High-value products for HBM and DRAM are driving probe-card growth and margins

In FY2026-H1, the probe card business posted revenue of ¥48,542 million and segment profit of ¥18,290 million, a significant increase from revenue of ¥32,199 million and segment profit of ¥9,423 million in the same period of the previous fiscal year. Revenue rose 50.8% year on year and profit increased 94.1%, while the segment profit margin, calculated simply, was 37.7%, up approximately 8.4 percentage points from approximately 29.3% in the same period of the previous fiscal year. The key issue to reconfirm in FY2026-Q3 is that the business achieved not only higher revenue but also an improvement in profitability.

The company explained that revenue from DRAM applications remained strong against the backdrop of increased production capacity, while profitability also improved as high-value-added products for DRAM applications accounted for a larger share of the mix. In FY2026-Q2 alone, the probe card business generated revenue of ¥27,912 million and segment profit of ¥11,472 million, for a margin of approximately 41.1%. Q2 benefited from shipments shifted forward from the previous quarter, revenue brought forward as a result of increased production capacity, and contributions from high-value-added DRAM products. In Q3, the key question will be whether the business can maintain its margin even after the effect of the revenue pull-forward fades.

Although continued HBM demand is a strong tailwind, the disclosed figures do not allow the increase in revenue to be broken down into volume growth versus improvements in product pricing and mix. Because no amounts or ratios have been disclosed for the mix of high-value-added products, additional shipment volume from increased production capacity, capacity utilization, or pricing factors, the Q3 results will need to establish whether the higher mix of high-value-added products represents a temporary mix effect or a sustained improvement in profitability.

Consolidated operating profit in FY2026-H1 was ¥15,557 million, while research and development expenses increased to ¥3,906 million from ¥3,120 million in the same period of the previous fiscal year. As long as the core business maintains a high margin, it can absorb R&D investment, but if growth in HBM shipments slows, higher R&D and depreciation expenses could weigh on profitability. In Q3, the explanation of the mix for DRAM and HBM applications and equipment utilization should be considered together with probe card revenue, segment profit, and the profit margin.