ADVANTEST CORPORATION

Business Details

This segment covers SoC Test Systems for SoC semiconductor devices, Memory Test Systems for memory semiconductor devices, Test Handlers, Device Interfaces, and System Level Test Solutions. Starting from the current fiscal year, the former "Semiconductor & Component Test System Business" and "Mechatronics-related Business" have been integrated and reorganized into the "Test System Business." This is the largest segment, accounting for 90.3% of consolidated net sales. Major customers include large Asian semiconductor manufacturers such as TSMC and the Samsung Group.

Recent Overview

Demand for testers used with AI-related high-performance semiconductors expanded significantly, with both sales and profit reaching record highs.

In FY2026 (ending March 2026), Test System Business net sales were ¥1,019,380 million (up 49.3% year on year), and segment profit was ¥518,760 million (up 97.9% year on year), representing substantial increases in both revenue and profit. Sales of testers for high-performance SoC semiconductors surged against a backdrop of expanding demand for HPC devices and AI-related semiconductors. Memory Test Systems also performed steadily, centered on high-performance DRAM. Strengthened product supply capacity enabled timely delivery, contributing to sales growth. Note that, starting this fiscal year, the segment classification has been reorganized into the "Test System Business" (integrating the former Semiconductor & Component Test System Business and Mechatronics-related Business).

Key Products

Growth Drivers

• A sharp increase in SoC tester investment driven by expanding demand for AI/HPC-related semiconductors (sales to Asia increased substantially year on year)
• Robust expansion in demand for memory testers for high-performance DRAM including HBM
• Increasing sophistication and lengthening of test processes due to growing semiconductor complexity, performance improvements, and adoption of advanced packaging
• Timely product delivery achieved through strengthened production supply capacity (enhanced supply chain resilience)
• Robust capital expenditure appetite among major customers such as TSMC and the Samsung Group
• Strengthened comprehensive test solution provision capabilities through reorganization into the Test System Business
• Growth investment in capacity expansion and next-generation solution development funded by convertible bonds due 2031 (total issuance amount of approximately ¥100,000 million)

Risks

• Sluggish demand trends for testers used with mature semiconductors in automotive and industrial equipment applications
• Risk of customers revising capital expenditure plans due to geopolitical risks (US-China frictions, tightening export controls, etc.)
• Risk from sharp foreign exchange fluctuations (overseas sales ratio is high at 97.8%, resulting in a significant impact on performance when the yen appreciates)
• Risk of sharp demand adjustments due to fluctuations in the AI-related semiconductor investment cycle
• Risk of intensifying competition with other companies in the semiconductor tester market
• Risk of supply shortages across the entire supply chain (constraints on materials and product supply amid continued high-level demand)
• Risk of a slowdown in the global economy and increased logistics costs due to escalating tensions in the Middle East and other factors