RION CO., LTD.

Business Details

A segment that develops, manufactures, and sells liquid-borne particle counters, airborne particle counters, and related products. Its primary customers are semiconductor manufacturing plants, and it captures demand for new plant construction and expansion around the world driven by capital expenditure demand for data centers for generative AI and similar applications. The Company (development, manufacturing, sales), Rion Techno Co., Ltd. (manufacturing), Kyushu Rion Co., Ltd. (sales), and Rion Service Center Co., Ltd. (service) collaborate to conduct this business. TAIWAN AMITY TECHNOLOGY CO., LTD. of Taiwan is a major sales destination.

Recent Overview

Net sales increased, but profit fell 14.0% year on year due to capacity expansion and higher development expenses

In the Particle Counter Business for FY2026 (ending March 2026), continued capital expenditure demand for generative AI data centers and similar applications drove new construction and expansion of semiconductor manufacturing plants, and sales of liquid-borne particle counters were strong, resulting in net sales of ¥9,711 million (up 1.7% year on year). On the other hand, segment profit declined to ¥2,391 million (down 14.0% year on year) due to increased capacity expansion to meet high product demand and rising development expenses related to cutting-edge models, with the profit margin falling from 29.1% to 24.6%.

Key Products

Growth Drivers

• Continued expansion of demand for liquid-borne particle counters driven by new construction and expansion of semiconductor manufacturing plants amid growing semiconductor demand for generative AI-related data centers
• Rising demand for particle counters from new construction and expansion of semiconductor manufacturing plants worldwide, driven by responses to geopolitical risk
• Addressing needs for cutting-edge models (high-precision particle counters) amid semiconductor miniaturization
• Acquisition of new orders and expanded sales leveraging enhanced production capacity (net sales expected to grow approximately 19% and operating profit approximately 32% over the next three years)
• Continuation and expansion of transactions with major overseas sales destinations such as TAIWAN AMITY TECHNOLOGY CO., LTD. in Taiwan

Risks

• Continued pressure on profit margins from capacity expansion to meet high product demand and increased development expenses related to cutting-edge models
• Demand volatility risk due to the semiconductor market's capital expenditure cycle (e.g., postponement of large orders)
• Volatility in net sales as a reaction to the concentration of large orders related to new semiconductor plant construction in the prior period
• Risk of changes in semiconductor plant investment plans due to shifts in geopolitical risk (such as US-China friction)
• Risk of sales concentration with a specific customer (TAIWAN AMITY TECHNOLOGY CO., LTD.)