ADTEC PLASMA TECHNOLOGY CO.,LTD.

Business Details

Provides design, manufacturing, sales, and Technical Services for High-Frequency Power Supplies for Plasma, Matching Units, Measuring Instruments, and other equipment installed in manufacturing equipment used in semiconductor and LCD substrate manufacturing processes. In addition to the Company (domestic), six overseas subsidiaries in the US, Europe, Vietnam, South Korea, Taiwan, and China operate this business. Sales to the Asia region account for more than half of total sales, with generative AI-related demand serving as the main growth driver. In the cumulative third quarter of FY2026 (ending March 2026), the order environment improved from the second quarter onward, resulting in a significant increase in orders received.

Recent Overview

Sales and profit declined year-on-year, but orders received sharply recovered, up 71.7% year-on-year

Segment sales for the cumulative third quarter of FY2026 (ending March 2026) were ¥8,463 million (down 7.1% year-on-year), and operating profit was ¥1,306 million (down 19.1% year-on-year), both below the same period of the prior year. This was due to a delayed impact on sales from the rapid deterioration of the order environment in the second half of the previous fiscal year caused by US tariff policy. On the other hand, against a backdrop of easing concerns over reciprocal tariffs and expanding capital investment in the semiconductor industry, the order environment improved from the second quarter onward, with orders received in the cumulative third quarter reaching ¥13,272 million (up 71.7% year-on-year) and the order backlog reaching ¥8,098 million (up 133.3% year-on-year), a substantial buildup that points to an expected recovery in sales going forward. By region, sales to Japan were ¥3,168 million and sales to the Asia region were ¥3,906 million, with Asia continuing to be the main market.

Key Products

Growth Drivers

• Continued expansion of demand for high-performance semiconductors related to generative AI (mainly for servers and data centers)
• Continuation of investment by various countries to strengthen domestic semiconductor production capacity (including China's domestic production policy)
• Increased production and procurement activity by semiconductor manufacturing equipment makers against a backdrop of easing concerns over reciprocal tariffs
• Acquisition of new customers and evaluation projects through enhanced new product promotion at domestic and overseas exhibitions
• Increased production capacity and cost reduction through in-house sheet metal processing at the Vietnam subsidiary
• Acquisition of new orders from manufacturers of film deposition equipment for displays

Risks

• Risk of sudden changes in the order environment due to US tariff policy trends (as materialized from the third quarter of the previous fiscal year onward)
• Risk of business fluctuation due to external factors such as the silicon cycle
• Risk of product obsolescence due to changes in semiconductor and LCD manufacturing processes and technological innovation
• Uneven demand in some applications outside AI-related use (risk of demand polarization)
• Uncertainty over the global economic outlook due to geopolitical risks centered on the Middle East and Europe
• Foreign exchange risk (high sensitivity to exchange rates, including a foreign exchange gain of ¥580 million recorded in the cumulative third quarter)
• Occurrence of investment losses under the equity method (¥169 million in the cumulative third quarter)