Japanese toilet maker Toto and seasoning giant Ajinomoto see gains from AI chip demand

The article reports that Toto makes electrostatic chucks used in NAND memory production and Ajinomoto supplies insulating materials for advanced semiconductor packaging; both companies saw recent share gains as AI-related chip demand rose.

The AI-driven surge in chip demand has drawn attention to some Japanese companies better known for consumer products. Toto, famous for its bidets, makes electrostatic chucks used in NAND memory-chip production. Ajinomoto, known for seasonings, produces insulating materials used in advanced semiconductor packaging. The article contrasts these firms with other suppliers that have signalled weaker demand. Key facts: - Toto makes electrostatic chucks, components used in the production of NAND memory chips, according to the article. - The article mentions that UK-based activist fund Palliser Capital took a stake in Toto and called it "the most undervalued and overlooked AI memory beneficiary," and that Toto's stock jumped more than 5% after the news; the article says Toto's shares are up over 54% in the past year. - Ajinomoto produces an insulating material for advanced semiconductor packaging, and the article reports its nine months to December showed an 8.9% rise in net profit and a 5.6% year-on-year increase in operating profit, partly driven by a segment that includes electronic materials; the article notes its stock rose about 13% after earnings and is up over 56% in the past year. - Daikin, which supplies high-purity chemical materials used in semiconductor manufacturing, trimmed its operating profit outlook by roughly 5% to ¥413 billion for the fiscal year ending March and reported a substantial year-on-year decline in operating profit; the article says Daikin's stock fell as much as 8.4% after those results. Summary: The article highlights that some consumer-facing Japanese firms are benefiting from the rise in AI-related chip demand because they supply specific parts or materials for semiconductors, while others in the supply chain have reported weaker conditions. It reports recent earnings, outlook changes and stock movements that market observers noted. Undetermined at this time.