JAPAN ELECTRONIC MATERIALS CORPORATION
6855・Standard Market・Electric Appliances
Business
Nihon Denshi Zairyo Kabushiki Kaisha (Japan Electronic Materials Corporation) is a semiconductor inspection components manufacturer founded in 1960, with its core business in the development, manufacture, and sale of probe cards (consumable components used to test the electrical characteristics of semiconductor wafers). The company offers three series of probe cards: the cantilever-type (C-type), the vertical-type (V-type), and the MEMS-technology-based M-type, with the Semiconductor Inspection Components Business accounting for over 99% of net sales. Its major customers are memory semiconductor manufacturers such as Micron Memory Japan, MICRON MEMORY TAIWAN, and FlashForward, and the company has built a global sales and support network with nine subsidiaries in Japan and overseas.
Business Model
The company custom-designs and manufactures probe cards tailored to customers' semiconductor manufacturing processes and inspection specifications, and sells them through domestic plants (Amagasaki head office, Kumamoto Business Office, Sanda Plant) and overseas subsidiaries. Probe cards are consumables, generating recurring demand. As shown by order intake of ¥32,775 million and an order backlog of ¥11,783 million (up 140.7% year on year), the company builds up advance orders while expanding production capacity, achieving high profit margins through fixed-cost absorption driven by high utilization rates.
Company Strengths
The M-type Probe Card (MC Series / ML Series / MT Series), which uses proprietary MEMS technology developed in-house in 2008, is a high-value-added product group addressing the needs of advanced semiconductors for higher integration and higher speed. In FY2026 (ending March 2026), the segment profit margin of the Semiconductor Inspection Components Business reached 31.4%, reflecting technological differentiation as high profitability in numerical terms.
The company has built a multi-site domestic production structure comprising the Amagasaki head office, the Kumamoto Plant (Plants No.1 through No.4), and the Sanda Plant. Full-scale operation of the Kumamoto Plant No.4, completed in October 2024, together with ongoing capital investment (¥3,866 million in FY2026, ending March 2026), has expanded production capacity. High utilization rates at domestic plants were the main factor behind operating profit of ¥7,249 million in FY2026 (ending March 2026), up 58.1% year on year.
The company maintains a global sales structure through seven overseas subsidiaries in the United States, Hong Kong, Taiwan, Europe, Shanghai, Thailand, and Shenzhen. It has an ongoing track record of transactions with major memory manufacturers such as Micron Memory Japan (15.6% of sales), MICRON MEMORY TAIWAN (15.3% of sales), and FlashForward (13.8% of sales), forming a stable order base.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥17,461 million in FY2024 (ended March 2024) before recovering sharply, reaching ¥29,366 million in FY2026 (ending March 2026), a record high since founding. Operating profit reached ¥7,249 million (operating margin of 24.7%) and net income attributable to owners of the parent reached ¥5,451 million, both also record highs. Externally, robust demand for advanced semiconductors such as image processing semiconductors for generative AI and HBM continued, and expanded sales of memory-related probe cards drove performance. High utilization rates at domestic plants generated profit leverage, with operating profit growth (up 58.1%) significantly outpacing revenue growth (up 23.2%). For FY2027 (ending March 2027), the company forecasts continued growth in both revenue and profit, with revenue of ¥33,000 million and operating profit of ¥7,450 million, but the growth rate is expected to decelerate due to increased upfront investment costs.
Growth Strategy
Strengthening capacity to address demand for advanced semiconductors through M-type sales expansion, new factory construction, and production capacity enhancement
In February 2026, the company resolved to construct a new factory in Amagasaki City, Hyogo Prefecture, aiming to strengthen the production system and improve production efficiency for M-type Probe Card (MC Series / ML Series / MT Series) using MEMS technology, as well as to develop products for next-generation semiconductors. Preparations are underway toward completion in August 2028, with the aim of substantially expanding production capacity over the medium to long term.
The Kumamoto No. 4 Plant, completed two years ago, has moved into full-scale operation, with capital expenditures for property, plant and equipment reaching ¥3,521 million in FY2026 (ending March 2026). Through maintaining high utilization rates at domestic plants and progressively enhancing production capacity, the company is building a supply system to meet growing demand for memory-related probe cards.
The company is promoting the expansion of sales of memory probe cards for advanced semiconductors (HBM and image processing semiconductors for generative AI) both in Japan and overseas. In FY2026 (ending March 2026), net sales of the Semiconductor Inspection Components Business reached ¥29,142 million (up 23.5% year on year), with segment profit of ¥9,139 million (up 51.5% year on year). The company continues to develop products for next-generation semiconductors as well.
The company continues to strengthen its workforce in line with production capacity expansion, while also working to reinforce and stabilize its supply chain in preparation for geopolitical and supply constraint risks. The company aims to enhance its resilience while closely monitoring changes in the external environment, such as U.S. trade policy and conditions in the Middle East.
Last updated: July 19, 2026