MICRONICS JAPAN CO.,LTD.

Business Details

In the wafer inspection process of semiconductor manufacturing, this segment develops, manufactures, and sells probe cards that connect testers to semiconductor chip electrodes on silicon wafers by contacting pins. It holds a competitive advantage in the memory segment, with Samsung Electronics and Micron Memory Taiwan as its principal customers. In addition to domestic manufacturing, the segment conducts global sales and maintenance through subsidiaries in China, South Korea, Taiwan, Singapore, and Europe. In the first quarter of FY2026 (ending March 2026, i.e. the three months ended March 2026), Probe Cards for Memory performed strongly amid continued demand in the HBM market, and the segment achieved a 51.0% year-on-year increase in net sales and an 85.4% increase in profit, supported by expanded production capacity.

Recent Overview

Probe Cards for Memory performed strongly on continued HBM demand, with net sales up 51% and profit up 85% year-on-year

In the first quarter of FY2026 (ending March 2026) (January to March 2026), Probe Cards for Memory performed strongly against a backdrop of continued demand in the HBM market. Supported by expanded production capacity, net sales reached ¥20,629 million (up 51.0% year-on-year), and segment profit reached ¥6,817 million (up 85.4% year-on-year), with the segment profit margin improving substantially to 33.1% from 26.9% in the same period of the prior year. The segment's share of consolidated net sales remained at 98.5%, maintaining its position as the core business. Research and development expenses increased year-on-year due to the continued promotion of technology development for the future.

Key Products

Growth Drivers

• Continued expansion of demand for HBM (High Bandwidth Memory) driven by the spread of generative AI
• Robust demand for GPUs and high-performance memory semiconductors driven by continued large-scale investment in data centers
• Strengthened order-response capability through expanded production capacity for Probe Cards for Memory
• Deep customer relationships with Samsung Electronics and Micron Memory Taiwan (together accounting for 71.3% of net sales)
• New customer acquisition and market expansion through MEMS-type probe cards for non-memory applications
• Growth outlook exceeding the company's forecast of 14% growth in the probe card market in 2026

Risks

• Risk of sales concentration in Samsung Electronics and Micron Memory Taiwan (together accounting for 71.3% of net sales)
• Delayed recovery in demand for probe cards in the NAND flash market
• Prolonged inventory adjustment in the non-memory segment for automotive semiconductors and industrial applications
• Risk of demand fluctuation due to sharp changes in semiconductor market conditions (the company uses a two-quarter-ahead forecast due to the difficulty of predicting full-year performance)
• Impact on the supply chain and customer demand from a resurgence of US-China trade and technology friction or geopolitical risk
• Risk of increased fixed costs and lower utilization rates due to expanded capital investment (net machinery, equipment, and vehicles increased by ¥1,802 million from the end of the previous fiscal year)

Business Details

The TE Business develops, manufactures, and sells testers, Wafer Prober (Manual/Semi-Auto) used in semiconductor inspection, Package Probes (Test Sockets) used for inspection after semiconductor chip mounting, and LCD Inspection Equipment. The business is supported by subsidiaries Micro-Star Electronics Co., Ltd. (Taiwan) (manufacturing and sales of LCD Inspection Equipment), MEK Co., Ltd., and Maijialu Microelectronics (Shanghai) Co., Ltd. (maintenance). The segment's share of consolidated net sales is extremely small, at approximately 1.5% (first quarter of FY2026 ending March 2026), and operating losses have continued.

Recent Overview

Semiconductor test sockets remained steady, but sales declined sharply and losses widened year-on-year

In the first quarter of FY2026 (ending March 2026), the TE Business recorded net sales of ¥316 million (down 31.4% year-on-year) and a segment loss of ¥310 million (compared to a loss of ¥96 million in the same period of the prior year), with sales declining and losses widening substantially. While semiconductor test sockets maintained steady sales, the segment as a whole came in significantly below the same period of the prior year. The sense of recovery in the automotive semiconductor and industrial application markets remains limited, and the turnaround of the business is still in progress.

Key Products

Growth Drivers

• Maintaining the revenue base of the contactor business through stable sales contribution from Package Probes (Test Sockets)
• Medium- to long-term sales expansion through the development and sales promotion of the new tester "Testalio" and manual prober "Excelyze"
• Strengthening customer relationships to promote sales of new products for semiconductor testing
• Continued strengthening of research and development and sales measures for test sockets and radio frequency (RF) probes
• Expansion of sales through continued support from overseas locations

Risks

• Net sales in the first quarter of FY2026 (ending March 2026) declined sharply by 31.4% year-on-year, and the outlook for demand recovery remains unclear
• The segment loss expanded sharply from ¥96 million in the same period of the prior year to ¥310 million, raising concerns about a deviation from the loss-reduction phase
• Risk that recovery in customer demand for the TE Business will be delayed due to prolonged inventory adjustment in the automotive semiconductor and industrial application markets
• Risk that the pace of loss reduction will slow if sales promotion of the new products "Testalio" and "Excelyze" does not proceed as planned
• Risk that the segment's extremely small share of consolidated net sales, at approximately 1.5%, represents a structural factor behind the continuation of losses due to an insufficient sales scale relative to the fixed cost burden