Advantest (6857) Investor Update summary

Strategic Context and Industry Trends

• The semiconductor industry is experiencing increased complexity due to technological breakthroughs, sustainability demands, and geopolitical shifts, with AI, HPC, automotive, and industrial applications driving demand.

• Global semiconductor revenue is projected to reach $1 trillion, fueled by secular growth in AI, EV, and edge computing.

• The company has expanded its global presence, serving over 1,000 customer sites with more than 7,000 employees in 18 regions.

• Market share increased from 36% in 2017 to 58% in 2023, with sales revenue multiplying 2.4 times and market cap rising 10x.

• Recognized as the #1 large supplier of chip-making equipment for five consecutive years.

Vision and Long-term Management Goals

• The refreshed "Grand Design" extends the 10-year management policy to adapt to rapid industry changes and sustainability demands.

• New vision is to become the most trusted and valued test solution company in the semiconductor value chain.

• Mission to enable leading-edge technologies and contribute to a safe, secure, and sustainable society through semiconductor testing.

• Focus on expanding both economic and social value for stakeholders, supporting a safer and more sustainable society.

• Celebrating 70 years of history, with a vision to remain a key contributor to technology and sustainability for decades to come.

Third Mid-term Management Plan (MTP3, FY2024–FY2026)

• Four key strategies: outpace core market growth, expand into adjacent/new businesses, drive operational excellence, and enhance sustainability.

• Focus on strengthening core test solutions and leveraging a broad product portfolio for digital, RF, memory, and system-level testing.

• Expansion into adjacent areas such as system-level test interfaces, sockets, data infrastructure, analytics, EDA tools, and services.

• Aggressive investment in automation, digital transformation, and AI to improve efficiency and productivity.

• Emphasizes building a resilient supply chain, strengthening human capital, and fostering a unified corporate culture.