FUSO CHEMICAL CO., LTD
4368・Prime Market・Chemicals
Business
Fuso Chemical Co., Ltd. is a chemical manufacturer founded in 1957 and headquartered in Osaka, operating two business segments: the "Life Science Business" and the "Electronic Materials Business." In the Life Science Business, the company manufactures and sells fruit acids and organic acids such as Malic Acids, Citric Acids, and Gluconic Acids for food, industrial, and pharmaceutical applications, and also offers high-value-added products such as Food Additive Preparations (FFA). In the Electronic Materials Business, the company's core product is "Quartron®," Ultra-High Purity Colloidal Silica used in semiconductor CMP (chemical mechanical planarization) slurries, which has grown rapidly amid expanding demand for AI semiconductors. The company has manufacturing and sales bases both domestically and overseas, with overseas sales accounting for 55.1% of total revenue. Major customers include leading semiconductor materials companies such as FUJIFILM Electronic Materials Taiwan Co., Ltd. (13.9% of sales).
Business Model
The company manufactures high-purity chemicals at its own manufacturing and R&D sites (Osaka Plant, Kashima Office, Kyoto Office, Kobe Research Laboratory, Tokyo Research Laboratory, etc.) and sells them directly to customers both domestically and internationally, adopting a vertically integrated model. The Electronic Materials Business achieved an operating margin of 38.4% in FY2026 (ending March 2026), supported by Ultra-High Purity Colloidal Silica, a niche product with high barriers to entry that underpins its high profitability. The Life Science Business leverages the company's manufacturing and sales know-how as a comprehensive fruit acid manufacturer along with its global network, accumulating earnings through local production and sales via overseas subsidiaries (China, Thailand, and the United States).
Company Strengths
"Quartron®" for semiconductor CMP polishing slurry possesses precision technologies such as particle size distribution control and reduction of coarse particles, and has gained customer adoption in next-generation semiconductor manufacturing processes at the 1.8nm technology node and beyond. The Kashima Phase I facility has completed qualification and is operating at full capacity, while the new Kyoto line has also progressed through qualification earlier than expected, transitioning to full-scale operation from the end of FY2026 (ending March 2026), thereby building long-term relationships of trust with customers.
The company carries out integrated manufacturing of fruit acids such as Malic Acids, Citric Acids, and Gluconic Acids both domestically and internationally, and has built a global sales network through overseas subsidiaries in China (three companies in Qingdao), Thailand, and the United States (PMP Fermentation Products, Inc.). In FY2026 (ending March 2026), volume of Malic Acids increased 20% year on year, and Gluconic Acids in the United States increased 10% year on year, with many years of manufacturing and sales know-how serving as a source of competitiveness.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 77.0%, total net assets reached ¥117,216 million, and ROE was secured at 12.9%. Operating cash flow was ample at ¥24,793 million, providing a financial foundation capable of executing the large-scale capital investment of ¥40,000 million in total for the Kyoto plant through a combination of internal funds and long-term borrowings.
ENVALITH's Perspective
Performance Trend
The performance trend over the past five fiscal years has been as follows: FY2022 (net sales ¥55,760 million, operating profit ¥15,035 million) → FY2023 (¥68,459 million, ¥18,931 million) → FY2024 (¥58,970 million, ¥11,084 million; a temporary adjustment due to worsening semiconductor market conditions and prolonged periodic maintenance) → FY2025 (¥69,502 million, ¥16,231 million; a substantial recovery) → FY2026 (¥76,926 million, ¥18,850 million; a new record high). In FY2026 (ending March 2026), the Electronic Materials Business achieved 25% sales growth through the synergy of AI semiconductor demand (an external factor) and the launch of new equipment in Kashima (an internal factor). The operating profit margin on net sales improved to 24.5% (up from 23.4% in the previous period). Ordinary profit, also boosted by an increase in foreign exchange gains, reached ¥19,573 million (up 18.2% year on year), and net income attributable to owners of the parent, further supported by gains on sales of investment securities, reached ¥14,311 million (up 23.1% year on year), with all profit indicators reaching new record highs.
Growth Strategy
Phased expansion of production capacity for AI semiconductors and the ¥120,000 million revenue target under the new medium-term plan "Hiyaku 2030"
The new manufacturing facility, with total investment of ¥20,723 million (increased from the original plan of ¥20,000 million), was completed in August 2025 and began full-scale operations in December 2025. The company is proceeding with efforts to obtain customer qualification, and the increase in sales volume from full operation is expected to contribute to results from FY2027 (ending March 2027) onward.
A large-scale investment of ¥40,000 million in total, funded by internal resources. Construction began in March 2026 and is scheduled for completion in February 2029. Upon completion, production capacity will be significantly expanded, serving as a key driver for responding to medium- to long-term demand growth and achieving the revenue target under the new medium-term plan "Hiyaku 2030". The amount already disbursed was ¥403 million (as of the end of FY2026, ending March 2026).
With the aim of strengthening the overseas revenue base of the Life Science Business, the company has decided on an expansion investment for sodium gluconate at its U.S. subsidiary, PMP Fermentation Products, Inc. The aim is to expand sales in the North American market and increase profit contribution.
A five-year plan with FY2031 (ending March 2031) as the final year has been formulated and launched. With the FY2027 (ending March 2027) forecast (revenue of ¥85,800 million, operating income of ¥24,300 million) as the first step, the company aims to achieve its targets centered on the completion of the Kyoto Plant investment and continued growth of the Electronic Materials Business.
The company has expanded the floor space of the Tokyo Research Laboratory to strengthen its R&D structure. The Electronic Materials Business Division is focusing on developing products that address the miniaturization, multilayering, and higher performance of semiconductors, as well as developing new products such as Hollow Silica and Other New Functional Materials. The Life Science Business Division is promoting expanded adoption of high value-added products such as coated organic acids and food additive preparations.
Last updated: July 19, 2026