Investors betting on the artificial intelligence boom have largely focused on chipmakers and semiconductor equipment manufacturers. But in Japan, some of the biggest beneficiaries of the AI wave are companies better known for making toilets, glass fiber and food seasoning.
According to CNBC, shares of Toto, Nittobo and Ajinomoto have rallied sharply this year as demand for AI infrastructure fuels growth in their lesser-known semiconductor-related businesses. While each company continues to operate its core business, decades of expertise in ceramics, advanced materials and chemical technologies have made them key players in the global AI supply chain.
Traditional Businesses Find New AI Opportunity
Toto, widely recognised for its bathroom products, manufactures electrostatic ceramic chucks used in semiconductor fabrication equipment. These components hold silicon wafers in place during chip production and are critical to manufacturing advanced semiconductors.
Its advanced ceramics division emerged as a key growth driver in the financial year ended March 31, with revenue rising 34% and operating profit increasing 42%. The gains helped offset weaker performance in its core housing equipment business.
Despite the momentum, Toto has said it has no plans to shift away from its established operations. Instead, it aims to maintain balanced growth across both segments, noting that its housing equipment business provides stability while the semiconductor industry remains cyclical.
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Advanced Materials Power AI Supply Chain
Nittobo, known historically for textiles and glass fiber, is also benefiting from rising AI-related demand. Its specialised glass materials are used in semiconductor package substrates and electronic components that power AI servers and data centre infrastructure.
Its electronic materials business reported a 20.4% increase in sales and a nearly 40% rise in operating profit during the last financial year, driven by strong demand linked to AI servers and data centres.
Management expects demand for specialised glass used in servers, networking equipment and semiconductor packaging to remain strong and plans to expand production capacity. At the same time, the company continues to explore new industrial applications for its legacy glass-fiber business.
From Food Ingredients To Semiconductor Packaging
Ajinomoto, best known globally for its MSG seasoning, has built a fast-growing semiconductor materials business through Ajinomoto Build-up Film (ABF), an insulating material used in advanced chip packaging.
Originally developed using technology derived from its amino acid research, ABF has become an essential material for high-performance AI processors and semiconductor packages used in data centres.
The company's Healthcare and Others segment, which includes electronic materials such as ABF, reported higher revenue and profit during the last financial year, supported by growing semiconductor demand. Ajinomoto expects continued expansion in high-value semiconductor applications while maintaining a balanced portfolio across its food and AminoScience businesses.
The performance of the three companies highlights how the AI investment cycle is extending well beyond chip designers and manufacturers. As demand for advanced semiconductors grows, firms supplying specialised materials and industrial technologies are emerging as some of the AI boom's biggest winners.
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