Toto boosts spending on ceramics used to make chips

Japanese home fixture manufacturer Toto also makes advanced ceramics used in the production of semiconductors. The firm is betting big on this arm of its business to see strong growth in the years ahead.

Toto is based in Kitakyushu City, southwestern Japan. The firm has leveraged its expertise in ceramics for home fixtures to create fine ceramics used in the production of chips, a sector that is growing quickly due to relentless demand for artificial intelligence and data centers.

Toto's ceramics business accounted for about a half of the group's operating profit for fiscal 2025, which ended in March. That amounted to 28.9 billion yen, or 182 million dollars.

The company plans to build a new research and development facility at its factory in Kanagawa Prefecture. It is also set to boost production capacity at its factories in Fukuoka and Oita Prefectures.

The head of Toto's public relations department, Kawahara Takuro, says the company sees a bright future for advanced ceramics.

He said: "There may be a major setback in the short term, but I think the trend will continue in the long run. I'm confident our ceramics business will continue to grow."

The company says total investment through fiscal 2028 will be about 30 billion yen, or 189 million dollars.

It says it is also considering some major investments beyond that point.