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Toto may be best known worldwide for its premium toilets and bathroom fixtures, but the Japanese company is quietly becoming a bigger player in the semiconductor supply chain.<\/p>\n
According to Nikkei Asia, Toto plans to invest US$495 million<\/b> over the next five years to expand its chip materials business<\/b>. The investment will fund new equipment at its Oita and Fukuoka facilities in Kyushu, boosting production capacity and supporting the development of technologies required for the next-generation 1nm chip manufacturing.<\/p>\n
The company is also keeping its options open. If demand continues to outpace supply, Toto is reportedly prepared to build an entirely new production facility to further expand output.<\/p>\n
For those unfamiliar with Toto\u2019s semiconductor ambitions, the company has been involved in the industry since the 1980s. Leveraging expertise developed through its ceramics and firing technologies, Toto began manufacturing electronic chucks<\/b>, which securely hold silicon wafers in place during chip fabrication.<\/p>\n
For many years, Toto\u2019s semiconductor business performed poorly. However, the AI boom has dramatically changed its fortunes. For the fiscal year ended March, Toto\u2019s semiconductor-related business recorded a 34% increase in sales<\/b>, while operating profit jumped a whopping 42%.<\/p>\n
In today\u2019s AI boom era, even a company famous for toilets wants a piece of the semiconductor boom. And with memory chip supply issues expected to persist until 2030, Toto is hoping its latest investment will help flush away at least a small part of the industry\u2019s supply crunch.<\/p>\n
Source: Nikkei Asia<\/p>\n<\/div>\n
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