Toilet manufacturer Toto has seen its shares soar at their most rapid pace in five years, as it benefits from AI memory market tailwinds. The Japanese sanitaryware maker might be one of the most unlikely beneficiaries of the AI boom. However, its ceramics expertise is useful in semiconductor manufacturing. Specifically, according to the Japan Times, Goldman Sachs analysts are crediting the 11% stock surge yesterday to Toto’s electrostatic chucks used in NAND chipmaking.
Flush of confidence
Best known for its Washlet-branded cleansing toilets and heated toilet seat accessories, Japan’s Toto has smartly invested and diversified into businesses related to the semiconductor and display supply chain. Its ceramics expertise makes it a surprisingly natural fit for the development of these products. Moreover, this isn’t something new to Toto; it has been mass-producing the aforementioned electrostatic chucks since way back in 1988.
Toto’s chucks are used to hold silicon wafers in place during chipmaking, while minimizing contamination. Over the years, analysts have charted this once side-gig for Toto ramping up to contribute over two-fifths of its operating income, based on March 2025 figures compiled by Bloomberg. It looks like investors are positive and eager to see an update to these figures, as everything the AI industry touches turns to gold, for now.
Tailwinds — the reason Toto shares are up, and a function of its signature Washlet product line
The Goldman analysts quoted by the Japan Times say that Toto is likely to see “significant profit growth,” as they raised the rating of the firm from neutral to buy. Ratcheting up their hopes, they see a tight supply-demand environment in the memory industry as a tailwind for Toto. Indeed, Toto is also said to expect the current wave of AI data center construction to boost its electrostatic chuck business.
Interestingly, the source name checked a few other unlikely Japanese companies that are benefitting from the AI boom. An MSG seasoning maker also makes chip-insulating films, for example. Meanwhile, cosmetics brand Kao’s expertise in facial cleansers has an unexpected twin: the company also makes cleaning agents for semiconductor wafers.
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