Top Message

DISCO’s profits have hit a record high for the fifth consecutive year due to increased profitability
We will continue to strengthen the company by furthering our “ability to create” and “ability to manufacture”

Business Environment and Performance

In FY2024, a full-scale recovery in the demand for computers and smartphones was not seen, and capital investment for semiconductor mass production was sluggish. In addition, as the demand for EV was lower than initially expected, investment appetite in power semiconductors declined. On the other hand, proactive capital investment from various semiconductor manufacturers continued for high-performance semiconductors related to generative AI. As a result of this, shipments of high-value added products increased significantly, and this in addition to the strong shipment of precision processing tools (consumables) resulted in a record high shipment amount for this period as well.
Our gross profit margin reached the 70% range owing to several factors including an increase in high value-added transactions, the creation of added value and a decrease in production costs through PIM activities, as well as the favorable exchange rate. This led to a significant increase in income and profitability, resulting in a record high profit for the fifth consecutive year.
Regarding shareholder returns, based on the dividend policy, the annual total of performance-based dividends and additional dividends from surplus funds per share will be 413 yen (interim: 124 yen, year-end: 289 yen), which is a record high.

The Year Ahead

As it is unknown when demand will fully recover for end products such as computers and smartphones, and among the current global economic environment characterized by geopolitical risks including tariff policies, the future remains uncertain. However, new technologies including for generative AI have made an appearance, and expectations for new applications are high.
Although it is difficult to predict when new technologies will appear in the market, we believe that proactively working on various R&D themes with a mid-to-long term perspective in mind and continuing to increase 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 will proceed 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.

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.

June 2025
Kazuma Sekiya, Representative Executive Officer and President