Toto's Secret AI Business: Beyond Bidets to Chip Components

Toto, a company primarily known for its bidet-style "Washlet" toilets, is experiencing remarkable growth from its advanced ceramics division. This division, which produces components essential for NAND memory chips, saw a 34 percent increase in business over the past year, largely driven by the demand for AI chips.

As of 2026-05-01T12:58:54+00:00, this segment now contributes 55 percent to Toto's operating profit, which reached 53.8 billion yen ($343.5 million) in the current fiscal year. The company anticipates this division will continue its rapid expansion, with an estimated 27 percent growth expected next year.

To support this projected growth, Toto intends to invest an additional 30 billion yen (approximately $192 million) in the upcoming fiscal year. These funds will be directed towards enhancing mass production capabilities and accelerating research and development efforts.

Toto holds a significant position in the global market as the world's second-largest producer of electrostatic chucks (E-chucks). These specialized components are vital for the manufacturing of NAND memory, securely holding silicon wafers in place during fabrication using electrostatic force.

The company's ceramic expertise also extends to producing aerosol deposition components and structural parts used in the manufacturing of large LCD panels. This diversification showcases Toto's broader technological capabilities beyond its well-known sanitary products.

Toto is not alone among Japanese companies capitalizing on the AI surge. For instance, cosmetics manufacturer Kao profits from its semiconductor cleaning agent business, while Ajinomoto, the inventor of monosodium glutamate, is investing significantly in the production of insulating film for motherboards.

These developments underscore how the ongoing AI boom, which has propelled major tech stocks, is creating ripple effects across various, less obvious industries. However, this rapid expansion also raises concerns about a potential AI bubble that could eventually burst, impacting the broader economy.