TECH
Toilet giant Toto may hold the key to ending the RAM shortage
Toto, the Japanese company best known for its heated bidet toilets, is suddenly looking less like a bathroom brand and more like an unlikely beneficiary of the global RAM shortage. In a year when memory has become scarce, expensive, and generally annoying to anyone trying to buy a computer, the company has a semiconductor materials business that is riding a surge in demand tied to memory-chip production.
We doubt that business school case studies will look back on this crisis and say, “And then the toilet people saved the day,” but then again, here we are. Apparently, Toto’s advanced ceramics division makes components used in NAND memory chips, including electrostatic chucks that help hold wafers steady during manufacturing. As AI data centers expand, demand for memory chips has tightened, and that has quietly boosted Toto’s industrial side.
Toto is mainly known for its advanced toilets and sanitary ceramics. However, the company's expertise in ceramic production can also be applied to semiconductor manufacturing. Since the 1980s, Toto has made electrostatic chucks (e-chucks) indispensable in modern semiconductor manufacturing. According to Nikkei, operating profits from these products are expected to exceed $100 million this year.
In contemporary semiconductor manufacturing, electrostatic chucks (ESCs) securely hold a silicon wafer (or other substrate) in place using electrostatic forces rather than mechanical clamping or vacuum-based methods. The ESC is a key component in many steps of chip production, including EUV lithography steps, plasma etching, chemical vapor deposition (CVD), physical vapor deposition (PVD), and other steps requiring precise wafer positioning and minimal contamination.
While e-chucks have traditionally been used for CVD, PVD, and plasma etching, but not for DUV lithography steps as they are carried out in an ambient environment or immersion fluid, and therefore, a vacuum system under the wafer is good enough to maintain wafer flatness and position. However, with EUV, things are different. EUV lithography operates at very short 13.5nm wavelengths and requires a high-vacuum environment to prevent absorption of EUV light. Therefore, chipmakers use e-chucks instead of vacuum chucks as they are easier to use in such environments. Also, they can provide more uniform clamping force, reduce stress, minimize distortion, and improve overlay and critical dimension (CD) control.
It takes over 4,000 steps to process a wafer and make a chip. Usage of EUV steps has been increasing in recent years, just like steps requiring precise wafer positioning, so usage of ESCs has been on the rise, driving Toto's revenues and profits. Ceramics used for e-chucks must be both strong and resistant to cracking. Toto has developed materials with uniform properties, applying its expertise in molding and firing from its long history in toilet manufacturing. However, competition in this field is growing. In e-chucks, Toto faces Shinko Electric Industries, which has strong ties to chip equipment manufacturers and Applied Materials.
To strengthen its position, Toto has invested heavily in manufacturing. In 2020, the company spent ¥11.8 billion constructing a ceramics production facility in Oita, Japan. Between April 2020 and April 2024, it increased its ceramics production workforce by around 20%.
The image above shows electrostatic chucks used in high-precision industrial processes
Toto's ceramics business grew 34% year-over-year and accounted for 55% of Toto’s 53.8 billion yen, or about $343.5 million, in operating profit so far this year. The company expects the division to keep expanding, with roughly 27% growth projected next year. Moreover, the company says it will invest another 30 billion yen (about $192 million) over the next fiscal year to increase mass production and strengthen R&D.
For perspective, Toto is currently the world’s second-largest producer of electrostatic chucks (e-chucks) for NAND memory production. Stock markets have also taken notice. In January, Toto shares jumped as much as 11% after analysts highlighted the company’s chip-related prospects, calling out the potential for significant profit growth from the business. Investors who once would have lumped Toto in with slow-moving consumer and housing equipment firms are now being forced to look at it through a much more industrial, and much more semiconductor-shaped, lens.
In reality, Toto's increased contribution to memory production won't necessarily drive memory and gadget prices down, but who knows? For the company, the irony is almost too perfect, however. As the world runs short of memory, Toto remembers where the money is.
mundophone


