The Japanese toilet manufacturer Toto is known for heated toilet seats and high-tech bidets. Less well-known: the company has been producing ceramic components for chip manufacturing since 1988.
Now demand is exploding—and the stock along with it.
The Details
Goldman analysts upgraded Toto to "Buy."
- The reason: Toto supplies specialized ceramic components that are essential for the production of high-end memory chips (NAND).
Toto’s semiconductor division already accounted for 42% of operating profit in fiscal year 2025—and the trend is rising. The stock gained 11%, its strongest increase in five years.
🔬 Good to know
Fine ceramics are lighter than metal, more heat-resistant, and do not cause electrical interference—ideal for chip production. Toto’s toilet know-how is paying off.
Toto is not alone. Traditional Japanese companies are occupying more and more AI niches:
- Ajinomoto: The world market leader for MSG seasoning produces the insulating films without which no modern high-performance chip functions.
- Kao: The cosmetics giant (facial cleansers) supplies the specialized chemical agents to clean wafers without residue after production.
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