JAPAN MATERIAL Co.,Ltd.

Business Details

Provides consistent services for semiconductor plants, from Special Gas Supply Equipment Manufacturing and Supply Piping Design & Construction (Initial division) to Special Gas Sales Management and Technical Services (Operation division). Its strength lies in "Total Facility Management (TFM)", with major semiconductor manufacturers as customers, led by NAND flash memory plants. In addition to domestic operations, the business also operates in Taiwan and Singapore, and accounts for approximately 96.7% of Group revenue, making it the core business.

Recent Overview

Revenue and profit both increased significantly due to expanded semiconductor capital expenditure and full-scale operations

In FY2026 (ending March 2026), the Electronics-related Business achieved revenue of ¥56,047 million (up 10.9% year on year) and segment profit of ¥15,616 million (up 28.4% year on year). In the Initial division, Supply Piping Design & Construction (¥17,949 million) and Special Gas Supply Equipment Manufacturing (¥2,638 million) increased due to continued capital expenditure by major customers. In the Operation division, Technical Services (¥19,502 million) expanded due to an increase in operations at the new semiconductor plant that began in fiscal 2024 and the continued high level of production activity at NAND flash memory plants. Overseas special gas sales and manufacturing/sales of semiconductor manufacturing equipment parts also performed steadily.

Key Products

Growth Drivers

• Increased orders in the Initial division (Supply Piping Design & Construction, Special Gas Supply Equipment Manufacturing) driven by expanded capital expenditure by leading-edge semiconductor manufacturers amid the spread of generative AI and growing data center demand
• Expansion of a stable revenue base through full-scale operation activities at the new semiconductor plant that began operations in fiscal 2024
• Increased revenue from Special Gas Sales Management and Technical Services due to continued high-level production activity at the NAND flash memory plant, a major customer
• Expansion of business scope through active deployment of TFM (Total Facility Management) and in-house training of engineers
• Steady performance of overseas special gas sales and manufacturing/sales of semiconductor manufacturing equipment parts, primarily in Taiwan and Singapore

Risks

• Impact on performance from changes in the capital expenditure schedules of major customers or significant changes in customer plant utilization rates (explicitly stated as a premise for earnings forecasts)
• Risk that revenue in the Initial division (Special Gas Supply Equipment Manufacturing, Supply Piping Design & Construction) is dependent on semiconductor manufacturers' capital expenditure cycles, with fluctuations in the investment cycle directly affecting performance
• Difficulty securing skilled engineering talent (reliance on in-house training amid difficulty in external recruitment)
• Risk from fluctuations in material and energy resource prices (rising costs due to inflation associated with a weaker yen)
• Information management risk within customer plants (given the high volume of work involving exposure to customer information, thorough information security management is a challenge)
• Impact on the semiconductor supply chain from geopolitical risks such as U.S. policy trends and Middle East tensions