Top Message

DISCO’s profits in the first half of FY2025 hit a record high.
We will continue striving to strengthen the company with advanced KKM technologies at our core.

Business Environment and Performance

In the first half of FY2025, while a full-scale recovery in semiconductor capex for consumer devices such as PCs and smartphones, as well as for automotive applications, was not seen, investment remained active for high-performance semiconductors due to the expanding demand for generative AI.
Against this backdrop, shipments of precision processing equipment remained at a high level, centered on high value-added products for memory and logic ICs.
Profitability saw a slight decline in the gross profit margin due to the influence of the exchange rate and in reaction to previously elevated levels. However, contributions from high value-added products and improvements through PIM activities kept the ordinary income margin at a high level in the 40% range.
As a result, first-half business performance reached a new record high in profit for the second consecutive year.

Regarding shareholder returns, based on the dividend policy, dividends per share will be 129 yen, which is a record high interim dividend.

The Year Ahead

Shipments of equipment for generative-AI applications are expected to continue in line with end-market demand. In addition, we are closely monitoring capex trends for high-volume manufacturing, such as the expansion of advanced packaging applications and standard memory for PCs and smartphones, which has yet to fully recover.
While the semiconductor market is cyclical, as applications and technologies will continue to evolve, it is essential that we strengthen our R&D and production capacity from a long-term perspective.
Although it is difficult to predict when new technologies will take off in the market, we believe that continuing to enhance our capacity to respond to changes will ultimately allow us to handle future demand when the time comes.
As we expect that our customers’ R&D needs will continue to increase in the future, we are proactively proceeding with construction of the new Gohara Plant as part of Hiroshima Works in addition to the new building at the Haneda R&D Center in order to respond to these needs.
DISCO places importance on having a manufacturing function as part of the company, and we believe that continuing to strengthen our manufacturing sites will lead to an improved ability to respond to market needs and competitiveness as an organization. We perceive the “ability to create” with respect to R&D and “the ability to manufacture” with respect to monozukuri (making things) as being equivalent to competitiveness, and we will continue to deepen DISCO’s strength. By using this as our Fab-Important strategy, we will continue to strengthen our competitiveness by integrating R&D and manufacturing.

We will continue to dedicate our full efforts to “advanced Kiru, Kezuru, Migaku technologies” and improve our value exchangeability with our stakeholders.

We will also continue to strengthen the company based on our corporate philosophy DISCO VALUES and continue to focus our efforts on both organizational and business management through systems such as Will accounting and PIM activities.
We deeply appreciate the continued support of all our stakeholders and would like to kindly request your cooperation in the year ahead.

December 2025
Kazuma Sekiya, Representative Executive Officer and President