KABARMEGAPOLITAN.com – Who would have thought, the company known for its smart toilet products would now reap the biggest profits from the semiconductor industry.
TOTO, one of the world’s ceramic giants, is undergoing a major transformation in its business model.
In the 2025 fiscal year financial report (ending March 2026), TOTO recorded important achievements:
For the first time, the operating profit of the advanced ceramics business surpassed that of its main business in the bathroom equipment sector.
His contribution even reached:
- 55% of the company’s total operating profit
This means that TOTO’s biggest source of profit is no longer toilets or sinks—but components for the chip industry.
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Even though it sounds new, TOTO has actually been in this business for a long time, to be precise since the 1980s.
Its main product is electrostatic chuck, an important component in the semiconductor manufacturing process.
Function:
- Holds silicon wafers during the production process
- Used in extreme conditions (high temperatures, corrosive environments, strong electric fields)
This component is not just any ceramic.
Electrostatic chucks must meet very high standards:
- Extreme level of flatness (up to 1/80 the thickness of a human hair)
- High material purity
- Heat resistance and strong electrical insulation
In this area, TOTO is known as one of the leading players with technology that is difficult to imitate.
The surge in the AI industry is the main factor behind this success.
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The need for high-performance chips—especially memory like NAND flash—is skyrocketing, driving:
- Massive expansion of wafer factories
- High demand for precision components
The impact on TOTO is very significant:
- The business’s profit margin jumped from 9% to over 40% in 5 years
The market also responded positively.
When the Japanese stock market opens on May 1:
- TOTO shares rise more than 18%
- Market capitalization reaches 1 trillion yen
Analysts see this trend as part of a larger cycle in the semiconductor industry.
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AI data center expansion fuels:
- High memory demand
- Supply-demand imbalance
- The “super cycle” phase in the chip industry
The effect?
TOTO’s electrostatic chuck orders are even full until 2027.***
