Toto, a Japanese company known for bathroom fixtures, announced plans to invest 80 billion yen (about $495 million) over the next five years to expand its semiconductor materials business targeting next-generation 1-nanometer chip technology [1, 2, 3, 4]. The company’s semiconductor segment has grown to surpass its traditional bathroom fixtures business in profitability amid rising demand for AI chips [3, 4].
Since the 1980s, Toto has developed advanced semiconductor materials using sintered and aerosol deposition ceramic technologies that supply key parts for semiconductor equipment, including electrostatic chucks, where it holds over 70% of Japan’s market share [3, 4]. The semiconductor business achieved a 41.6% annual profit growth in the fiscal year 2025 and now provides half of Toto’s group profits [4].
Toto will upgrade and expand its two factories in Fukuoka Prefecture’s Buzen city and Oita Prefecture’s Nakatsu city. A new plant at the Buzen site is scheduled for completion in January 2027 [3]. The company has committed 39 billion yen of the planned investment so far, with the remaining funds dependent on market conditions [3, 4].
The targeted chips are advanced logic semiconductors with 1-nanometer line widths, following industry trends exemplified by TSMC’s roadmap moving beyond 2-nanometer technologies [3, 4]. Although Toto’s bathroom fixtures remain stable globally, sales in China dropped 18% year-on-year [4].
Toto expects to complete the full 80 billion yen investment by March 2030 [3].
