PILLAR Corporation

Business Details

Centered on fluororesin products (Pillarflon products), this segment manufactures and sells high-performance components such as fittings, tubes, pumps, and valves for semiconductor and LCD manufacturing equipment. Its main customers are domestic and overseas semiconductor manufacturing equipment makers, with SCREEN Semiconductor Solutions Co., Ltd. being the largest customer. In addition to domestic manufacturing sites, the company has overseas manufacturing bases in China, Taiwan, and the United States, building a global supply system. This is the core segment, accounting for approximately 66% of consolidated net sales.

Recent Overview

Increased sales of semiconductor-related products offset the decline in the seismic isolation business, with both net sales and operating profit exceeding the prior period

In FY2026 (ending March 2026), net sales of the Electronic Equipment-related Business were ¥39,358 million (up 0.8% year on year), and operating profit was ¥9,064 million (up 2.9% year on year). Investment in advanced semiconductors, centered on generative AI-related demand, continued to trend favorably, while the recovery in demand for semiconductors for smartphones, PCs, and automotive applications was delayed, resulting in only moderate growth. Demand in the Chinese market continued to expand, and sales of Pillarflon products increased. The seismic isolation business saw a decline in sales due to the reversal of a large order recorded in the prior period. In the fourth quarter, a recovery in the semiconductor market was observed, and orders rebounded sharply. Net sales to the largest customer, SCREEN Semiconductor Solutions Co., Ltd., decreased to ¥7,757 million from ¥9,654 million in the prior period. The new plant in Chuzhou, China began operations, strengthening the global supply system.

Key Products

Growth Drivers

• Increased demand for Pillarflon products due to continued expansion of investment in advanced semiconductors, centered on generative AI-related demand
• Expansion of semiconductor and LCD manufacturing equipment-related demand in the Chinese market and strengthened supply capacity through the new Chuzhou plant's operation
• Continuation of the sharp order recovery trend against the backdrop of the semiconductor market's turnaround from the fourth quarter onward
• Sales growth and improved profitability through expansion of high-value-added products and strengthening of product supply systems tailored to customer needs
• Acceleration of overseas expansion utilizing the global manufacturing and sales network (Taiwan, the United States, Europe, and Asia)

Risks

• Delayed recovery in demand for semiconductors for smartphones, PCs, and automotive applications, and the impact of customer inventory adjustments
• Demand fluctuation risk, such as the reversal effect of large orders in the seismic isolation business
• Risk of profit pressure from increased fixed costs associated with aggressive capital investment (increase in tangible and intangible fixed assets of ¥4,670 million, more than 2.4 times the prior period)
• Uncertainty in the international economy and impact on the export environment due to U.S. trade policy (high tariff measures) and geopolitical risks
• High dependence on the business cycle of the semiconductor manufacturing equipment market (this is the core segment, accounting for approximately 66% of consolidated net sales)
• Risk of dependence on a specific customer, as seen in the decline in net sales to the largest customer, SCREEN Semiconductor Solutions Co., Ltd. (from ¥9,654 million to ¥7,757 million)