JX Advanced Metals Corporation

Business Details

A segment that manufactures and sells Sputtering Targets for Semiconductors as its main product, along with Compound Semiconductor & Crystal Materials (InP・CdZnTe), Tantalum & Niobium Materials (TANIOBIS), and others. The company operates global production sites in the U.S., Taiwan, South Korea, and Japan, providing stable supply to major semiconductor manufacturers. Centered on high-purity refinement technology, composition and microstructure control technology, surface control technology, and analytical evaluation technology, the segment offers differentiated products for advanced logic and memory applications. Expansion of AI-related demand is positioned as the primary growth driver.

Recent Overview

Sputtering target sales increased on expanding AI demand; net sales up 20% YoY, operating income up ¥12.8 billion YoY

In FY2026 (ending March 2026), against the backdrop of sustained high-level demand for advanced logic semiconductors and advanced memory such as HBM for AI data centers, sales increased for key products including Sputtering Targets for Semiconductors. Although yen appreciation was a factor reducing profit, the effect of increased sales outweighed this, resulting in an increase in profit compared to the prior period. Net sales were ¥177,195 million (up approximately 20% year on year), and operating income was ¥39,492 million (up ¥12,754 million year on year). Additionally, on March 26, 2026, the Hitachinaka Plant was opened as a new core site for advanced materials, establishing a system for reinforcing supply capacity and R&D.

Key Products

Growth Drivers

• Expanding demand for high-performance semiconductors for AI servers accompanying the spread of generative AI (sustained high-level demand for advanced logic and advanced memory such as HBM)
• Increased demand for InP substrates and other materials due to expansion of network equipment and optical communications applications in AI data centers
• Increased sputtering target usage per device due to progress in semiconductor multilayering and miniaturization
• Reinforcement of supply capacity for Sputtering Targets for Semiconductors and creation of R&D and new businesses through the Hitachinaka Plant, which opened on March 26, 2026
• Expansion of production capacity and productivity improvement through process automation at the new Mesa, Arizona plant in the U.S. (completed November 2024)
• Aggressive capital investment aiming to achieve approximately 1.6 times the production capacity of FY2024 (ended March 2024) by FY2028 (ending March 2028)
• Expansion of the next-generation product lineup through the start of full-scale supply of CVD & ALD Materials

Risks

• Risk of profit decline due to progressing yen appreciation (yen appreciation manifested as a profit-reducing factor also in FY2026 (ending March 2026))
• Impact on the semiconductor supply chain due to uncertainty over U.S. tariff policy
• Risk of fluctuations in semiconductor market demand (decreased sales volume during inventory adjustment phases)
• Risk of profitability deterioration at European subsidiaries, including TANIOBIS GmbH
• Risk of rising procurement costs and supply uncertainty for tantalum and other rare metal raw materials
• Geopolitical risk associated with the concentration of advanced semiconductor manufacturers' production sites (Taiwan, South Korea, U.S.)
• Risk of profit pressure from increased depreciation expenses associated with large-scale capital investments such as the Hitachinaka Plant