NITTO DENKO CORPORATION
6988・Prime Market・Chemicals
Industrial Tape
A stable-earnings segment providing base functional materials for smartphones, semiconductors, and automobiles
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Segment Total) | ¥366,607 million | ¥351,829 million | ↑ |
| Operating Profit | ¥51,662 million | ¥45,864 million | ↑ |
| Operating Margin | 14.1% | 13.0% | ↑ |
| Segment Assets | ¥343,802 million | ¥301,496 million | ↑ |
| Capital Expenditures (Increase in Property, Plant & Equipment and Intangible Assets) | ¥19,339 million | ¥18,795 million | ↑ |
| Depreciation and Amortization | ¥18,801 million | ¥18,451 million | ↑ |
Business Details
Manufactures and sells base functional materials such as bonding materials, protective materials, process materials, and Automotive Materials. Major customers include high-end smartphone manufacturers, semiconductor memory and ceramic capacitor manufacturers, and automobile manufacturers. The segment pursues a niche-top strategy centered on differentiated products such as Electric Debonding Tape for Battery Fixing and Process Materials (for Semiconductors & Electronic Components). In FY2026 (ending March 2026), both revenue and operating profit increased year on year, recording the highest profit growth rate within the group.
Recent Overview
Revenue and operating profit both increased on strong high-end smartphone and semiconductor demand, with operating margin improving to the 14% range
In FY2026 (ending March 2026), revenue was ¥366,607 million (up 4.2% year on year) and operating profit was ¥51,662 million (up 12.6% year on year). Growth was driven by the expansion of adopted models for Electric Debonding Tape for Battery Fixing used in high-end smartphones, and increased demand for Process Materials (for Semiconductors & Electronic Components) used for semiconductor memory and ceramic capacitors. On the other hand, Automotive Materials saw a revenue decline due to lower production volumes by Japanese automakers in China. For the next fiscal year, the company has decided on a large-scale investment of ¥39.0 billion in the Toyohashi Plant to further expand the debonding tape business.
Key Products
Growth Drivers
- Expansion of adopted models for Electric Debonding Tape for Battery Fixing used in high-end smartphones (demand expansion driven by mandatory Right to Repair regulations in Europe)
- Increased demand for Process Materials used for semiconductor memory and ceramic capacitors (semiconductor demand expansion driven by the spread of generative AI)
- Enhancement of debonding tape production capacity through the largest-ever investment of ¥39.0 billion in the Toyohashi Plant
- Sales expansion through new applications of process materials and improvement of overall profit margin in Industrial Tape
- Expanded adoption of differentiated products based on the niche-top strategy and establishment of a stable, high-margin business foundation
Risks
- Risk of revenue decline in Automotive Materials due to decreased production volumes by Japanese automakers in China
- Continued sluggishness in the Automotive Materials business due to stagnant growth in global automobile production volumes
- Risk of continued yen appreciation (in the current period, the yen appreciated 1.7% year on year to ¥150.2 per dollar, a factor that reduced group-wide operating profit by ¥81 million)
- Impact on demand and supply chains from changes in trade policy such as additional U.S. tariffs
- Risk of rising energy prices, increased logistics costs, and supply chain disruption due to escalating tensions in the Middle East
Last updated: June 17, 2026