Tekscend Photomask Corp. Overview
Tekscend Photomask is the world's largest merchant supplier of semiconductor photomasks, the patterned master plates that transfer circuit designs onto silicon wafers. Carved out of Toppan in 2022 with private equity firm Integral as co-investor, it listed in Tokyo in October 2025 in Japan's second-largest IPO of that year. It held 37.8% of the merchant market in 2024 on SEMI data. Its masks span leading-edge EUV development through high-volume mature nodes, built to customer order at a network of plants in Japan, Taiwan, Korea, China, the United States, Germany and France. Short lead times make local production essential, and Tekscend describes itself as the only mask maker with facilities in Europe, the US and Asia. Its investment case rests on outsourcing by captive mask shops, more masks per chip at advanced nodes, and new capacity in Singapore, Korea and Texas. Chinese price competition is the main counterweight.
What the company does. The Annual Securities Report (FY2026) describes the group as a manufacturer and seller of semiconductor photomasks. A photomask is a glass substrate that acts as the master for transferring a pattern in photolithography, and the company compares it to a photographic negative. Customers supply circuit pattern data. Tekscend writes that pattern with an electron beam or laser onto a mask blank, develops and etches it, then measures and inspects it against the customer's specification.
Group structure. The company, 13 consolidated subsidiaries and 2 equity-method affiliates make up a 16-company group. The filing states that the group is a leading company in the merchant photomask market through its worldwide service network, manufacturing sites in the main chip-demand regions, and EUV-level technology. It also says it is using microfabrication know-how to open new areas such as nanoimprint molds.
Business model. Every mask is custom and made to order, so the company has no standard catalogue in the usual sense. Order-to-delivery periods are so short that the company does not report order backlog, and its production value is treated as roughly equal to sales. Lead times are typically about two weeks for leading-edge masks and two to three days for legacy masks. Masks are bought in sets for each device, because each lithography layer needs its own mask, and sets normally go to a single vendor to protect overlay accuracy.
Revenue model. Revenue is overwhelmingly product sales of custom masks. Small contributions come from nanoimprint molds, stencil masks and royalties on jointly developed blank materials once those materials spread through the industry. There is no subscription revenue. Contract liabilities of JPY 4,884 million at 31 March 2026 show that some customers prepay, and the company says it holds long-term supply agreements with certain customers.
Value chain position. Tekscend sits between mask blank and equipment suppliers upstream and chipmakers downstream. It buys blanks, writers and inspection tools, many of which must be qualified by the customer. Those qualifications are themselves a switching cost, because a second vendor must match process settings already optimised for the incumbent.
Customer types and end-markets. Customers are foundries, which outsource all or most of their masks; IDMs, which make masks in-house but outsource overflow; fabless design houses, indirectly; and research institutions. Samsung Electronics was the only customer above the 10% disclosure threshold in FY2026, at JPY 15,063 million or 11.6% of revenue. Logic and other devices were 88% of FY2026 mask sales and memory 12%.
Independent characterisation. Tekscend is less a commodity materials business than a short-cycle, high-fixed-cost, design-driven service. Demand tracks the number of chip designs and new process introductions more closely than wafer volume, which the company itself notes makes it more sensitive to logic than to memory. Three facts define its economics: a depreciated legacy fleet that is expensive for newcomers to replicate; a reallocation system that keeps utilisation high across plants; and a captive EUV market that has barely opened to merchants. That last point is both the largest opportunity and the largest uncertainty, since the company's own 2025 forecast notice records TSMC and Samsung as producing most EUV masks in-house.
Strategy
Stated direction. The Mission, adopted 1 April 2025, is to "draw an innovative future with advanced microfabrication technology". The Vision is "Be the First Choice, Always", built on technology, shared value, and people and organisation. The Values are integrity, customer orientation, innovation born from diversity, a global outlook rooted in local communities, and continuous improvement.
Strategic themes in the Annual Securities Report (FY2026).
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Regional capacity. Invest where volume is expected to grow, especially the US and non-China Asia, and pursue long-term supply agreements. In China, follow a selective approach focused on profitability because decoupling and localisation policy have intensified competition.
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Technology leadership. Multibeam writers operate at Asaka and Dresden. The company is pursuing High-NA EUV blanks with blank makers, IBM process work and curvilinear masks, aiming to lead next-generation EUV.
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Legacy strength. Group-wide renewal planning, tool life extension, in-house maintenance and alternative parts developed with secondary vendors, which the company says give it a cost advantage over new entrants.
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Virtual "One" Factory. Automating inter-plant production transfers and applying AI scheduling so that eight sites run as one.
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New businesses. Nanoimprint master molds for AR glass waveguides and a contract nanoimprint service at Asaka.
Investment programme
Singapore plant: Investment: Part of FY2027 growth budget; IPO proceeds earmarked through FY2027; Timing: Groundbreaking 31 October 2025; production targeted first half of 2027; Purpose: Southeast Asia and India supply, with AI-based automated lines
Round Rock expansion: Investment: More than USD 223 million, with USD 15.2 million Texas grant; Timing: Advanced line targeted second half of 2027; Purpose: Capacity up more than 40%; capability extended to 12nm; about 50 jobs
Icheon third plant: Investment: Part of FY2027 growth budget; Timing: Completion 2027; 14nm-and-below production 2028–2029; Purpose: Korean AI and memory demand
EUV mass production readiness, Japan: Investment: Part of multibeam and EUV capex; Timing: 2027; Purpose: Merchant EUV outsourcing
Corbeil SLX1 laser writer: Investment: Not disclosed; Timing: Announced July 2025; Purpose: High-end laser capacity, replacing end-of-life tools
Asaka nanoimprint line: Investment: Not disclosed; Timing: From September 2025; Purpose: AR/MR optics
FY2027 capital plan (JPY M).
Growth (Singapore, Korea, US and other equipment): Budget: 48500
Legacy renewal: Budget: 6000
Other, including systems: Budget: 8500
Total: Budget: 63000
Cost and productivity. FY2027 guidance assumes margin gains from advanced mix and SG&A control, restrained legacy capex through life extension, and staff efficiency from automation and AI, partly offset by ERP upgrade costs.
Financial targets. Management uses revenue growth and operating margin as its key indicators and publishes annual guidance, not a multi-year numerical plan. For FY2027 it targets revenue of JPY 140,100 million, operating profit of JPY 29,800 million, operating margin of 21.3%, EBITDA margin of 34.2% and USD revenue growth of 12.6%. Its working market assumption is merchant mask growth of 8.7% a year to 2030. Dividend policy targets a payout of about 30%.
ESG commitments. Scope 1 and 2 CO2 emissions down 35.1% by FY2030 from FY2017; women at 15.0% of managers by FY2030; engagement score up four points a year; and adherence to the RBA Code of Conduct.
Products & Services
All products are built to customer specification, and no list pricing is published. Pricing depends on node, layer criticality and set size, and the filing notes that set prices rise with miniaturisation.
Photomask Business Area
Photomasks for Various Applications
General specifications: 4, 5, 6, 7 and 9 inch mask formats and 200mm wafer format; GDS, GBR or design-diagram data; synthetic quartz or soda-lime glass, thickness 0.09–0.25 inch; pellicle mounting available.
New Business Area
Product Portfolio
| Product | Description and capabilities | Target customers | Status and notes |
|---|---|---|---|
Binary masks | Simple opaque pattern on a blank, transmitting or blocking light; used where line width exceeds exposure wavelength | Mature and mid-range logic, analog, power | Long-established |
OMOG binary masks | Opaque MoSi on Glass blanks co-developed with a blank vendor, replacing chrome for better dimensional performance and resolution | Advanced binary layers | Now widely sold through the co-developer, an industry-wide adoption the company cites as proof of its materials strategy |
Phase-shift masks, attenuated (halftone) | Semi-transparent film with 180-degree phase difference improves resolution and depth of focus | Sub-wavelength lithography, standard at advanced optical nodes | New phase-shift blanks co-developed for transfer quality and long life |
Phase-shift masks, alternating (Levenson) | Phase difference created by a transparent film or by etching the glass | Critical optical layers | Established technology |
EUV photomasks | Reflective masks for 13.5nm-class EUV exposure: a multilayer reflector with a patterned absorber on top | 7nm and below; Low-NA production, High-NA development | R&D since the early 2000s; the filing says volume capability has been established. Next-generation materials for 1.x nm nodes shown at SEMICON Japan in December 2025 |
Curvilinear-capable masks | Curved mask patterns that reflect wafer optics; enabled by multibeam writing | Advanced optical and EUV layers | In development and production application |
Mask maintenance know-how | HAZE suppression and cleaning to preserve mask life at customer fabs | All high-volume customers | Value-added service; HAZE is growth of haze defects under repeated exposure |
| Product | Description and capabilities | Target customers |
|---|---|---|
MEMS masks | Masks for microelectromechanical devices | Sensor and MEMS makers |
IC bump packaging masks | Masks for bump formation | OSAT and packaging |
Semiconductor packaging substrate masks | Masks for substrate patterning | Substrate makers |
Microlens array masks | Masks for optical arrays | Image sensor and optics makers |
LED masks | Masks for LED manufacture | LED makers |
Thermal head masks | Masks for printing heads | Thermal head makers |
Tool accuracy control masks | Masks for equipment calibration | Equipment users |
Test masks | OEM qualification and research; chromium basic-shape patterns on high-purity glass | Equipment makers, resist evaluation |
Master masks for high-resolution printing | Masters for fine printing | Printing users |
R&D masks | Masks for assorted research | Universities and institutes |
3D masks (gray-scale, gray-tone) | Variable transmission across the mask to form three-dimensional structures | Microlens and optical structure makers |
| Product | Description and capabilities | Target customers | Status and notes |
|---|---|---|---|
Quartz nanoimprint molds | Mainly UV nanoimprint; substrate 152 x 152 x 6.35 mm; tens-of-nanometre patterns; multi-step structures | Optics and photonics | Uses mask-grade quartz |
Silicon nanoimprint molds | Mainly thermal nanoimprint; 200mm diameter, 725 μm thick; high aspect ratio and complex 3D shapes | Optics and photonics | Round 200mm molds displayed at SEMICON Japan 2025 |
3D master molds | Slanted and blazed structures for AR glass waveguides | AR/MR headset makers | Production set up in Japan and Europe |
Nanoimprint prototyping service | EV Group HERCULES NIL 200mm at Asaka; 100–200mm round substrates; design simulation through volume production | Metalens and AR optics developers | Domestic prototyping scheduled from September 2025; company calls itself the first merchant mask shop to offer it |
Silicon stencil masks | Nanoscale through-holes for electron-beam lithography | Advanced mask and research users | Supply system established |
Financial Narrative
FY2023 is the first full year of operations. The company reported no revenue in its first stub term to March 2022, so four operating years exist under IFRS. Sources are the Annual Securities Report (FY2026), the FY2026 financial results and the IPO registration statement.
Income statement
Revenue CAGR from FY2023 to FY2026 was 8.7%.
Revenue and margin commentary. Revenue has grown every year, reaching a record in FY2026. FY2023 stands out because depreciation of JPY 8,480 million was unusually low. It almost doubled in FY2024, when an impairment of JPY 2,580 million also hit, cutting operating margin by ten points. FY2025 recovered as advanced mix improved. FY2026 revenue rose 9.8%, but operating profit slipped 2.4% on higher material costs, depreciation up 21.3% and one-time listing costs. Adjusted operating profit was flat at JPY 28,407 million. That is the key reading of the year: yen weakness and growth did not convert into adjusted profit because of the investment cycle.
Net profit distortions. FY2025 net profit was depressed by JPY 14,468 million of tax one-offs: JPY 6,247 million of capital gains tax from the group reorganisation and JPY 8,221 million from reassessing deferred tax assets at European subsidiaries. Adjusted net profit that year was JPY 24,601 million. FY2026's 150.9% headline jump is therefore mostly a base effect. Adjusted net profit rose 3.9%. FY2026 also benefited from finance income of JPY 7,151 million, which included currency swap valuation gains. Management expects that income to fall in FY2027, which is why it forecasts net profit down 5.0% despite higher operating profit.
Quarterly progression
The dollar series is the telling one. Q1 FY2027 revenue rose 14.8% in yen but only 2.7% in dollars. The company said it struggled to win share at some large customers and offset this with other accounts and a weaker yen. Net profit fell 3.2% because of withholding tax on dividends from overseas subsidiaries. Q2 and Q3 FY2026 dollar revenue is derived from yen revenue and the reported average rate.
Balance sheet
Other financial liabilities, which include lease obligations, totalled JPY 14,138 million at 31 March 2026. At 30 June 2026, cash was JPY 50,105 million, borrowings JPY 1,257 million, total assets JPY 229,957 million and equity JPY 177,493 million, a 77.2% equity ratio.
Balance sheet commentary. Cash fell by JPY 35,571 million in FY2025, when the company paid JPY 27,000 million to shareholders before the IPO and spent heavily on plant. It recovered in FY2026 through JPY 19,992 million of IPO proceeds, operating cash flow and JPY 3,063 million of currency translation. There is effectively no goodwill. Total assets rose JPY 62,973 million in FY2026, helped by a weaker yen: translation gains added JPY 13,552 million to other comprehensive income. Borrowings peaked at JPY 10,064 million at 30 September 2025 and were repaid mostly from IPO funds.
Cash flow
Operating cash flow in FY2023 was JPY 43,335 million. Capex was JPY 33,236 million in FY2026, of which JPY 33,207 million was cash paid for property, plant and equipment; the FY2025 cash figure was JPY 30,691 million. Q1 FY2027 operating cash flow was JPY 11,578 million, investing cash flow JPY -7,270 million and the JPY 5,510 million final dividend was paid. FY2026 operating cash flow included a JPY 5,037 million adverse movement in derivatives.
Cash flow commentary. The business is highly cash generative before growth spending, with EBITDA above capex in every quarter since Q2 FY2026. But investing has absorbed nearly all operating cash for two years, and planned FY2027 capex of JPY 63,000 million is 1.3 times trailing EBITDA. Negative free cash flow in FY2027 is the natural outcome if the plan is executed, although Q1 spending was just 11.8% of the annual figure.
Ratios
ROIC uses operating profit after 30% notional tax over year-end equity plus borrowings less cash, excluding leases. Working-capital days use year-end balances, and receivables and payables are "trade and other". Finance costs include non-interest items; interest expense itself was only JPY 732 million in FY2026.
Ratio commentary. ROIC has halved in three years as assets under construction outpace profit, and this is the metric to watch. The capital base rose 39% in FY2026 alone while adjusted operating profit was flat. The cash conversion cycle also lengthened, mainly because receivables grew with a weaker yen and payables shrank relative to cost of sales. Solvency is not a concern.
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View Subscription PlansFinancial Detail
Revenue by Segment and Segment Margins & Growth (%)
| Single segment (JPY Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Revenue | 107,086 | 117,974 | 129,576 |
Operating profit | 19,827 | 28,199 | 27,530 |
Operating margin (%) | 18.5 | 23.9 | 21.2 |
Revenue growth (%) | 6.3 | 10.2 | 9.8 |
Share of group revenue (%) | 100 | 100 | 100 |
Revenue by Segment (%)
| Node mix (% of mask sales) | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 |
|---|---|---|---|---|---|
Advanced (28nm and below) | 29 | 36 | 36 | 36 | 35 |
Mid-range and mature (above 28nm) | 71 | 64 | 64 | 64 | 65 |
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View Subscription PlansRevenue by Segment (%) by Application Mix
| Application mix (% of mask sales) | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 |
|---|---|---|---|---|---|
Logic and other | 88 | 87 | 90 | 85 | 89 |
Memory | 12 | 13 | 10 | 15 | 11 |
Subsidiary, FY2026 Details
| Subsidiary, FY2026 (JPY Mn) | Revenue | Operating profit | Net profit | Total assets | Net assets |
|---|---|---|---|---|---|
Tekscend Photomask Chunghwa (Taiwan) | 39,684 | 15,211 | 12,741 | 51,019 | 41,033 |
Tekscend Photomask Round Rock (US GAAP) | 25,290 | 1,524 | 1,041 | 25,263 | 6,145 |
Tekscend Photomask Korea | 23,040 | 4,993 | 4,005 | 18,193 | 11,780 |
Tekscend Photomask Company Limited, Shanghai Xuhui | 19,701 | 1,702 | 1,942 | 26,940 | 21,024 |
Principal Consolidated Entities Details
| Principal consolidated entities | Location | Ownership (%) |
|---|---|---|
Tekscend Photomask US Inc. | Texas | 100 |
Tekscend Photomask Round Rock Inc. | Texas | 100 (indirect) |
Tekscend Photomask North America Inc. | Texas | 100 |
Tekscend Photomask Germany GmbH | Saxony | 100 |
Tekscend Photomask GmbH (dormant) | Saxony | 100 |
Tekscend Photomask France S.A.S. | Essonne | 100 |
Tekscend Photomask Korea Inc. | Icheon | 100 |
Tekscend Photomask Singapore Pte. Ltd. | Singapore | 100 |
Tekscend Photomask Chunghwa Inc. | Taoyuan | 100 |
Shanghai Xuhui entity | Shanghai | 100 |
Tekscend semiconductor materials (Shanghai) entity | Shanghai | 100 (indirect) |
Tekscend Photomask HK Company Limited | Hong Kong | 100 (indirect) |
Tekscend Photomask Cayman Inc. | Cayman Islands | 100 |
Advanced Mask Technology Center GmbH & Co. KG (equity method) | Saxony | 50 (indirect) |
Maskhouse Building Administration GmbH & Co. KG (equity method) | Saxony | 50 (indirect) |
Income Statement and Per-Share Data
| Metric (JPY Mn unless stated) | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Revenue | 100,782 | 107,086 | 117,974 | 129,576 |
Cost of sales | 61,068 | 75,511 | 76,846 | 86,306 |
Gross profit | 39,714 | 31,575 | 41,128 | 43,269 |
SG&A | 10,468 | 11,841 | 12,903 | 14,501 |
R&D | 473 | 559 | 797 | 1,238 |
Operating profit | 28,680 | 19,827 | 28,199 | 27,530 |
Adjusted operating profit | 28,832 | 22,504 | 28,469 | 28,407 |
Depreciation and amortisation | 8,480 | 15,876 | 15,240 | 18,486 |
EBITDA | 37,548 | 36,242 | 43,947 | 46,567 |
Adjusted EBITDA | 37,700 | 38,919 | 44,217 | 47,444 |
Profit before tax | 29,366 | 22,901 | 30,771 | 33,432 |
Income tax | 7,206 | 6,796 | 20,825 | 8,484 |
Net profit attributable to owners | 22,159 | 16,105 | 9,945 | 24,947 |
Adjusted net profit | 22,265 | 17,963 | 24,601 | 25,556 |
Basic EPS (JPY) | 221.60 | 161.05 | 104.16 | 261.12 |
Diluted EPS (JPY) | 221.48 | 159.59 | 101.22 | 256.97 |
Dividend per share (JPY) | 0 | 90 | 0 | 56 |
Gross margin (%) | 39.4 | 29.5 | 34.9 | 33.4 |
Operating margin (%) | 28.5 | 18.5 | 23.9 | 21.2 |
EBITDA margin (%) | 37.3 | 33.8 | 37.3 | 35.9 |
Net margin (%) | 22.0 | 15.0 | 8.4 | 19.3 |
Income Statement and Margin Analysis (%)
| Metric (JPY Mn unless stated) | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 |
|---|---|---|---|---|---|
Revenue | 30,076 | 31,695 | 34,462 | 33,341 | 34,518 |
Revenue (USD Mn) | 209.2 | 213.7 | 221.7 | 213.0 | 214.8 |
Gross profit | 9,811 | 11,088 | 10,749 | 11,619 | 11,464 |
Gross margin (%) | 32.6 | 35.0 | 31.2 | 34.8 | 33.2 |
Operating profit | 5,875 | 7,020 | 7,028 | 7,605 | 7,360 |
Operating margin (%) | 19.5 | 22.2 | 20.4 | 22.8 | 21.3 |
Net profit | 5,475 | 6,874 | 6,652 | 5,944 | 5,300 |
Depreciation | 4,167 | 4,666 | 5,389 | 4,263 | 4,725 |
EBITDA | 10,167 | 11,821 | 12,570 | 12,007 | 12,228 |
Capex | 13,606 | 6,775 | 7,711 | 5,141 | 7,418 |
Average USD/JPY | 143.75 | 148.34 | 155.46 | 156.51 | 160.72 |
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View Subscription PlansBalance Sheet
| Metric (JPY Mn) | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Total assets | 157,963 | 189,906 | 167,752 | 230,725 |
Cash and equivalents | 45,698 | 63,286 | 27,715 | 51,552 |
Trade and other receivables | 22,335 | 25,862 | 27,668 | 32,610 |
Inventories | 2,787 | 3,269 | 3,825 | 4,807 |
Current assets | 75,332 | 95,777 | 64,082 | 97,369 |
Property, plant and equipment | 63,315 | 72,836 | 87,919 | 109,074 |
Goodwill and intangibles | 169 | 119 | 219 | 170 |
Current liabilities | 25,288 | 33,015 | 33,314 | 34,582 |
Short-term borrowings | 0 | 0 | 399 | 1,460 |
Long-term borrowings | 0 | 0 | 399 | 0 |
Total borrowings | 0 | 0 | 798 | 1,460 |
Net debt (excluding leases) | -45,698 | -63,286 | -26,917 | -50,092 |
Total equity | 110,604 | 137,709 | 116,381 | 174,507 |
Working capital | 50,044 | 62,762 | 30,768 | 62,787 |
Cash Flow
| Metric (JPY Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Operating cash flow | 28,638 | 26,227 | 36,061 |
Investing cash flow | -13,896 | -32,885 | -35,150 |
Free cash flow (operating plus investing) | 14,742 | -6,658 | 911 |
Financing cash flow | -1,608 | -28,536 | 19,862 |
Dividends paid | 0 | 9,000 | 0 |
Share buybacks | 0 | 18,000 | 0 |
Proceeds from share issue | 0 | 0 | 19,992 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
ROE (%) | 22.9 | 13.0 | 7.8 | 17.2 |
ROIC at 30% notional tax (%) | 30.9 | 18.6 | 22.1 | 15.5 |
Current ratio (x) | 2.98 | 2.90 | 1.92 | 2.82 |
Equity ratio (%) | 70.0 | 72.5 | 69.4 | 75.6 |
Borrowings to equity (x) | 0.00 | 0.00 | 0.01 | 0.01 |
Net cash to EBITDA (x) | 1.22 | 1.75 | 0.61 | 1.08 |
Operating profit to finance costs (x) | 94.3 | 62.7 | 20.9 | 15.3 |
Days sales outstanding | 80.9 | 88.1 | 85.6 | 91.9 |
Days inventory | 16.7 | 15.8 | 18.2 | 20.3 |
Days payable | 83.5 | 94.4 | 90.7 | 80.6 |
Cash conversion cycle (days) | 14.1 | 9.5 | 13.0 | 31.6 |
Returns & Leverage Ratios (%) and Financial Ratios (x) (FY2024–FY2026)
| Ratio | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
ROA on average assets (%) | 9.3 | 5.6 | 12.5 |
Asset turnover (x) | 0.62 | 0.66 | 0.65 |
Revenue by destination (JPY Mn)
| Revenue by destination (JPY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
China | 28,984 | 35,123 | 34,520 |
United States | 16,115 | 16,100 | 20,371 |
Taiwan | 17,447 | 16,367 | 18,914 |
Europe | 11,081 | 12,969 | 15,482 |
Korea | 12,460 | 13,164 | 15,000 |
Japan | 8,210 | 7,642 | 8,123 |
Other | 6,482 | 5,718 | 5,561 |
Total | 100,782 | 107,086 | 117,974 |
Growth by destination (%)
| Growth by destination (%) | FY2024 | FY2025 |
|---|---|---|
China | 21.2 | -1.7 |
United States | -0.1 | 26.5 |
Taiwan | -6.2 | 15.6 |
Europe | 17.0 | 19.4 |
Korea | 5.7 | 13.9 |
Japan | -6.9 | 6.3 |
Other | -11.8 | -2.7 |
First-half revenue (JPY Mn)
| First-half revenue (JPY Mn) | H1 FY2025 | H1 FY2026 |
|---|---|---|
China | 19,744 | 16,308 |
United States | 10,456 | 11,040 |
Korea | 7,184 | 9,421 |
Taiwan | 8,365 | 8,907 |
Europe | 6,315 | 5,923 |
Japan | 3,719 | 5,317 |
Other | 3,730 | 4,853 |
Total | 59,516 | 61,771 |
Share of revenue, USD basis (%)
| Share of revenue, USD basis (%) | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | FY2026 | Q1 FY2027 |
|---|---|---|---|---|---|---|
China | 27 | 27 | 27 | 30 | 28 | 30 |
United States | 18 | 20 | 19 | 19 | 19 | 21 |
Taiwan | 14 | 16 | 16 | 15 | 15 | 12 |
Korea | 13 | 15 | 15 | 11 | 13 | 12 |
Europe | 10 | 8 | 10 | 10 | 10 | 11 |
Japan | 11 | 7 | 8 | 8 | 8 | 7 |
Other, including Singapore | 7 | 7 | 6 | 7 | 7 | 7 |
Share Price & Returns
| Date | Close (JPY) |
|---|---|
IPO price, 16 October 2025 | 3,000 |
First-day close, 16 October 2025 | 3,380 |
31 March 2026 | 2,946 |
30 April 2026 | 4,070 |
29 May 2026 | 4,595 |
30 June 2026 | 4,330 |
31 July 2026 | 3,935 |
28 August 2026 | 3,740 |
18 September 2026 | 3,770 |
30 October 2026 | 3,160 |
2 November 2026 | 3,110 |
Valuation Snapshot
| Multiple | Value |
|---|---|
Market capitalisation (JPY Mn) | 308,997 |
Enterprise value, excluding leases (JPY Mn) | 260,149 |
P/E, trailing | 12.4 |
P/E, FY2027 guidance on current shares | 13.0 |
EV/EBITDA, trailing to June 2026 | 5.3 |
EV/Sales, trailing | 1.9 |
P/B | 1.74 |
Dividend yield, FY2027 forecast (%) | 2.25 |
Capital Markets
| Measure | Value |
|---|---|
Revenue FY2027 consensus (JPY Mn, 30 September 2026) | 146,664 |
Operating profit FY2027 consensus (JPY Mn) | 32,973 |
Pre-tax profit FY2027 consensus (JPY Mn) | 35,023 |
Net profit FY2027 consensus (JPY Mn) | 25,966 |
Mean price target (JPY, September 2026) | 4,980 |
Coverage | 5 analysts, consensus Buy (August 2026) |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2024 | FY2025 | FY2026 | FY2027 forecast |
|---|---|---|---|---|
Dividend per share (JPY) | 90 | 0 | 56 | 70 |
Payout ratio (%) | 0 | 0 | 21.4 | 29.3 |
Analyst Conclusions
Management guidance, FY2027.
Revenue (JPY M): FY2026 actual: 129576; FY2027 guidance: 140100; Q1 FY2027: 34518; Q1 progress (%): 24.6
Operating profit (JPY M): FY2026 actual: 27530; FY2027 guidance: 29800; Q1 FY2027: 7360; Q1 progress (%): 24.7
Pre-tax profit (JPY M): FY2026 actual: 33432; FY2027 guidance: 31200; Q1 FY2027: 8127; Q1 progress (%): 26.1
Net profit (JPY M): FY2026 actual: 24947; FY2027 guidance: 23700; Q1 FY2027: 5300; Q1 progress (%): 22.4
Assumed USD/JPY: FY2026 actual: 151.09; FY2027 guidance: 145.00; Q1 FY2027: 160.72; Q1 progress (%): 0
Consensus sits above guidance on every line, reflecting the conservative exchange rate. Guidance has been left unchanged even though the yen ran about 11% weaker than assumed in Q1, which leaves room for a yen-denominated upgrade. The real test is dollars: guidance implies USD 966 million, and after Q1 the remaining quarters would need about USD 250 million each, 17% above the Q1 level. At today's yen rate the yen targets can be met without anything like that. A revision is therefore likely to flatter the yen numbers while cutting the dollar plan.
Bull case.
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Outsourcing inflection: memory makers and EUV users are short of internal resources, which could lift the merchant market above its 8.7% forecast path, and Tekscend has the largest merchant capacity to absorb it.
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New capacity arrives in the right places: Singapore, Round Rock and Icheon come on in 2027–2029 close to demand, with advanced mix expanding margins from the current 21.3%.
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Valuation: 5.3 times EV/EBITDA and 1.74 times book, with net cash, price in much of the China risk and leave room for a re-rating if USD growth recovers.
Bear case.
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Merchant EUV may arrive late or not at all: the largest customers keep masks in-house, leaving capex of JPY 63,000 million a year tied up in low returns.
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China deflation spreads: China is 30% of sales, and localisation policy threatens both volume and price at thin entity margins.
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Quality of earnings has flattered the picture: yen weakness and swap gains have masked flat dollar revenue, and a stronger yen plus rising depreciation would squeeze profit just as new plants start.
Key catalysts and monitorables (next 12 months).
11 November 2026 (scheduled): Item: H1 FY2027 results; What to watch: USD revenue growth, guidance revision, large-account comments
By March 2027: Item: FY2027 capex delivery; What to watch: Whether JPY 63,000 million is spent or deferred
First half of 2027: Item: Singapore start-up; What to watch: Customer qualification and depreciation
Second half of 2027: Item: Round Rock advanced line; What to watch: Move to 12nm
2027: Item: EUV mass-production readiness; What to watch: First disclosed volume customers
May 2027: Item: FY2027 results and FY2028 guidance; What to watch: Margin after new depreciation; possible medium-term plan
Ongoing: Item: TOPPAN stake; What to watch: Any sell-down or strategic change
Ongoing: Item: China policy and export controls; What to watch: Impact on Shanghai and customers
Analyst verdict. Tekscend is a real franchise that has entered public markets at a demanding moment. It leads a small, necessary market with entry barriers built from qualification, data and customer proximity, and it produces EBITDA margins in the mid-30s with almost no debt. Those strengths are not in dispute.
The dispute is over conversion. Over three years, revenue has compounded at 8.7%, but adjusted operating profit is lower than in FY2023, and invested capital has nearly doubled. Part of that is deliberate: a heavy investment cycle in EUV, new sites and tools that will not earn fully until 2027 or later. Yet the most recent evidence is not encouraging. Dollar revenue grew only 2.7% in the June quarter, the company acknowledged difficulty with some large accounts, and peer Photronics shows a similar flat dollar trend, suggesting the market is less buoyant than yen numbers imply.
The shares have absorbed much of this. At about 13 times guided earnings and just over 5 times EBITDA, with a 2.25% yield and net cash of about a sixth of market value, the price no longer assumes an outsourcing boom. It requires only that the mature business holds and that new plants earn adequate returns.
The balance of evidence favours a patient, conditional positive view. Three markers would confirm it: USD revenue growth back near double digits, a named merchant EUV ramp, and ROIC stabilising as capacity fills. Failure on the first two by mid-2027 would argue that the capex programme is ahead of demand, and that today's low multiples are deserved. TOPPAN's 46.55% holding, which is neither a parent stake nor a clearly passive one, remains the main unresolved question for minority holders.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Position | Background |
|---|---|---|
Teruo Ninomiya | Representative Director, President & CEO; Nominations & Remuneration Committee member | Led the company through the carve-out, rebrand and IPO |
Michael G. Hadsell | Director, Executive Officer, COO | Highest-paid officer |
Seiichi Itoga | Director, Executive Officer, CFO | Finance lead and IR contact |
Takashi Kurobe | Director | Director and Senior Managing Executive Officer, CFO of TOPPAN Holdings; TOPPAN's nominee |
Tadahiro Suhara | Independent Director; Nominations & Remuneration Committee member | Semiconductor industry and corporate management experience |
Chiharu Tokoro | Independent Director; Nominations & Remuneration Committee member | Resource-recycling engineering and separation technology expertise |
Elvis Deng (Deng Maosong) | Independent Director | Long semiconductor industry and management experience |
Kaoru Nozaki | Audit & Supervisory Board Member | Former head of the Management Audit Office; appointed June 2026 |
Takeshi Motomura | Independent Audit & Supervisory Board Member | Attorney |
Fumiko Kosao | Independent Audit & Supervisory Board Member | Tax accountant; appointed June 2026 |
Chan-Uk Jeon | Executive Officer, CTO | Technology lead |
Nobuyuki Iijima | Executive Officer, CHRO | Human resources lead |
Tadashi Ishimatsu | Executive Officer, Asia Region President | Asia operations |
Arthur Kuo | Executive Officer, CBO | Business lead |
Andrew Liu | Executive Officer, Deputy CFO | Finance |
Directors' Remuneration
| Category (JPY Mn) | Total | Fixed | Performance-linked | People |
|---|---|---|---|---|
Directors excluding outside | 388 | 120 | 267 | 6 |
Auditors excluding outside | 0 | 0 | 0 | 1 |
Outside officers | 51 | 51 | 0 | 9 |
Individuals paid JPY 100M or more (JPY Mn) | Total | Fixed | Performance-linked | — |
Michael G. Hadsell | 217 | 79 | 138 | — |
Teruo Ninomiya | 118 | 26 | 92 | — |
Major Shareholders
| Rank | Holder | Shares | Holding (%) |
|---|---|---|---|
| 1 | TOPPAN Holdings Inc. | 46,237,901 | 46.55 |
| 2 | The Master Trust Bank of Japan (trust account) | 6,873,000 | 6.91 |
| 3 | Qatar Holding LLC | 4,600,641 | 4.63 |
| 4 | CEPLUX - The Independent UCITS Platform 2 | 2,232,600 | 2.24 |
| 5 | The Chase Manhattan Bank, N.A. London Secs Lending Omnibus Account | 1,436,700 | 1.44 |
| 6 | Custody Bank of Japan (trust account) | 1,385,200 | 1.39 |
| 7 | Northern Trust Co. (AVFC) Re UKUC UCITS Clients Non Lending 10PCT Treaty Account | 1,322,200 | 1.33 |
| 8 | State Street Bank and Trust Company 505025 | 1,131,704 | 1.13 |
| 9 | Masahiro Miki | 1,116,300 | 1.12 |
| 10 | Integral Corporation | 849,633 | 0.85 |
Competitive Landscape
Key Competitors
| Competitor | Type | Position relative to Tekscend |
|---|---|---|
Photronics (US; includes PKL in Korea and JVs with DNP) | Merchant, IC and FPD | Closest global peer, investing in the US and Korea; PKL competes directly for Samsung outsourcing |
Dai Nippon Printing (Japan) | Merchant | Tekscend's main Japanese rival; investor in Rapidus and developer of 2nm-generation EUV masks targeting 1.4nm and beyond |
TSMC (Taiwan) | Captive | Makes most of its masks in-house; the largest non-accessible demand pool |
Samsung Electronics (Korea) | Captive and customer | In-house EUV; outsources lower layers; 11.6% of Tekscend revenue |
Intel (US) | Captive | In-house for advanced nodes; candidate for overflow |
SMIC (China) | Captive | Domestic capacity |
Chinese merchant suppliers, including Longtu Photomask and Newway (Qingyi) | Merchant | State-backed price challengers in mature nodes |
Taiwan Mask Corporation (Taiwan) | Merchant | Mature and mid-range supplier; monthly revenue near TWD 0.5–0.6 billion in mid-2025 |
SK-Electronics (Japan) | Merchant | Focused on large FPD masks; limited overlap |
Hoya (Japan) | Blanks | Upstream supplier of EUV and optical blanks rather than direct rival; 26.25% ROE and far larger market value |
Compugraphics (UK) | Merchant | Specialist in mature and photonics masks |
Peer Comparison FY2026
| Metric | Tekscend FY2026 (to March 2026) | Photronics FY2025 (to October 2025) |
|---|---|---|
Revenue (USD Mn) | 857.6 | 849.3 |
Revenue growth (%) | 9.8 | -2.0 |
Gross margin (%) | 33.4 | 35.3 |
Operating margin (%) | 21.2 | 24.5 |
R&D as % of revenue | 1.0 | 1.9 |
Capex (USD Mn) | 220 | 188.1 |
Cash (USD Mn) | 341 | 588.2 |
