Japanese toilet maker Toto Ltd.’s stock shot up 11% recently after Goldman Sachs moved its rating from neutral to buy, noting the company’s chipmaking-related business—often overlooked—is doing well.
Known for high-tech toilets with bidets and heated seats, Toto has also been manufacturing electrostatic chucks since 1988.
The ceramics have a strength comparable to that of metals and withstand high heat. These materials are essential in holding silicon wafers in place during the production of NAND memory chips.
The AI boom has skyrocketed demand for semiconductors and subsequently boosted Toto’s chuck business, which already accounted for 42% of its operating income in the last fiscal year.
Toto’s success highlights a unique trend in Japanese manufacturing, where traditional consumer companies use their material expertise for tech applications.
MSG-maker Ajinomoto produces essential chip-insulating films, while cosmetics giant Kao Corp. runs a chip-cleaning business.