FUJIMI INCORPORATED
5384・Prime Market・Glass & Ceramics Products
Business
Fujimi Incorporated is a specialty abrasives manufacturer founded in 1950, whose core businesses are polishing materials and lapping materials for silicon wafers, and CMP (Chemical Mechanical Planarization) Products used in semiconductor device manufacturing processes. The company maintains the world's No.1 market share in ultra-precision abrasives for semiconductor substrates, and has built a global framework with manufacturing and sales bases in Japan, the United States, Taiwan, Malaysia, and Europe. Its major customers are silicon wafer manufacturers and semiconductor device manufacturers, including TSMC (17.4% of net sales) and Nagase & Co., Ltd. (25.0% of net sales). Against the backdrop of expanding demand for advanced semiconductors for AI applications, net sales, operating income, and ordinary income all reached record highs in FY2026 (ending March 2026).
Business Model
Fujimi Incorporated, based on its three core technologies of "filtration, classification and refining technology," "powder technology," and "chemical technology," manufactures products at production sites in Japan, the United States, Taiwan, and Malaysia located close to customers' manufacturing and development bases, and continuously sells them as consumables essential to semiconductor manufacturing processes. The company invests ¥5,835 million annually (FY2026 (ending March 2026)) in R&D expenses, maintaining high barriers to entry and customer loyalty by developing new products ahead of time in line with customer roadmaps.
Company Strengths
The company has maintained the world's No.1 market share in ultra-precision abrasives for silicon wafers for many years. In FY2026 (ending March 2026), sales of polishing materials for silicon wafers reached ¥13,384 million (up 5.4% year on year), while lapping materials reached ¥7,590 million. Continued adoption by major customers makes imitation by competitors difficult.
The company has established manufacturing and development sites in Japan, the United States, Taiwan, and Malaysia, building a supply structure close to customers' production sites. In FY2026 (ending March 2026), R&D expenses totaled ¥5,835 million (Japan: ¥4,271 million, North America: ¥1,038 million, Asia: ¥525 million). The company continuously develops new products in line with customer roadmaps, forming deep relationships of trust with major customers such as TSMC.
Since its founding, the company has accumulated three core technologies—"filtration, classification, and refining technology," "powder technology," and "chemical technology." Advanced techniques such as particle size distribution control, particle shape control, and additive design for abrasive grains are difficult to imitate in a short period. In FY2026 (ending March 2026), sales of CMP Products reached ¥36,135 million (up 17.9% year on year), maintaining high growth, with technological superiority directly driving business performance.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥51,423 million in FY2024 (ended March 2024) and has increased for two consecutive periods since, reaching a record ¥69,404 million in FY2026 (ending March 2026), up 11.0% year on year. Operating profit rose 17.4% year on year to ¥13,826 million, with the operating profit margin improving to 19.9% (from 18.8% in the previous period), reflecting improved profitability. However, due to the recording of ¥1,215 million in prior-period corporate taxes and other items following findings from a tax audit by the Nagoya Regional Taxation Bureau, profit attributable to owners of parent decreased 3.9% year on year to ¥9,059 million, marking the first profit decline in three periods. While demand for advanced semiconductors for AI applications has been driving performance as an external factor, increased depreciation expenses associated with large-scale capital expenditure (acquisition of property, plant and equipment of ¥21,263 million) are expected to affect profit margins from FY2027 (ending March 2027) onward. For FY2027 (ending March 2027), the company forecasts revenue of ¥74,800 million, operating profit of ¥14,500 million, and net income of ¥10,400 million.
Growth Strategy
Evolution from an abrasives manufacturer to a Powder & Surface company, coupled with strengthening the foundation of semiconductor-related businesses
To capture growing demand for AI-related advanced logic and advanced memory, the company executed large-scale capital expenditures of ¥21,263 million in property, plant and equipment acquisitions (of which ¥22,746 million was in the Japan segment) in FY2026 (ending March 2026). Buildings and structures (net) expanded to approximately 3.9x the previous fiscal year, significantly strengthening the supply system.
Utilizing bases in Taiwan and Malaysia, the company expanded sales of CMP Products to advanced logic customers such as TSMC. In FY2026 (ending March 2026), Asia segment sales were ¥19,599 million (up 17.0% year on year) and segment profit was ¥5,252 million (up 11.6% year on year), continuing high growth. Personnel increases and expense investments are also underway in preparation for future demand.
With the addition of sales from Nanko Ceramics Co., Ltd., which became a subsidiary in the previous fiscal year, sales of General Industrial Abrasives (Polishing Solutions) expanded to ¥6,426 million (up 18.7% year on year). The company aims to diversify revenue sources through expansion into applications outside of semiconductors.
During the current mid-to-long-term management plan period (FY2024 (ending March 2024) to FY2029 (ending March 2029)), the company added a basic policy of a "progressive dividend that maintains or increases dividends." The annual dividend for FY2026 (ending March 2026) was ¥75 (payout ratio of 61.4%), with a forecast of ¥77 for FY2027 (ending March 2027), continuing dividend increases. The company targets a consolidated payout ratio of 55% or more, aiming to balance investment and shareholder returns.
Last updated: July 19, 2026