TOPPAN (7911) Investor Update summary

Financial and Business Performance

• FY2024 electronics net sales were JPY 283.3 billion with an 18.9% operating margin; semiconductor packaging sales reached JPY 194.8 billion with a 27% margin, and display sales were JPY 88.5 billion at a 2% margin.

• Electronics accounted for 16% of consolidated net sales.

• FY2025 sales are forecast at JPY 259 billion, with a significant profit increase expected in Q4 as new production lines ramp up.

• By FY2030, sales are targeted at JPY 350 billion, with semiconductor-related sales comprising approximately 80% and a non-GAAP operating margin of 30%.

Strategic Focus and Growth Drivers

• High-end FC-BGA market for AI, server CPUs, and network switches is the primary focus, leveraging technical superiority in microfabrication and build-up wiring.

• The company holds the No. 3 market share in high-end switch FC-BGA substrates and is expanding into advanced packaging and new materials.

• Medium to long-term outlook targets a semiconductor business sales CAGR of 26% and operating margin of 30%, aiming for JPY 350 billion in sales by 2030.

• AI-driven demand is expected to drive a 7x increase in the AI semiconductor market by 2030, accounting for 70% of global semiconductor demand.

• Shipment volume for AI servers projected to grow 3.2x from 2024 to 2030, with rising demand for high-performance network switches and AI ASICs.

Technology Roadmap and Innovation

• Roadmap includes transition from conventional FC-BGA to advanced packaging with glass cores, glass interposers, and organic RDL interposers.

• Mass production of advanced packaging (chiplet, glass core, organic RDL interposers) is planned, with new lines in Niigata and Ishikawa and a new Singapore plant operational by end-2026.

• By 2030, data centers will require 800 Tbps transmission speeds, necessitating miniaturization and photonics-electronics convergence.

• R&D focuses on submicron organic RDL interposers using the damascene process, glass-core FC-BGA, and high-speed optical/electrical transmission for next-generation data centers.

• Collaboration with universities, research institutes, and global partners is accelerating technology development and market responsiveness.