NITTO BOSEKI CO., LTD.
3110・Prime Market・Glass & Ceramics Products
Electronic Materials Business
Nitto Boseki's core profit-generating segment. High growth driven by Special Glass for AI servers and semiconductors.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year FY2026, ending March 2026) | ¥49,265 million | ¥40,911 million | ↑ |
| Operating Income (Full Year FY2026, ending March 2026) | ¥19,391 million | ¥13,880 million | ↑ |
| Operating Margin (Full Year FY2026, ending March 2026) | 39.4% | 33.9% | ↑ |
| Segment Assets (as of end of FY2026, ending March 2026) | ¥129,381 million | ¥102,912 million | ↑ |
| Depreciation (Full Year FY2026, ending March 2026) | ¥7,229 million | ¥5,849 million | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets (Full Year FY2026, ending March 2026) | ¥18,691 million | ¥10,072 million | ↑ |
Business Details
This segment develops, manufactures, and sells glass fiber products for electronic materials applications. It maintains an integrated production system encompassing both glass fiber yarn manufacturing and glass cloth processing. Centered on specially formulated Special Glass with low dielectric and low thermal expansion properties, the segment expands into the printed wiring board materials field, AI server applications, and semiconductor package substrate applications. It operates globally in collaboration with domestic and overseas affiliated companies. In FY2026 (ending March 2026), this segment accounted for approximately 41.7% of consolidated net sales, making it the company's core profit segment.
Recent Overview
Robust AI server demand drove strong Special Glass sales, resulting in substantial increases in both net sales and operating income.
In FY2026 (ending March 2026), sales of low dielectric Special Glass and low thermal expansion Special Glass for semiconductor package substrates trended favorably, driven by continued robust demand from AI servers. Net sales reached ¥49,265 million (up 20.4% year on year), and operating income reached ¥19,391 million (up 39.7% year on year), achieving substantial profit growth. Capital expenditure also expanded to ¥18,691 million, approximately 1.9 times the prior year's level, as the company actively pursues capacity expansion investments toward FY2027 (ending March 2027).
Key Products
Growth Drivers
- Expanded sales of low dielectric Special Glass driven by continued robust demand for AI servers
- Increased demand for low thermal expansion Special Glass for semiconductor package substrates
- Capacity expansion investments from FY2027 (ending March 2027) onward, driven by data center server and network equipment demand (capital expenditure forecast of ¥45,000 million for FY2027, ending March 2027)
- Shift toward high-value-added products driven by the sophistication of information and communications infrastructure
- Competitive advantage from an integrated production system spanning glass fiber yarn manufacturing and glass cloth processing
- Active pursuit of investment in expanding Special Glass production capacity under the Medium-Term Management Plan (FY2024-FY2027)
Risks
- Risk of technological catch-up progress by domestic and overseas competitors
- Risk of demand fluctuation in the AI server and semiconductor markets (dependence on specific markets)
- Uncertainty in demand due to geopolitical risks such as China's economic slowdown and U.S. tariff policy
- Risk of profit pressure from soaring raw material and energy costs
- Foreign exchange fluctuation risk at overseas locations in Taiwan, China, and elsewhere
- Investment recovery risk associated with large-scale capital expenditure (forecast of ¥45,000 million for FY2027, ending March 2027)
Last updated: June 18, 2026