SAMCO INC.

Business Details

SAMCO Inc.'s sole business is the manufacture and sale of semiconductor and electronic component manufacturing equipment, centered on CVD Equipment, Etching Equipment, and Cleaning Equipment. The company supplies equipment to the compound semiconductor (GaN, GaAs, InP, SiC, etc.), silicon semiconductor, electronic component, and healthcare-related fields, supporting manufacturing processes for optical devices for data centers, power devices, high-frequency devices, and more. It employs a production system combining outsourced manufacturing to partner companies with in-house specification setting and shipment inspection, and sells through domestic direct sales and overseas distributors.

Recent Overview

The electronic component and compound semiconductor fields expanded rapidly, with orders received reaching approximately double the prior-year level

For the cumulative third quarter of FY2026 (ending July 2026) (August 2025 to April 2026), the company achieved net sales of ¥7,414 million (up 18.8% year-on-year) and operating income of ¥1,864 million (up 33.7% year-on-year), marking substantial growth in both revenue and profit. By application, the electronic component field led growth at ¥2,645 million (up 151.6% year-on-year), followed by the compound semiconductor field at ¥2,487 million (up 52.9% year-on-year). Orders received expanded sharply to ¥12,854 million, up 95.5% year-on-year, with the order backlog building up to ¥10,564 million. The overseas sales ratio rose significantly to 53.2% from 33.9% in the same period prior year, with Asia accounting for 74.5% of exports. The company revised its full-year earnings forecast upward and announced an increase in the year-end dividend forecast to ¥75 (up from ¥60 in the prior period).

Key Products

Growth Drivers

• Increased orders for Etching Equipment and CVD Equipment driven by rapidly expanding demand for optical devices (semiconductor lasers, InP-based) for AI data centers (orders received for Etching Equipment reached ¥8,190 million in the cumulative third quarter, approximately 2.1 times the prior-year period)
• Rapid expansion in sales for quantum device and high-frequency filter applications in the electronic component field (up 151.6% year-on-year in the cumulative third quarter)
• Continued growth in the compound semiconductor field (up 52.9% year-on-year, driven by strong demand for optical devices in telecommunications-related applications, among others)
• Synergies created between equipment sales and Parts & Maintenance through the strategy of strengthening production equipment sales (Parts & Maintenance sales up 20.5% year-on-year)
• Expansion of overseas sales (export ratio rose from 33.9% in the same period prior year to 53.2%, with Asia accounting for 74.5% of exports and expansion also in North America and Europe)
• Improved visibility of future sales recognition due to the buildup of the order backlog to ¥10,564 million

Risks

• Risk of monthly/quarterly sales fluctuations due to the capital expenditure cycle in the semiconductor market (the silicon semiconductor field continued its sharp decline, down 65.2% year-on-year in the cumulative third quarter)
• Risk of dependence on specific applications and customers (fluctuations in demand for electronic components, compound semiconductors, and data centers directly affect performance; the healthcare-related field declined 65.8% year-on-year)
• Impact of geopolitical risk and changes in trade policy in various countries (continued uncertainty amid rising trade barriers, with the overseas sales ratio at a high level of 53.2%)
• Supply risk and cost management risk in a production system reliant on outsourced manufacturing to partner companies
• Ongoing need for cost reduction and cost management efforts to achieve medium-term targets (equipment manufacturing cost ratio below 45% and operating margin of 25% or higher)
• Production capacity and delivery management risk in response to the sharp increase in the order backlog (¥10,564 million)