Tri Chemical Laboratories Overview
Tri Chemical Laboratories makes ultra-high-purity specialty chemicals for semiconductor front-end processing. It sells deposition precursors for CVD and ALD, dry-etching gases and ion-implantation and diffusion materials, at purities of 6N (99.9999%) and above. It runs a high-mix, low-volume model with roughly 2,000 catalogued chemicals. Batches range from grams for R&D samples to tonnes for volume supply, and the company also designs specialised containers, runs contract synthesis and offers film-formation testing. Hafnium- and zirconium-based high-k precursors are its signature franchise. They are used in DRAM capacitor dielectrics, and the company patented the HAC deposition process. Silicon semiconductors made up 95% of FY1/2026 sales of ¥23.88 billion, and 81% of sales went to users outside Japan. China and Taiwan are now the two largest end-markets. The business earns operating margins of 25% or more and carries an equity ratio near 77%. It also receives equity-method income from SK Tri Chem, its Korean precursor joint venture with the SK group. The company is a small but technologically entrenched supplier sitting beneath global chemical majors in advanced memory and logic materials.
What the company does
The group develops, manufactures and sells high-purity chemical compounds used in semiconductor wafer processing. Its annual securities report describes the business as a single segment: "high-purity chemical compounds for semiconductor and other manufacturing, and associated services". The products are consumed in three front-end process families:
Deposition (CVD/ALD): Precursors that are vaporised and reacted to lay down thin films. These include high-k dielectrics for DRAM capacitors and logic gates, metal and barrier-metal films such as titanium-, tantalum- and tungsten-based layers, electrode materials, low-k dielectrics and silicon-containing films.
Dry etching: High-purity gases that selectively remove material. The company's history in etching goes back to boron trichloride, which it began supplying in 1983. It also makes hydrogen bromide through H.B.R., its joint venture with Japan Air Liquide, and new etching materials for high-aspect-ratio 3D NAND and advanced logic.
Ion implantation and diffusion: Dopant source materials used to form transistors and diodes inside the wafer.
Outside silicon semiconductors, the company keeps its legacy franchises in optical-fibre preform materials and dopants, compound- and oxide-semiconductor materials, solar-cell materials, hard-coating precursors (TiN and SiC coatings for tools), catalysts and special reagents.
Business and revenue model
Revenue is almost entirely product sales of chemical materials. Value-added services are sold alongside the products and are not reported separately. They include container design and sale, cylinder and line cleaning, small-lot filling, solution and dilution-gas preparation, contract synthesis, and contract experiments such as ALD, thermal-CVD and plasma-CVD film-formation tests, purity and impurity analysis and thermal-stability testing. There are no subscription or licensing revenue streams in the consolidated accounts. However, the company's HAC process patents underpin the Korean affiliate SK Tri Chem, and returns from that affiliate arrive as equity-method income and dividends: ¥1,277 million of equity-method profit in FY1/2026, against operating profit of ¥5,902 million.
The model depends on qualification. Once a precursor is written into a customer's process recipe at a given technology node, switching suppliers requires requalification. That makes volumes sticky over the life of a node. In return, the company must continually develop and get new materials adopted as nodes migrate.
Value-chain position and customers
| Customer (FY1/2026) | Sales (JPY Mn) | Share of sales (%) | Role |
|---|---|---|---|
| TOPCO Scientific Co., Ltd. (Taiwan) | 5,294 | 22.2 | Taiwanese distributor serving Taiwan's foundry and memory fabs |
| Japan Air Liquide G.K. | 3,456 | 14.5 | Industrial-gas major acting as a channel; also TCLC's partner in H.B.R. |
| Changxin Xinqiao Memory Technologies, Inc. (China) | 2,589 | 10.8 | DRAM manufacturer within the CXMT group |
TCLC sits upstream of the wafer fabs. It buys inorganic and organometallic raw materials (hafnium, zirconium and other metal compounds, halides and solvents), synthesises and purifies them, packages them in specification containers and ships them directly or through distributors. Its customers are memory and logic chipmakers, foundries, research institutes and universities. A large share of revenue passes through intermediaries. In FY1/2026 the three customers that each exceeded 10% of sales were:
TOPCO Scientific Co., Ltd. (Taiwan): Sales (¥M): 5,294; Share of sales (%): 22.2; Role: Taiwanese distributor serving Taiwan's foundry and memory fabs
Japan Air Liquide G.K: Sales (¥M): 3,456; Share of sales (%): 14.5; Role: Industrial-gas major acting as a channel; also TCLC's partner in H.B.R.
Changxin Xinqiao Memory Technologies, Inc. (China): Sales (¥M): 2,589; Share of sales (%): 10.8; Role: DRAM manufacturer within the CXMT group
Concentration is not new. At its 2007 IPO, Japan Air Gases (now Japan Air Liquide) accounted for 21.3% of sales and TOPCO Scientific for 16.1%.
End-markets
In FY1/2026, memory devices took ¥13.3 billion of silicon-semiconductor sales (58.8%), logic devices ¥8.2 billion (36.0%) and other devices ¥1.2 billion (5.2%). DRAM is the main memory exposure through high-k capacitor precursors, and 3D NAND is a growing target for new etching materials. Logic demand is driven mainly by AI-related leading-edge foundry production in Taiwan. Non-semiconductor uses (optical fibre, coatings, solar, compound semiconductors) contributed about ¥1.2 billion, or 5%.
Company self-description and independent characterisation
The company calls itself a research-and-development-driven firm that develops chemicals, application technology and functional performance for leading-edge industries. Its management philosophy is to "contribute to the development of advanced technology through science and technology and to create 'yutori' (room to breathe) for people". Its integrated report uses the tagline "Material of Materials". It describes itself as a specialist producer of chemicals at 6N purity or above, with world-leading share in specific semiconductor materials and the ability to produce about 2,000 chemicals in high-mix, low-volume runs.
Independently, the company is best seen as a niche precursor and etchant formulator with an unusually concentrated product and customer profile. High-k materials alone are roughly 48% of silicon-semiconductor sales. Its competitive moat rests on process IP (the HAC hafnium process), multi-node qualification at Asian memory and foundry leaders, and very high purity achieved in small, flexible batches. The flip side is customer concentration, heavy exposure to China and the memory cycle, and reliance on distributors. Its affiliates give it an indirect position with SK Hynix through SK Tri Chem, and it is now building local production in China through AD-Trichem.
Strategy
Stated strategy
The company rolls its three-year plan forward every year. The medium-term plan announced on 13 March 2026 covers FY1/2027 to FY1/2029. It has four basic strategies:
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Deepening: Advance the development of high-purity chemicals for leading-edge semiconductors in partnership with customers and equipment makers.
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Broadening: Widen the line-up of small-lot, high-value-added products.
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Sustainability: Help decarbonise the semiconductor industry through lower-impact materials, container reuse and cleaning services.
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Management foundations: Strengthen production, quality, safety, people and governance to support the first three.
The plan's premise is that demand for leading-edge semiconductors will stay strong, requiring continued investment in development and production capacity. Equity-method income is expected to fall in the short term: SK Tri Chem faces higher raw-material costs and lower selling prices, and AD-Trichem incurs start-up costs.
Medium-term targets
| Plan announced 13 Mar 2026 (JPY Mn) | FY1/2026 actual | FY1/2027 plan | FY1/2028 plan | FY1/2029 plan |
|---|---|---|---|---|
| Net sales | 23,883 | 27,000 | 29,000 | 31,700 |
| Operating income | 5,902 | 6,000 | 7,050 | 8,650 |
| Ordinary profit | 7,090 | 6,300 | 6,800 | 8,830 |
| Net income | 5,515 | 4,600 | 4,600 | 6,120 |
| Plan ratios (%) | FY1/2026 actual | FY1/2027 plan | FY1/2028 plan | FY1/2029 plan |
| Operating margin | 24.7 | 22.2 | 24.3 | 27.3 |
| ROE | 16.3 | 12.1 | 11.1 | 13.4 |
| Capex and depreciation plan (¥M) | FY1/2027 | FY1/2028 | FY1/2029 | — |
| Capital investment | 4,475 | 3,078 | 4,735 | — |
| Depreciation | 2,479 | 2,865 | 3,243 | — |
Net sales: FY1/2026 actual: 23883; FY1/2027 plan: 27000; FY1/2028 plan: 29000; FY1/2029 plan: 31700
Operating income: FY1/2026 actual: 5902; FY1/2027 plan: 6000; FY1/2028 plan: 7050; FY1/2029 plan: 8650
Ordinary profit: FY1/2026 actual: 7090; FY1/2027 plan: 6300; FY1/2028 plan: 6800; FY1/2029 plan: 8830
Net income: FY1/2026 actual: 5515; FY1/2027 plan: 4600; FY1/2028 plan: 4600; FY1/2029 plan: 6120
Plan ratios (%): FY1/2026 actual: FY1/2026 actual; FY1/2027 plan: FY1/2027 plan; FY1/2028 plan: FY1/2028 plan; FY1/2029 plan: FY1/2029 plan
Operating margin: FY1/2026 actual: 24.7; FY1/2027 plan: 22.2; FY1/2028 plan: 24.3; FY1/2029 plan: 27.3
ROE: FY1/2026 actual: 16.3; FY1/2027 plan: 12.1; FY1/2028 plan: 11.1; FY1/2029 plan: 13.4
Capex and depreciation plan (¥M): FY1/2026 actual: FY1/2027; FY1/2027 plan: FY1/2028; FY1/2028 plan: FY1/2029
Capital investment: FY1/2026 actual: 4475; FY1/2027 plan: 3078; FY1/2028 plan: 4735
Depreciation: FY1/2026 actual: 2479; FY1/2027 plan: 2865; FY1/2028 plan: 3243
Planned investment totals ¥12.3 billion over three years. The plan assumes ¥150 to the US dollar and adds about 20–30 employees a year. It assumes SK Tri Chem equity-method income of about ¥400 million a year, down from ¥1,282 million in FY1/2026. The August 2026 revision for FY1/2027 (sales ¥29.5 billion, operating income ¥7.45 billion) already exceeds the plan's FY1/2028 targets for both lines.
The previous plan, announced on 14 March 2025, targeted FY1/2028 sales of ¥31.5 billion, operating income of ¥8.62 billion and net income of ¥6.76 billion. The 2026 plan pushes a similar operating income target out by one year. It also cuts the net income path because of the lower affiliate contribution.
Strategic initiatives in the last 24 months
| Initiative | Status / detail |
|---|---|
| Minami-Alps Plant | Completed March–April 2025 (about ¥12.0 billion). Ramping volume production of new etching and CVD materials for next-generation devices. Its hazardous-materials building came into operation during FY1/2027. A mass-production system for new etching materials is being built, with ¥2.4 billion of PP&E purchases in 1H FY1/2027 |
| Next-generation 3D NAND etch | Establishing mass production of leading-edge NAND materials. New NAND fab investment has been deferred by about a year, though existing lines run at high utilisation |
| Logic capacity | Raising production capacity for Metal and High-k materials for logic |
| Taiwan expansion | Expanding output at the Tongluo plant to raise shipments from the Taiwanese subsidiary |
| China localisation | Shanghai Tokuri subsidiary (August 2024) and AD-Trichem joint venture (September 2025; plant due in 1H 2027) |
| Financing | Syndicated term loan with a commitment period and a commitment line with a term-out option, arranged in September 2025 for the Minami-Alps build. Long-term borrowings rose ¥2.36 billion in FY1/2026 and ¥1.79 billion in 1H FY1/2027 |
| Sustainability | Carbon neutrality by 2050 target; SBT certification reported in 2026; container reuse; local green-partnership agreements in Yamanashi; sponsor of the Minami-Alps Biosphere Reserve |
| People | DE&I Promotion Committee; health and productivity management programme; 100% uptake of parental leave by male employees |
| Long-term vision | 2040 vision built on "Material of Materials" |
Minami-Alps Plant: Status / detail: Completed March–April 2025 (about ¥12.0 billion). Ramping volume production of new etching and CVD materials for next-generation devices. Its hazardous-materials building came into operation during FY1/2027. A mass-production system for new etching materials is being built, with ¥2.4 billion of PP&E purchases in 1H FY1/2027
Next-generation 3D NAND etch: Status / detail: Establishing mass production of leading-edge NAND materials. New NAND fab investment has been deferred by about a year, though existing lines run at high utilisation
Logic capacity: Status / detail: Raising production capacity for Metal and High-k materials for logic
Taiwan expansion: Status / detail: Expanding output at the Tongluo plant to raise shipments from the Taiwanese subsidiary
China localisation: Status / detail: Shanghai Tokuri subsidiary (August 2024) and AD-Trichem joint venture (September 2025; plant due in 1H 2027)
Financing: Status / detail: Syndicated term loan with a commitment period and a commitment line with a term-out option, arranged in September 2025 for the Minami-Alps build. Long-term borrowings rose ¥2.36 billion in FY1/2026 and ¥1.79 billion in 1H FY1/2027
Sustainability: Status / detail: Carbon neutrality by 2050 target; SBT certification reported in 2026; container reuse; local green-partnership agreements in Yamanashi; sponsor of the Minami-Alps Biosphere Reserve
People: Status / detail: DE&I Promotion Committee; health and productivity management programme; 100% uptake of parental leave by male employees
Long-term vision: Status / detail: 2040 vision built on "Material of Materials"
Capital-allocation policy
Management currently ranks growth investment ahead of shareholder returns. It plans capex above operating cash flow in FY1/2027. Its dividend policy is to pay stable dividends and raise them over time; ¥35 per share is planned for FY1/2027. FX exposure is partly hedged with forward contracts.
Products & Services
The company does not publish product-level pricing; products are sold under negotiated, customer-specific supply terms. Its catalogue of about 2,000 items is organised by application below. Product and chemical names are as given in company materials.
Si semiconductor materials — CVD/ALD precursors
| Product line | Representative chemistries | Function / specification | Target customers |
|---|---|---|---|
| High-k dielectric precursors | TEMAZr (tetrakis(ethylmethylamino)zirconium), HOC-series Hf/Zr precursors, TMA (trimethylaluminium), cyclopentadienyl-Hf compounds | Atomic-layer deposition of ZrO₂, HfO₂ and Al₂O₃ capacitor dielectrics in DRAM and high-k gate stacks in logic. The company's patented HAC process covers hafnium-based high-k deposition | DRAM makers (Korea, China, Taiwan) and logic foundries |
| Low-k precursors | Alkyl-silicon compounds such as DMDMOS (dimethyldimethoxysilane) | Low-dielectric-constant interlayer films for interconnects | Logic and foundry |
| Electrode / metal precursors | TiCl₄, TEA (triethylaluminium), titanium- and aluminium-based sources | Electrode and liner films | Memory and logic |
| Barrier-metal precursors | TDMAT (tetrakis(dimethylamino)titanium), PDMAT (pentakis(dimethylamino)tantalum) | TiN and TaN diffusion barriers for copper and tungsten interconnects | Logic and memory |
| Other CVD materials | Silicon-source and other CVD compounds | Silicon-containing films and specialised CVD layers | Memory and logic |
Si semiconductor materials — dry etching
| Product line | Representative chemistries | Function | Notes |
|---|---|---|---|
| Halide etching gases | BCl₃, SiCl₄, HF | Metal and dielectric etch | BCl₃ in volume since 1983 |
| Hydrogen bromide | HBr | Vertical silicon and polysilicon etch for 3D NAND and logic | Made through H.B.R., the 49% JV with Japan Air Liquide |
| New etching materials for next-generation devices | Cryogenic-etch chemistries for high-aspect-ratio 3D NAND and advanced logic | Deep channel-hole and contact etch | Main product of the Minami-Alps Plant. Mass production of leading-edge NAND materials is an FY1/2027 initiative |
Si semiconductor materials — ion implantation and diffusion
| Product line | Representative chemistries | Function |
|---|---|---|
| Dopant sources | BF₃, GeF₄, indium iodide-type compounds | Boron, germanium and indium sources for implantation and diffusion |
Non-semiconductor materials
| Product line | Description | Target customers | First supplied |
|---|---|---|---|
| Optical-fibre materials | Preform raw materials with OH removed; boron, germanium and other dopants | Optical-fibre manufacturers | 1979 (OH removal); 1982 (BCl₃) |
| Compound / oxide semiconductor materials | High-purity AsCl₃ and other sources for high-speed communications and EV power devices | Compound-semiconductor fabs | 1984 (AsCl₃) |
| Solar-cell materials | High-purity chemicals for solar-cell fabrication | Solar-cell manufacturers | Sales peaked around FY1/2011 |
| Hard-coating materials | SiC and TiN coating precursors | Tool and component makers | — |
| Catalysts and special reagents | Custom compounds | Research institutions, universities, chemical users | — |
Services
| Service | Description |
|---|---|
| Container design and sale | Specification containers for hazardous materials, including overseas-specification cylinders and polyethylene and glass bottles |
| Container collection and reuse | Collection and refilling of returnable containers to cut customers' environmental load |
| Line and container cleaning | Piping and cylinder cleaning services |
| Small-lot filling and blending | Sub-division, solution and dilution-gas preparation |
| Contract synthesis | Custom synthesis from milligram to tonne scale |
| Contract testing | ALD, thermal-CVD and plasma-CVD film-formation tests; purity and impurity analysis; thermal-stability testing |
Financial Narrative
Sources: annual securities reports for the 44th–48th terms, the FY1/2026 earnings release of 13 March 2026, and FY1/2026 results presentations.
Income statement
Diluted EPS equals basic EPS in every year because the company has no dilutive securities. Per-share figures are on a post-split basis after the 4-for-1 split of 1 February 2021.
Revenue grew at a 19.9% CAGR over the four years from FY1/2022 to FY1/2026, and at 19.5% over five years from FY1/2021 (¥9,801 million).
Commentary. The five-year record shows one sharp cycle around a strong structural uptrend. Sales rose steadily to ¥13.8 billion in FY1/2023, fell 18.5% in FY1/2024 as memory makers cut utilisation and destocked, then jumped 68.1% in FY1/2025 and 26.3% in FY1/2026 to a record ¥23.9 billion. The recovery came from DRAM high-k demand, strong orders from Chinese customers and AI-driven leading-edge logic in Taiwan.
Gross margin peaked at 42.4% in FY1/2025 on high utilisation and a favourable mix. It fell to 37.8% in FY1/2026 for four reasons: Minami-Alps depreciation started, total D&A rose 40% to ¥1,917 million, raw-material costs rose, and labour costs went up to staff the new capacity. Operating profit still rose 12.3%. The FY1/2025-to-FY1/2026 bridge shows about +¥3.5 billion from higher sales, offset by about ¥2.9 billion of higher costs.
Net income runs above operating income in most years because of equity-method income from SK Tri Chem. FY1/2023 was boosted further by larger dividends from SK Tri Chem at the parent level. Net margins of 22–35% therefore overstate the profitability of the operating business. Operating margin is the cleaner measure, and it held at 24–28% outside the FY1/2024 trough.
Balance sheet
In FY1/2026, total assets rose ¥10.3 billion. The main drivers were property, plant and equipment (+¥6.29 billion, mostly Minami-Alps), investment securities (+¥2.22 billion, including the AD-Trichem contribution), inventories (+¥1.89 billion) and receivables (+¥1.29 billion). These were funded by operating cash flow, a ¥2.16 billion drawdown of cash and +¥2.36 billion of new long-term loans. The group has made no acquisitions, and goodwill is immaterial. At 31 July 2026, total assets were ¥49.1 billion, net assets ¥38.2 billion (equity ratio 77.9%) and cash ¥10.1 billion. Long-term borrowings rose a further ¥1.79 billion during the half.
Cash flow
Capex rose sharply during the Minami-Alps build. In FY1/2026, purchases of property, plant and equipment totalled ¥6,286 million in cash, and capital expenditure on an accrual basis was ¥8,156 million. Cash dividends paid were ¥1,137 million. In FY1/2022, financing inflows included the February 2021 public offering of 1.25 million new shares. The company has not bought back shares in the period.
Operating cash flow lagged net income in FY1/2025 and FY1/2026 for two reasons. Working capital built up: in FY1/2026 inventories rose ¥2.1 billion and receivables ¥1.3 billion. And equity-method profit is non-cash, recognised in earnings but received in cash only as dividends. Free cash flow turned negative in FY1/2026 for the first time in the period, purely because of Minami-Alps capex. In 1H FY1/2027 it recovered to +¥1.9 billion, with operating cash flow of ¥4,877 million against investing outflows of ¥2,977 million.
Ratios
ROE is as reported in the annual securities reports. ROIC uses third-party data based on the filings. The FY1/2026 cash conversion cycle is not publicly disclosed. Trailing inventory turnover was about 2.3 times in 2026, which reflects the many products held in stock for qualified customers.
Commentary. The balance sheet has been conservative throughout: equity ratios of 75–87% and a net cash position in every year. ROE fell from 24% in FY1/2022 to 16% in FY1/2026. Part of the fall reflects the FY1/2022 equity raise and cash build, and part reflects the larger asset base after Minami-Alps. ROE was at its lowest, 9.2%, in the FY1/2024 trough. The company estimates its cost of equity at about 9–10%, so ROE has exceeded it in every year shown. Asset turnover recovered to 0.57 as sales outgrew assets, but the jump in non-current assets in FY1/2026 will weigh on turnover until the new capacity fills. Leverage remains negligible, and new long-term bank debt is financing the build-out rather than any equity issuance.
Interim results and current-year guidance
First-half sales and profits were records. Ordinary profit included ¥648 million of equity-method income. The revised guidance assumes ¥155 to the US dollar for 2H, up from ¥150. Each ¥1 move in the yen changes annual operating profit by about ¥35 million. If met, FY1/2027 will be the third consecutive year of higher sales and profits.
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View Subscription PlansFinancial Detail
Group Entities
| Entity | Location | Status / ownership | Capital | Function |
|---|---|---|---|---|
Tri Chemical Laboratories Inc. | Uenohara, Yamanashi, Japan | Parent | ¥3,279M | R&D, manufacturing (Uenohara HQ plant, Uenohara Second Plant, Annex, Minami-Alps Plant), sales |
Tri Chemical Electronic Materials Taiwan Inc. (三化電子材料股份有限公司) | Tongluo, Miaoli, Taiwan | Consolidated subsidiary, 100% | NT$700M | Sales, development and manufacturing for Taiwanese customers |
Shanghai Tokuri Chemical Technology Co., Ltd. (上海特李化学科技有限公司) | Shanghai, China | Non-consolidated subsidiary, 100% | — | China base established August 2024 |
SK Tri Chem Co., Ltd. | Sejong, South Korea | Equity-method affiliate, 35% | ₩25,000M | Precursor manufacturing (Zr, Si, Ti, Hf), mainly for SK Hynix |
H.B.R. Co., Ltd. | Minato-ku, Tokyo, Japan | Equity-method affiliate, 49% | ¥30M | Hydrogen bromide manufacturing (JV with Japan Air Liquide) |
AD-Trichem (Anhui) Electronic Materials Co., Ltd. (安徳拓化(安徽)電子材料有限公司) | Hefei, Anhui, China | Equity-method affiliate, 33% (ADChem 67%) | RMB 100M | Advanced semiconductor materials for local Chinese procurement; plant under construction |
“—” = not publicly disclosed.
Revenue by Segment
| Application (JPY Mn) | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|
Si semiconductors | 10,048 | 17,691 | 22,680 |
Other applications (optical fibre, coatings, solar, compound semis, reagents) | 1,198 | 1,214 | 1,203 |
Total net sales | 11,246 | 18,905 | 23,883 |
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View Subscription PlansRevenue by Segment (%) and Segment Margins & Growth (%)
| Application metric (%) | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|
Si semiconductor share of sales | 89.3 | 93.6 | 95.0 |
Si semiconductor sales growth YoY | -21.9 | 76.1 | 28.2 |
Revenue by Segment (FY1/2025–FY1/2026)
| Product group (JPY Mn) | FY1/2025 | FY1/2026 |
|---|---|---|
High-k (CVD/ALD dielectric precursors) | 9,416 | 10,873 |
Metal (metal, electrode and barrier-metal precursors) | 3,361 | 5,112 |
Etching | 2,059 | 3,322 |
Other CVD | 1,342 | 1,727 |
Implantation and other | 1,513 | 1,646 |
Revenue by Segment by Device Type
| Device type (JPY Mn) | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|
Memory | 5,609 | 11,407 | 13,335 |
Logic | 3,454 | 5,229 | 8,176 |
Other devices | 985 | 1,055 | 1,169 |
Revenue by Segment (Half-Yearly)
| Device type, half-year (JPY Mn) | 1H FY1/2026 | 2H FY1/2026 | 1H FY1/2027 | 2H FY1/2027 plan |
|---|---|---|---|---|
Memory | 7,392 | 5,942 | 8,287 | 7,850 |
Logic | 3,839 | 4,337 | 5,353 | 5,750 |
Other devices | 530 | 639 | 556 | 750 |
Profitability (JPY Mn)
| Profitability (JPY Mn) | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|
Net sales | 11,246 | 18,905 | 23,883 |
Operating income | 1,947 | 5,256 | 5,902 |
Operating margin (%) | 17.3 | 27.8 | 24.7 |
Ordinary profit | 3,276 | 6,583 | 7,090 |
Revenue by Segment (1H FY1/2025–1H FY1/2027)
| Half-year (JPY Mn) | 1H FY1/2025 | 2H FY1/2025 | 1H FY1/2026 | 2H FY1/2026 | 1H FY1/2027 |
|---|---|---|---|---|---|
Net sales | 7,974 | 10,931 | 12,375 | 11,508 | 14,705 |
Operating income | 1,939 | 3,317 | 3,177 | 2,724 | 3,838 |
Income statement (JPY Mn)
| Income statement (JPY Mn) | FY1/2022 | FY1/2023 | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|---|---|
Net sales | 11,574 | 13,803 | 11,246 | 18,905 | 23,883 |
Gross profit | 4,834 | 5,579 | 4,086 | 8,011 | 9,019 |
SG&A including R&D | 1,858 | 2,074 | 2,138 | 2,755 | 3,116 |
Operating income | 2,976 | 3,504 | 1,947 | 5,256 | 5,902 |
Depreciation and amortisation | 1,019 | 1,210 | 1,305 | 1,372 | 1,917 |
EBITDA (operating income plus D&A) | 3,995 | 4,714 | 3,252 | 6,628 | 7,819 |
Equity-method investment income | 1,936 | 2,409 | 1,036 | 1,309 | 1,277 |
Ordinary profit | 5,294 | 6,186 | 3,276 | 6,583 | 7,090 |
Pre-tax income | 5,294 | 6,186 | 3,276 | 6,582 | 7,089 |
Income taxes | 1,199 | 1,354 | 806 | 1,621 | 1,574 |
Net income attributable to owners | 4,095 | 4,832 | 2,470 | 4,961 | 5,515 |
Per-share data (JPY)
| Per-share data (JPY) | FY1/2022 | FY1/2023 | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|---|---|
EPS basic | 126.33 | 148.70 | 76.03 | 152.69 | 169.72 |
Dividend per share | 20 | 30 | 30 | 35 | 35 |
Payout ratio (%) | 15.8 | 20.2 | 39.5 | 22.9 | 20.6 |
Book value per share | 656.07 | 796.26 | 848.40 | 972.02 | 1,112.41 |
Margins and growth (%)
| Margins and growth (%) | FY1/2022 | FY1/2023 | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|---|---|
Revenue growth YoY | 18.1 | 19.3 | -18.5 | 68.1 | 26.3 |
Gross margin | 41.8 | 40.4 | 36.3 | 42.4 | 37.8 |
Operating margin | 25.7 | 25.4 | 17.3 | 27.8 | 24.7 |
EBITDA margin | 34.5 | 34.2 | 28.9 | 35.1 | 32.7 |
Net margin | 35.4 | 35.0 | 22.0 | 26.2 | 23.1 |
Balance Sheet and Margin Analysis (%)
| Balance sheet (JPY Mn) | FY1/2022 | FY1/2023 | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|---|---|
Total assets | 28,288 | 32,115 | 31,864 | 36,944 | 47,274 |
Cash and cash equivalents | 8,034 | 11,137 | 10,497 | 9,439 | 7,279 |
Interest-bearing debt | 4,283 | 3,244 | 2,400 | 1,778 | 4,126 |
Net debt (negative = net cash) | -3,751 | -7,893 | -8,097 | -7,661 | -3,153 |
Net assets (equity) | 21,320 | 25,876 | 27,570 | 31,587 | 36,149 |
Equity ratio (%) | 75.4 | 80.6 | 86.5 | 85.5 | 76.5 |
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View Subscription PlansBalance Sheet and Financial Ratios (x)
| Balance-sheet detail (JPY Mn) | FY1/2025 | FY1/2026 |
|---|---|---|
Current assets | 21,456 | 23,253 |
Non-current assets | 15,488 | 24,021 |
Current liabilities | 4,182 | 7,604 |
Non-current liabilities | 1,174 | 3,520 |
Working capital | 17,274 | 15,649 |
Current ratio (x) | 5.13 | 3.06 |
Cash flow (JPY Mn)
| Cash flow (JPY Mn) | FY1/2022 | FY1/2023 | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|---|---|
Operating cash flow | 3,638 | 6,392 | 2,972 | 3,675 | 3,795 |
Investing cash flow | -932 | -1,557 | -1,781 | -3,116 | -7,054 |
Free cash flow (operating plus investing) | 2,706 | 4,835 | 1,191 | 559 | -3,259 |
Financing cash flow | 3,594 | -1,703 | -1,858 | -1,620 | 1,088 |
Year-end cash | 8,034 | 11,137 | 10,497 | 9,439 | 7,279 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY1/2022 | FY1/2023 | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|---|---|
ROE (%) | 24.1 | 20.5 | 9.2 | 16.8 | 16.3 |
ROA on average assets (%) | 17.0 | 16.0 | 7.7 | 14.4 | 13.1 |
ROIC (%) | 16.9 | 19.5 | 10.0 | 22.0 | 17.9 |
Debt / equity (x) | 0.20 | 0.13 | 0.09 | 0.06 | 0.11 |
Net debt / EBITDA (x) | -0.94 | -1.67 | -2.49 | -1.16 | -0.40 |
Interest coverage, operating income / interest (x) | 96 | 125 | 85 | 229 | 174 |
Asset turnover (x) | 0.48 | 0.46 | 0.35 | 0.55 | 0.57 |
Income Statement and Per-Share Data
| 1H results (JPY Mn) | 1H FY1/2026 | 1H FY1/2027 | Change (%) |
|---|---|---|---|
Net sales | 12,375 | 14,705 | 18.8 |
Operating income | 3,177 | 3,838 | 20.8 |
Ordinary profit | 3,800 | 4,526 | 19.1 |
Net income | 2,776 | 3,373 | 21.5 |
FY1/2027 guidance (JPY Mn) | Initial (13 Mar 2026) | Revised (31 Aug 2026) | FY1/2026 actual |
Net sales | 27,000 | 29,500 | 23,883 |
Operating income | 6,000 | 7,450 | 5,902 |
Ordinary profit | 6,300 | 8,720 | 7,090 |
Net income | 4,600 | 6,570 | 5,515 |
EPS (JPY) | 141.55 | 202.17 | 169.72 |
Revenue by Region
| Region (JPY Mn) | FY1/2025 | FY1/2026 | FY1/2027 revised plan |
|---|---|---|---|
China | 7,000 | 8,116 | 11,040 |
Taiwan | 5,998 | 8,060 | 10,000 |
Japan | 3,888 | 4,499 | 4,655 |
South Korea | 1,542 | 2,206 | 2,826 |
Other | 477 | 1,002 | 979 |
Total | 18,905 | 23,883 | 29,500 |
Regional growth (%)
| Regional growth (%) | FY1/2026 actual | FY1/2027 revised plan |
|---|---|---|
China | 15.9 | 36.0 |
Taiwan | 34.4 | 24.1 |
Japan | 15.7 | 3.5 |
South Korea | 43.1 | 28.1 |
Other | 110.1 | -2.3 |
Revenue by Region (Half-Yearly)
| Region, half-year (JPY Mn) | 1H FY1/2025 | 2H FY1/2025 | 1H FY1/2026 | 2H FY1/2026 | 1H FY1/2027 | 2H FY1/2027 plan |
|---|---|---|---|---|---|---|
China | 2,416 | 4,584 | 4,654 | 3,461 | 5,840 | 5,200 |
Taiwan | 2,617 | 3,381 | 3,616 | 4,444 | 4,950 | 5,050 |
Japan | 1,772 | 2,116 | 2,216 | 2,282 | 2,205 | 2,450 |
South Korea | 1,031 | 510 | 1,304 | 902 | 1,276 | 1,550 |
Share Price History
| Date | Price | Note |
|---|---|---|
24 Feb 2009 | 29 | All-time low (split-adjusted) |
18 Mar 2024 | 5,430 | All-time high |
16 Jan 2026 | 3,140 | — |
13 Mar 2026 | 3,130 | FY1/2026 results day |
16 Mar 2026 | 2,461 | 2026 low |
1 Jun 2026 | 4,455 | 2026 high |
31 Aug 2026 | 3,080 | Close before guidance upgrade |
11 Sep 2026 | 2,922 | 52-week change +14.4% |
19 Oct 2026 | 3,205 | Latest reference close |
Valuation Snapshot
| Metric | Value |
|---|---|
Market capitalisation | ¥104.2 billion |
Enterprise value (market cap minus ¥10.1 billion cash plus about ¥6.2 billion debt) | About ¥100.3 billion |
P/E on FY1/2027 guided EPS of ¥202.17 | 15.9x |
P/E on FY1/2026 EPS of ¥169.72 | 18.9x |
P/B (book value per share about ¥1,177 at 31 Jul 2026) | 2.7x |
EV/EBITDA, FY1/2027E (operating income ¥7.45 billion plus planned depreciation ¥2.48 billion) | 10.1x |
EV/Sales, FY1/2027E | 3.4x |
Dividend yield (¥35) | 1.09% |
Peer reference: ADEKA P/E on FY3/2027 guided EPS of ¥294.30 at ¥4,729 (16 Oct 2026) | 16.1x |
Dividends
| Dividends | FY1/2022 | FY1/2023 | FY1/2024 | FY1/2025 | FY1/2026 |
|---|---|---|---|---|---|
Dividend per share (JPY) | 20 | 30 | 30 | 35 | 35 |
Payout ratio (%) | 15.8 | 20.2 | 39.5 | 22.9 | 20.6 |
Analyst Conclusions
Management guidance and consensus
FY1/2027 guidance, raised on 31 August 2026:
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Sales ¥29.5 billion (+23.5%)
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Operating income ¥7.45 billion (+26.2%; margin 25.3%)
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Ordinary profit ¥8.72 billion (+23.0%)
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Net income ¥6.57 billion (+19.1%)
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EPS ¥202.17; dividend ¥35
The guidance assumes ¥155 to the US dollar for 2H and equity-method income of about ¥640 million in 2H. The medium-term plan targets FY1/2029 sales of ¥31.7 billion and operating income of ¥8.65 billion, but the revised FY1/2027 numbers already exceed the plan's FY1/2028 targets. Third-party consensus implies revenue growth of about 16% a year over three years. At the 1H stage, the company's ordinary-profit guidance was 6.6% above the IFIS consensus.
Bull case
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Structural growth beyond memory. Logic Si sales more than doubled from FY1/2024 to FY1/2026, and Metal and Etching grew 52% and 61% in FY1/2026. The company is becoming less dependent on DRAM High-k. Minami-Alps gives it dedicated etch capacity just as 3D NAND layer counts rise and leading-edge logic grows.
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Earnings momentum against a reasonable multiple. FY1/2027 guidance was raised by 24% at the operating line, and 1H was a record. Yet the stock trades at about 16x forward earnings and 10x EV/EBITDA, roughly in line with diversified ADEKA, despite more than twice ADEKA's margin and faster growth.
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Balance-sheet optionality. With an equity ratio near 78% and minimal net debt even after a ¥12 billion plant, the company can fund capacity, enter China through AD-Trichem and still raise its dividend, which is currently at a payout of only about 17%.
Bear case
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Concentration risk is real. Three customers make up 47.5% of sales and High-k about 48% of Si sales. FY1/2026 showed that one Chinese DRAM customer improving its efficiency can cut a full-year forecast mid-year.
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Affiliate earnings are shrinking. SK Tri Chem's contribution is guided down about 70% to around ¥400 million a year. Hafnium second-sourcing at SK Hynix and Merck's patent challenge threaten that franchise, and AD-Trichem will first be loss-making.
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Operating leverage on the way down. Depreciation is planned to rise about 70% to ¥3.2 billion by FY1/2029, and new NAND fab investment is delayed. A memory downturn like FY1/2024's (sales −18.5%, operating income −44%) would hit a larger fixed-cost base.
Key catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable | What to watch |
|---|---|---|
| Late Nov 2026 | Q3 FY1/2027 results | Whether the planned 2H China decline is shallower than guided; margin trend as Minami-Alps depreciation builds |
| Mar 2027 | FY1/2027 results and rolled-forward plan to FY1/2030 | FY1/2028 guidance; whether the plan absorbs the upgraded run-rate; dividend increase above ¥35 |
| 1H 2027 | AD-Trichem plant completion and first shipments | Start-up losses; migration of China DRAM business to the JV |
| 2026–2027 | Minami-Alps etch mass production | Adoption of next-generation 3D NAND etching materials; timing of new NAND fab investment |
| Ongoing | SK Tri Chem quarterly equity income | Whether income tracks the ~¥400 million annual assumption; SK Hynix hafnium sourcing |
| Ongoing | Merck v. TCLC appeal in Korea | Ruling on validity of the hafnium (HAC) patents |
| Ongoing | US–China export controls and Chinese raw-material restrictions | Effects on China sales (34%) and optical-fibre materials |
| Ongoing | Founder shareholding | Further sales after the reduction to 10.66% in May 2026 |
Late Nov 2026: Catalyst / monitorable: Q3 FY1/2027 results; What to watch: Whether the planned 2H China decline is shallower than guided; margin trend as Minami-Alps depreciation builds
Mar 2027: Catalyst / monitorable: FY1/2027 results and rolled-forward plan to FY1/2030; What to watch: FY1/2028 guidance; whether the plan absorbs the upgraded run-rate; dividend increase above ¥35
1H 2027: Catalyst / monitorable: AD-Trichem plant completion and first shipments; What to watch: Start-up losses; migration of China DRAM business to the JV
2026–2027: Catalyst / monitorable: Minami-Alps etch mass production; What to watch: Adoption of next-generation 3D NAND etching materials; timing of new NAND fab investment
Ongoing: Catalyst / monitorable: SK Tri Chem quarterly equity income; What to watch: Whether income tracks the ~¥400 million annual assumption; SK Hynix hafnium sourcing
Ongoing: Catalyst / monitorable: Merck v. TCLC appeal in Korea; What to watch: Ruling on validity of the hafnium (HAC) patents
Ongoing: Catalyst / monitorable: US–China export controls and Chinese raw-material restrictions; What to watch: Effects on China sales (34%) and optical-fibre materials
Ongoing: Catalyst / monitorable: Founder shareholding; What to watch: Further sales after the reduction to 10.66% in May 2026
Analyst verdict
Tri Chemical Laboratories is a rare listed pure play on semiconductor deposition and etch chemistries. It combines genuine process IP with exceptional profitability and an overcapitalised balance sheet. Over the past three years it has recovered from the FY1/2024 memory trough to record sales of ¥23.9 billion. It has kept operating margins near 25% while building its largest-ever plant, mostly from internal cash. The August 2026 guidance upgrade, to ¥29.5 billion of sales and ¥7.45 billion of operating income, confirms that demand from AI-related logic and DRAM is broadening the business beyond its historical High-k franchise. Logic, Metal and Etching are now growing faster than the core.
The investment debate centres on quality of earnings and concentration rather than growth. Three customers account for nearly half of sales. China is the largest and most erratic region, and the Korean affiliate that once added a third or more to operating profit is being guided sharply lower as SK Hynix diversifies and costs rise. These are real, recently demonstrated risks. The FY1/2026 mid-year forecast cut showed how quickly one customer can move the numbers. Rising depreciation will also amplify the next memory downturn.
At about 16x guided earnings and 10x EV/EBITDA, with a 1.1% yield, the valuation does not appear to price in the margin advantage or the new capacity the company now owns. It is also below most broker targets, which sit in the ¥3,800–4,750 range. The main things to monitor are: the Q3 read on China, the March 2027 plan roll-forward (including whether the dividend finally moves above ¥35), progress on Minami-Alps etch qualification, and the Korean patent appeal. The single biggest upside lever would be a disciplined increase in shareholder returns, given more than ¥38 billion of net assets and limited leverage. The biggest downside risk would be a second China-driven High-k reset coinciding with a DRAM correction.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Position | Tenure / career | Notes |
|---|---|---|---|
Jumpei Takenaka (竹中 潤平) | Representative Director & Chairman | Co-founder (1978). President for much of the company's history, including at the 2007 IPO. Returned as Representative Chairman in April 2016 | Largest individual shareholder (12.81% at 31 Jan 2026, 10.66% after May 2026 sales) |
Kiyoshi Tazuke (太附 聖) | Representative Director, President & CEO (Executive Officer) | Joined 1987. Director and head of Sales Division (2007), Senior Managing Director (2012), President (2014), President & CEO with executive officer role (2022). Oversees safety promotion and quality control | Director of SK Tri Chem (from 2016) and the Taiwan subsidiary (from 2017) |
Hironobu Ohsugi (大杉 宏信) | Director & Executive Officer, Technology | Joined 1995. Manufacturing manager (2006), head of production technology (2017), director (2017); current role since 2023 | President of H.B.R. Co. since 2019 |
Yoshihide Suzuki (鈴木 欣秀) | Director & Executive Officer, Administration | Joined 1994. Corporate planning manager (2007), administration manager (2014), general affairs head (2017), director (2018); responsible for accounting, finance and procurement from 2021 | Director of SK Tri Chem and the Taiwan subsidiary since 2022; IR contact |
Toshihisa Hashimoto (橋本 利久) | Outside Director (independent) | Born 1978. Lawyer specialising in corporate law and risk management. Appointed 2023 | Member, Nomination and Compensation Committee |
Jin Iida (飯田 仁) | Outside Director (independent) | Born 1958. Executive experience at several companies, including in the semiconductor field. Appointed 2024 | Chair, Nomination and Compensation Committee |
Kyoko Kato (加藤 京子) | Outside Director (independent) | Born 1963. Former marketing manager at a foreign-owned global company. Appointed 2024 | Member, Nomination and Compensation Committee; adviser to Diversity Promotion Committee |
Motoharu Takamatsu (高松 基晴) | Full-time Audit & Supervisory Board Member | Internal | — |
Koji Sakakura (坂倉 宏次) | Outside Audit & Supervisory Board Member | Outside | — |
Yong-gil Jeong (鄭 永吉) | Outside Audit & Supervisory Board Member | Outside | — |
Directors' Remuneration
| Category (JPY K) | Total | Base salary | Performance-linked bonus | Headcount |
|---|---|---|---|---|
Directors (excluding outside directors) | 171,134 | 146,482 | 24,652 | 4 |
Audit & Supervisory Board Members (excluding outside) | 22,659 | 22,659 | 0 | 1 |
Outside officers | 33,063 | 33,063 | 0 | 5 |
Major Shareholders
| Rank | Shareholder | Shares | Stake (%) |
|---|---|---|---|
| 1 | Jumpei Takenaka | 4,163,840 | 12.81 |
| 2 | The Master Trust Bank of Japan, Ltd. (trust account) | 4,055,700 | 12.48 |
| 3 | Custody Bank of Japan, Ltd. (trust account) | 3,544,100 | 10.90 |
| 4 | The Yamanashi Chuo Bank, Ltd. | 1,400,000 | 4.30 |
| 5 | MSIP Client Securities (standing proxy: Morgan Stanley MUFG Securities) | 1,291,243 | 3.97 |
| 6 | Tri Chemical Laboratories Employee Shareholding Association | 721,200 | 2.21 |
| 7 | Nomura Trust and Banking Co., Ltd. (investment trust account) | 594,800 | 1.83 |
Competitive Landscape
Key Competitors
| Competitor | Home | Overlap with TCLC | Relative positioning |
|---|---|---|---|
ADEKA Corporation | Japan | High-k (Hf/Zr) and other ALD precursors | Diversified chemical group (FY3/2026 sales ¥416.6 billion). Reported as Samsung's hafnium precursor supplier. Invests in EUV metal-oxide-resist materials and opened a Semiconductor Innovation Center in 2026 |
Merck KGaA — Electronics (including former Versum Materials) | Germany | Deposition precursors, specialty gases | Global leader in breadth. Challenged TCLC's hafnium patents in Korea and is reported to be considering China |
Air Liquide (ALOHA precursors) | France | Advanced deposition precursors, etching gases | Also TCLC's partner (H.B.R.) and channel (Japan Air Liquide), so both competitor and ally |
Entegris | United States | Specialty deposition materials and gases | Large integrated materials supplier with filtration and purification |
SK Trichem | South Korea | Hf, Zr, Ti and Si precursors | TCLC's own 35% affiliate; dominant supplier to SK Hynix. Overlaps with the parent in Korea but is complementary at group level |
Soulbrain | South Korea | Etchants, precursors | Former JV partner (Techno Trichem, 2004); strong at Samsung |
DNF | South Korea | High-k precursors, DPT (double-patterning) materials | Smaller Korean competitor at Samsung |
Hansol Chemical | South Korea | Precursors, high-purity hydrogen peroxide | FY2025 sales ₩884.0 billion; broad Korean semiconductor-chemicals supplier |
Mecaro | South Korea | Hafnium precursors | SK Hynix has evaluated it as a second-source Hf supplier |
UP Chemical (Yoke Technology group) | South Korea / China | Deposition precursors | Chinese-owned supplier with Korean production; benefits from China localisation |
Kanto Denka Kogyo; Resonac | Japan | Etching gases | Compete in specialty etch gases |
Chinese domestic precursor makers | China | High-k and other precursors | Policy-backed localisation threatens TCLC's direct China sales. TCLC's response is AD-Trichem |
Peer Comparison
| Company (latest fiscal year) | Revenue | Revenue growth (%) | Operating margin (%) |
|---|---|---|---|
Tri Chemical Laboratories (FY1/2026) | ¥23.9 billion | 26.3 | 24.7 |
ADEKA (FY3/2026) | ¥416.6 billion | 2.3 | 10.0 |
Hansol Chemical (FY12/2025) | ₩884.0 billion | 13.9 | 20.4 |
