Taiwanese media Liberty Times published an article on the 26th titled 'From Toilets to Semiconductors, Japan's Hidden Champion'.

The article pointed out that, 'Recently, as Japanese stocks have been performing strongly, artificial intelligence (AI) and semiconductor supply chain-related stocks have become one of the areas of focus, and among them, one of the 'AI dark horse stocks' attracting market attention is TOTO, known for its toilet business.' It explained that 'TOTO is involved in a component called an electrostatic chuck (ESC), which is used in semiconductor manufacturing equipment. This is a high-performance ceramic component that electrostatically holds wafers in a vacuum, and it has become indispensable in processes such as etching.'

Furthermore, the article reported that, 'In recent years, against the backdrop of the AI boom, demand for storage devices for data centers has surged. While GPUs tend to attract attention in AI, in reality, enormous amounts of data storage are required, leading to a rapid expansion in demand for storage like NAND flash and SSDs. 3D NAND is becoming highly layered, and more advanced temperature control and wafer holding technologies are required in the manufacturing process. Amidst this, demand for TOTO's ESCs has also surged.'

And then, the article mentioned, 'TOTO applied its long-cultivated ceramics technology to the semiconductor field. Originally, in the manufacturing of high-end toilets, it was necessary to manage the shrinkage rate, flatness, heat resistance, and corrosion resistance of ceramics at an extremely high level, and that technology evolved into ceramics for semiconductor manufacturing equipment.' It commented, 'TOTO fully launched its ceramic business for semiconductors in the 1980s. Currently, the advanced ceramics division has become the company's largest source of profit. In other words, TOTO today earns more from semiconductor components than from toilets.'

The article pointed out that, 'ESC requires the accumulation of complex technologies, and it is not an area where startups can easily enter with just capital. Once certified by an equipment manufacturer, customers do not easily switch suppliers, which tends to lead to stable earnings.' While adding that, 'Some in the industry compare TOTO to Ajinomoto, which boasts high profits from insulating materials for semiconductors,' the view is emerging that the strength of Japanese companies lies in such materials and component technologies rather than finished product brands, and it reported that TOTO is also undergoing a re-evaluation as a semiconductor material manufacturer supporting the AI era. (Translated and edited by Kitada)