Company Reports

Kokusai focuses on the production and sales of wafer fabrication equipment, mainly in batch deposition, to semiconductor manufacturers globally. We expect rising precision requirements in chipmaking to generate strong growth momentum for the company over the next five years.

Kokusai Electric's June-quarter revenue of JPY 75 billion grew 46% year on year, while operating margin shrank 223 basis points to 21%. Management raised its fiscal 2026 revenue and operating margin guidance by 21% and 389 basis points, respectively.

Kokusai focuses on the production and sales of wafer fabrication equipment, mainly in batch deposition, to semiconductor manufacturers globally. We expect rising precision requirements in chipmaking to generate strong growth momentum for the company over the next five years.

We initiate coverage of Kokusai Electric, a Japanese wafer fabrication equipment, or WFE, company. It mainly produces equipment used in deposition, a key process in chipmaking, and is a market leader in batch deposition with a 49% global market share as of 2025.