Ferrotec Holdings Corporation
6890・Standard Market・Electric Appliances
Semiconductor Equipment-Related Business
The largest segment centered on materials and parts cleaning for semiconductors and manufacturing equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales | ¥185,139 million | ¥165,245 million | ↑ |
| Operating Income | ¥16,048 million | ¥12,305 million | ↑ |
| Operating Margin | 8.7% | 7.4% | ↑ |
| Depreciation and Amortization | ¥21,323 million | ¥18,313 million | ↑ |
| Share of Consolidated Sales | 64.1% | 60.2% | ↑ |
Business Details
Provides vacuum seals, metal processing products for various manufacturing equipment, quartz products, ceramics products, CVD-SiC products, silicon parts, quartz crucible production, and equipment parts cleaning services. Major customers are semiconductor manufacturing equipment makers and device makers in the US, China, and Europe. FY2026 (ending March 2026) sales of ¥185,139 million account for approximately 64.1% of consolidated sales of ¥288,933 million, making it the core segment. Production facilities are deployed globally, including in Japan, China, and Malaysia.
Recent Overview
Sales up 12.0% and operating income up 30.4% on expanding AI investment and equipment demand
In FY2026 (ending March 2026), against a backdrop of continued robust generative AI investment and growing demand for semiconductor manufacturing equipment, vacuum seals, metal processing products, and ceramics products saw significant sales increases driven by higher orders from US and Chinese manufacturers. Quartz products and parts cleaning also grew on the back of recovering factory utilization rates. Improvements in factory utilization, profitability at new plants, and product mix contributed to a substantial increase in operating income, up 30.4% year on year to ¥16,048 million. On the other hand, CVD-SiC products saw a slight decline due to difficulties in ramping up the China plant, and quartz crucible sales also declined due to reduced shipments for solar applications.
Key Products
Growth Drivers
- Expanding demand for semiconductor manufacturing equipment driven by continued generative AI investment (upward revisions to WFE forecasts)
- Growing demand for consumables and parts driven by increased capital expenditure in memory manufacturing equipment from 2026 onward
- Improved profitability through higher factory utilization rates and improved profitability at new plants
- Capturing demand from Western and Chinese manufacturers through enhanced processing capacity
- Growth in the parts cleaning business through high-value-added cleaning services for advanced process nodes
- Diversification of production sites into Malaysia and Japan (Ishikawa, Kumamoto) to address regional customer strategies
Risks
- Profit pressure from continued high levels of depreciation and amortization associated with capacity expansion investment (¥21,323 million in FY2026, ending March 2026)
- Risk of deteriorating profitability in quartz crucible due to continued slump in the solar panel market
- Risk of delayed profit contribution from CVD-SiC products due to difficulties in ramping up the China plant
- Uncertainty in demand from China due to US-China semiconductor friction and US tariff policy impacts
- Elimination of sales and operating income recognition following the reclassification of the recycled wafer business as an equity-method affiliate
- Risk of fluctuations in the capital expenditure cycle in the semiconductor manufacturing equipment (WFE) market
Last updated: June 25, 2026