TOTO Invests 80 Billion Yen to Capture 1nm Semiconductor Component Market

Japanese sanitary ware manufacturer TOTO has announced plans to invest 80 billion yen (approximately 157 billion NTD) into its semiconductor equipment components business over the next five years. According to the Nikkei, although TOTO is best known for bathroom fixtures, its semiconductor-related business has become a major profit driver due to the surging demand for AI chips, signaling a shift in Japan’s industrial landscape.

TOTO will concentrate its research and development in Kanagawa Prefecture, specifically targeting components for logic semiconductor manufacturing equipment capable of 1nm-class circuitry. This focus is driven by the industry trend where smaller line widths correspond to higher chip performance, a field where leaders like TSMC are already planning beyond their 2nm processes.

To boost production capacity, TOTO is upgrading its existing facilities in Buzen, Fukuoka Prefecture, and Nakatsu, Oita Prefecture. A new production plant in Buzen is scheduled for completion in January 2027. The company has already allocated 39 billion yen of the total 80 billion yen budget, with subsequent investments subject to market conditions.

TOTO has been involved in semiconductor components since the 1980s, leveraging its sintering expertise. Its core product, the "electrostatic chuck" used to secure silicon wafers, is prized for its high durability due to specialized high-purity ceramics. The firm also possesses strong capabilities in the Aerosol Deposition (AD) method for ceramic coating.

Following a period of losses, the semiconductor division saw a sharp rise in demand around 2020. It has now surpassed the sanitary ware division as the company’s most profitable segment. This pivot reflects a broader trend among Japanese firms, such as Unitika and Ajinomoto, which have successfully repurposed legacy technologies to serve the semiconductor and data center sectors.