TOWA, which has unique technology for equipment used in the resin encapsulation process of semiconductor manufacturing, is gaining ground in the industry thanks to the tailwind of the generative AI (artificial intelligence) boom. A next-generation machine focused on improving productivity is also under development.
In an interview with Bloomberg on March 26, President Hirokazu Okada said that demand for compression-based devices for broadband memory (HBM) used in AI semiconductors has increased rapidly since last summer, and that the demand for compression-based devices has increased rapidly since last summer. He said that he received orders for 22 units from Knicks and Samsung Electronics in the previous fiscal year (ended March 2024) alone.
TOWA President Okada (March 26th, Kyoto City)
Photographer: Shoko Takayasu/Bloomberg
The company’s equipment is used in the final stage of post-processing, cutting chips from wafers, connecting them to a substrate, and then sealing the chips with resin. In addition to the transfer molding method, in which molten resin is poured into the gap between the substrates, the company sells a compression molding method, in which semiconductors are soaked in the molten resin.
Mr. Okada expressed confidence, saying, “In high-end systems, especially for generative AI, our technology has received such high praise that it can only be done with our technology.” Full-scale production of HBM is expected to begin around 2025, and he says that “as a business, it’s still a long way off.”
For sealing equipment manufacturers,Apic Yamada(Chikuma City, Nagano Prefecture) and Singapore.ASM Pacific TechnologyAccording to Canadian consulting firm Tech Insights, TOWA had a 66% market share in 2022 in terms of value. Among them, there is no rival in the compression method, which is technically highly difficult.
Resin sealing device
Photographer: Shoko Takayasu/Bloomberg
Mitsuhisa Osawa, an analyst at Ichiyoshi Economic Research Institute, said that in the past there were manufacturers other than TOWA that tried to develop compression methods, but TOWA has suppressed the core patents and has deeply penetrated the customer base, making it difficult to imitate. “It’s like there’s nothing left,” he said.
The company is actively developing next-generation machines with the aim of further increasing productivity and halving costs. Mr. Okada predicts that mass production will take until around 2028, but says that he wants to make sure he doesn’t miss out on customer requests for how to make products at a lower price once quality is established.
high hurdle
The stock price, which was below 2,000 yen in April last year, has increased about five times in one year as the company has jumped on the generative AI bandwagon. Mr. Osawa believes that there is a short-term risk of a decline due to high market expectations, but “from the current business environment and technological competitive environment, there is not a very big risk.”
As for the stock price, Mr. Okada was happy to say, “I have gained a reassuring background as I plan my future strategy.” However, the sales target of 100 billion yen (for the fiscal year ending March 2032) envisioned by the company in its medium-term management plan is twice the company’s forecast for the fiscal year ending March 2024 of 51 billion yen, which is quite a hurdle.
According to Mr. Okada, the current production capacity is approximately 75 billion yen in terms of sales, and it is essential to increase it. Regarding this point, he said that this term, he will “take a serious look at how and what kind of factory we will build.”
Another issue is that the company’s performance is easily influenced by demand for semiconductors. From April to December 2023, while investment in HBM was active, demand for consumer products such as PCs and smartphones fell, and demand for related semiconductors slumped, resulting in lower sales and profits. Product mix will also be an important factor in achieving sales of 100 billion yen.
Related article
2024-04-07 23:44:00
#TOWA #leading #highperformance #semiconductors #generated #nextgeneration #machines #urgently #needed
