Tera Probe, Inc.
6627・Standard Market・Electric Appliances
Business
Terraprobe, Inc. is a member of the Powertech Technology Inc. (PTI) group, one of the world's leading OSAT companies, and its main business is providing contract wafer test and final test services in the semiconductor manufacturing process. It operates a two-site structure comprising the Kyushu Office in Kumamoto Prefecture in Japan and the Taiwanese subsidiary TeraPower Technology Inc. (TPW) overseas, offering testing services for a diverse range of semiconductor products including logic, microcontrollers, image sensors, analog, and memory. Its major customers are domestic and overseas semiconductor manufacturers and fabless companies such as Renesas Electronics, Annapurna Labs, and Socionext, and the company also offers the Turnkey Service in collaboration with the PTI group.
Business Model
The company uses test programs supplied by customers, together with inspection equipment such as testers and probers, to determine pass/fail status of semiconductors, and earns revenue by providing the results to customers. Since capital expenditure precedes revenue and is recovered over several years, the company's basic policy is to secure stable funding through long-term borrowings. It has set a management target of maintaining an operating margin in the low-to-mid 20% range, and achieved 21.3% in FY2025 (ending December 2025).
Company Strengths
For FY2025 (ending December 2025), net sales were ¥41,746 million (up 12.5% year on year), and operating profit was ¥8,893 million (up 28.0% year on year). Sales to North America expanded sharply from ¥5,096 million in the prior period to ¥12,274 million, reliably capturing AI- and server-related demand.
As a consolidated subsidiary of PTI, one of the world's leading OSAT companies, the company provides Turnkey Service through collaboration with the PTI Group. The combined sales ratio of new major customers such as Annapurna Labs and Socionext has reached 31%, reflecting progress in customer diversification.
TPW's Plant No. 3 was completed in October 2024, and the Taiwan subsidiary's tangible fixed assets increased from ¥33,357 million to ¥51,363 million. Total capital expenditure for FY2025 (ending December 2025) reached ¥30,554 million (with expenditure for the acquisition of tangible fixed assets of ¥29,780 million), strengthening the company's ability to respond to future demand.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has maintained an expanding trend, growing from ¥25,942 million (FY2021) to ¥41,746 million (FY2025). In Q1 (single quarter) of FY2026 (ending December 2026), revenue was ¥12,722 million (up 37.5% year on year), operating profit was ¥3,211 million (up 83.1% year on year), and ordinary profit was ¥3,258 million (up 94.5% year on year), demonstrating accelerating growth. As an external factor, the rapid expansion in demand for AI- and server-related semiconductors has served as a powerful tailwind. Profit attributable to owners of parent increased to ¥1,162 million (up 63.2% year on year), although the increase in depreciation expenses (¥4,338 million) and interest expenses (¥132 million) partially restrained profit growth. Both the cumulative forecast for the first half (revenue of ¥26,300 million, operating profit of ¥6,600 million) and the cumulative forecast for the first three quarters (revenue of ¥40,800 million, operating profit of ¥10,220 million) anticipate substantial year-on-year increases, and a new record-high full-year performance is coming into view.
Growth Strategy
Growth centered on capturing AI and advanced device demand and expanding production capacity at both the Japan and Taiwan sites
The company positions rising demand for server and AI-related products as its primary growth driver and aims for continued expansion of contract volume. In the first quarter of FY2026 (ending December 2026), these products performed solidly, achieving year-on-year revenue growth of 37.5%. Further demand growth is anticipated from the second quarter onward.
As a preemptive investment in anticipation of expanding demand for AI and server applications, the company is making active capital investments centered on its Taiwanese subsidiary TPW. Property, plant and equipment increased by ¥12,495 million from the previous fiscal year-end to ¥81,611 million as of the end of March 2026, with funding continuing to be raised partly through an increase in long-term borrowings (up ¥7,048 million).
Contract manufacturing of logic products for EVs for specific customers has remained strong. Logic product revenue expanded from ¥8,667 million in the same period of the prior year to ¥11,735 million in the first quarter of FY2026 (ending December 2026), and the deepening of long-term relationships with customers is contributing to the stabilization of the revenue base.
The company aims to increase contract volume at its Japan site as well, targeting improved profitability through the absorption of fixed costs (such as depreciation). The operating margin of 25.2% in the first quarter of FY2026 (ending December 2026) reflects the absorption of increased depreciation expenses arising from preemptive investment, and there remains further room for improvement through higher utilization rates.
Last updated: July 17, 2026