KOKUSAI ELECTRIC, a leading semiconductor deposition equipment maker, achieved a sharp recovery in performance on the back of demand for generative AI applications, with revenue and operating profit increasing substantially in the first quarter of the fiscal year ending March 2027. The company also revised its full-year outlook upward.
Against a backdrop of sustained high demand for generative AI applications, KOKUSAI ELECTRIC reported revenue of ¥75.4 billion for the first quarter of the fiscal year ending March 2027, up 45.6% year on year, and operating profit of ¥15.9 billion, up 63.9%. The company made a major recovery from the slowdown a year earlier.
By application, revenue from DRAM applications increased 158% year on year, while revenue from logic semiconductors and foundries that undertake contract manufacturing increased 82%. Revenue from NAND flash memory applications, however, declined 34%. Demand for high-performance logic semiconductors and DRAM used in generative AI applications appears to have supported growth across the company.
The company also significantly raised its full-year forecasts, revising revenue from the previous forecast of ¥280 billion to ¥340 billion and operating profit from ¥54.5 billion to ¥79.4 billion. The extent to which demand for DRAM and logic semiconductors will continue will be a key focus.
Money Post WEB has published a ranking showing the profit growth rates of Japanese companies involved in AI and semiconductors over the three years ahead, with KOKUSAI ELECTRIC ranked fourth.