductor-grade ceramics.