Ushio Inc.

Business Details

This segment serves primarily the semiconductor, electronic device, and printed circuit board markets, providing Exposure Lamps, OA Equipment Lamps, Optical Equipment Lamps, Exposure Systems (Projection / Direct-write), EUV Light Source for EUV Lithography Mask Inspection, and Maintenance Services. It is positioned as a priority business under the new growth strategy "Revive Vision 2030," with expansion of growth in the semiconductor advanced packaging market identified as a strategic growth driver. The business operates globally, including domestic and overseas consolidated subsidiaries. From FY2026 (ending March 2026), the newly established subsidiary USHIO INE GmbH, resulting from the acquisition of ams-OSRAM AG's light source business, was added to the scope of consolidation.

Recent Overview

Revenue and profit both declined. Delayed demand recovery for exposure systems and expanded upfront investment weighed on profit

In the Industrial Process segment for FY2026 (ending March 2026), revenue was ¥77,142 million (down 2.3% year on year) and segment profit was ¥6,486 million (down 32.6% year on year). While Exposure Lamps and Optical Equipment Lamps saw increased revenue supported by demand related to generative AI semiconductors, revenue declined for projection exposure systems due to continued investment restraint for conventional data centers, and for EUV light sources due to lower maintenance revenue. On the profit side, in addition to the revenue decline, expanded upfront investment in digital lithography systems and other equipment, along with temporary valuation losses on stalled assets due to delayed recovery in exposure system demand, contributed to a significant decline in profit. Segment assets increased by ¥31,843 million year on year due to the acquisition of ams-OSRAM AG's light source business (establishment of USHIO INE GmbH).

Key Products

Growth Drivers

• Continued increase in sales of direct-write exposure systems (DLT) driven by expanding demand for generative AI-related semiconductors
• Increased orders and inquiries for projection exposure systems accompanying growth in the semiconductor advanced packaging market (recovery in capital expenditure by substrate manufacturers)
• Revenue growth effect across the light source business overall from the acquisition of ams-OSRAM AG's light source business (USHIO INE GmbH)
• Expansion of Optical Equipment Lamp sales driven by increased demand for OLED displays for smartphones and tablets
• Increasing trend of orders and inquiries from manufacturers related to digital lithography systems
• Growth and development investment and resource concentration as a priority business under the new growth strategy "Revive Vision 2030"

Risks

• Delay in the full-scale ramp-up timing of digital lithography systems (delayed adoption of large-substrate technology in the semiconductor market)
• Continued risk of recording valuation losses on stalled assets due to delayed recovery in exposure system demand
• Short-term profit pressure from expanded upfront investment (increased development costs and personnel expenses) related to exposure systems such as DLT
• Decline in maintenance revenue following the decision to discontinue some EUV mask inspection light sources
• Decline in demand for photo-alignment systems and related lamps due to continued weakness in the LCD panel market
• Foreign exchange impact on export revenue from continued yen appreciation (average rate for FY2026 (ending March 2026): ¥150/USD, ¥3 stronger year on year)
• Uncertainty in the market environment due to the impact of U.S. tariff measures and geopolitical risk
• Continued uncertainty in demand for electronic devices, including power semiconductors