[2026 Update] Complete Guide to Japanese Semiconductor Stock Investing (Part 2): Process Rankings, 20 Promising Stocks Database, and How to Choose by Investment Style

[Summary]

This is Part 2 of the 20-stock Japanese semiconductor guide. Part 1 covered the latest market conditions as of June 2026, the overall ranking, scoring criteria, and the semiconductor value chain.

Part 2 focuses on process-by-process top 3 rankings, the five major risks in semiconductor stock investing, 2026-2030 themes, individual profiles for 20 stocks, search-intent-based FAQ, and update history.

Semiconductor stocks have powerful themes, but they also move sharply with equipment investment cycles, memory prices, U.S.-China restrictions, foreign exchange, interest rates, and how much good news is already priced in. Investors should not only look for strong companies, but also understand when they tend to be bought and when they tend to be sold.

Related Articles To Read First

This is Part 2. The overall ranking and scoring framework are covered in Part 1.

1. Process-By-Process Top 3 Rankings

The overall ranking alone does not fully show where each semiconductor stock is strong. This section organizes the first names to check by process.

Front-End Top 3

Back-End Top 3

Materials, Components, And Substrates Top 3

Fab Infrastructure And Peripheral Areas Top 3

2. Five Major Risks In Semiconductor Stock Investing

1. The Silicon Cycle

In semiconductors, strong demand tends to trigger more capital spending, which can lead to oversupply several years later. Even in a strong AI demand environment, this cycle has not disappeared.

Memory, wafers, equipment, and inspection/test stocks can see their earnings outlook change quickly when customers pause investment plans.

2. U.S.-China Tensions And Export Controls

Equipment stocks such as Tokyo Electron, SCREEN, and KOKUSAI ELECTRIC are sensitive to China-related sales and export controls. Tighter restrictions can affect near-term orders, shipments, and regional sales.

3. A Pause In AI Investment

AI data-center investment is strong, but if cloud companies begin reassessing returns on investment, the market's view can change.

Even if investment in GPUs, HBM, servers, networking, power, and cooling continues, stocks can still correct if prices already reflect too much optimism.

4. Foreign Exchange And Interest Rates

Many Japanese semiconductor-related companies have high overseas sales exposure. A stronger yen can pressure yen-denominated profits.

Semiconductor stocks also tend to trade at higher PERs, making them vulnerable to valuation compression when interest rates rise.

5. What Is Already Priced In

Even a good company may struggle to rise if the stock is already expensive. In semiconductor stocks, expectations often build before earnings, and profit-taking can occur even after good numbers.

The numbers can be good. The question is whether they were already priced in. That sense is especially important in semiconductor investing.

3. Themes To Watch From 2026 To 2030

Advanced Packaging

The industry is shifting from relying only on miniaturization to combining chiplets, 2.5D/3D packaging, CoWoS, and HBM.

Stocks likely to benefit include DISCO, TOWA, Advantest, Ibiden, Tokyo Seimitsu, and Ajinomoto.

Memory And AI Storage

Gartner expects memory revenue to grow sharply in 2026. AI servers create demand not only for GPUs, but also HBM, DRAM, NAND, SSDs, and networking.

Stocks likely to benefit include Kioxia, Advantest, DISCO, Tokyo Electron, and SCREEN.

Rebuilding Domestic Manufacturing Capacity

Rapidus, TSMC Kumamoto, JASM, and semiconductor fab investment are medium-term themes for Japanese companies. They will not immediately lift profits for every stock, but spillover into equipment, materials, ultra-pure water, substrates, and regional infrastructure should be watched.

Stocks likely to benefit include Tokyo Electron, Shin-Etsu Chemical, Tokyo Ohka Kogyo, Organo, Ibiden, and Tokyo Seimitsu.

Power Semiconductors And Power Efficiency

AI data centers consume large amounts of electricity. Even if EV demand temporarily slows, themes such as power conversion, industrial equipment, data centers, and energy efficiency remain.

Stocks likely to benefit include Fuji Electric, Rohm, and Renesas. As of 2026, however, market enthusiasm is lower than for AI/HBM.

4. 20-Stock Individual Profile Database

1. DISCO (6146)

Positioning: Back-end processes, cutting, grinding, polishing.

For the fiscal year ended March 2026, DISCO reported sales of 436.889 billion yen and operating profit of 184.989 billion yen. Its operating margin is extremely high, and its business is close to AI/HBM thinning and cutting processes.

Investment stance: constructive. Business quality is high. However, the stock can become expectations-led, so orders, monthly sales, and the temperature of semiconductor equipment investment need to be tracked.

2. Advantest (6857)

Positioning: Semiconductor testers.

For the fiscal year ended March 2026, Advantest reported sales of 1.128610 trillion yen and operating profit of 499.120 billion yen. The increasing complexity of AI/HBM raises test demand.

Investment stance: constructive. Earnings momentum is strong. At the same time, it is viewed by the market as a core AI tester stock, so the required level for earnings is also high.

3. Tokyo Electron (8035)

Positioning: Broad front-end equipment.

For the fiscal year ended March 2026, Tokyo Electron reported sales of 2.443533 trillion yen and operating profit of 624.936 billion yen. It is a large-cap stock that overseas capital can easily buy, but it is also affected by China restrictions and regional sales mix.

Investment stance: constructive. It is close to the main stream of AI capex. However, front-end equipment is heavily influenced by cycles and geopolitics.

4. TOWA (6315)

Positioning: Molding, resin encapsulation, advanced packaging.

As HBM and chiplets increase the importance of back-end processes, TOWA's thematic appeal strengthens.

Investment stance: constructive. Growth potential is large, but the stock is volatile as a smaller-cap name. Official earnings materials should be prioritized for monthly updates.

5. Ibiden (4062)

Positioning: Package substrates.

For the fiscal year ended March 2026, Ibiden reported sales of 416.201 billion yen and operating profit of 62.027 billion yen. Expectations are strong for high-density substrates used in AI servers.

Investment stance: constructive. It is one of the core AI-server peripheral names. However, capex burden, customer concentration, and pricing power need to be checked.

6. Kioxia Holdings (285A)

Positioning: NAND, flash memory, AI storage.

For the fiscal year ended March 2026, Kioxia reported revenue of 2.3376 trillion yen and operating profit of 870.4 billion yen. Profit leverage can be large when memory market conditions improve.

Investment stance: neutral to constructive. Demand tailwinds are strong, but memory price volatility is also large. After a sharp share-price move, the market will look at profit sustainability.

7. Tokyo Ohka Kogyo (4186)

Positioning: Photoresists and semiconductor materials.

For the first quarter of fiscal 2026, Tokyo Ohka Kogyo reported sales of 67.077 billion yen and operating profit of 15.074 billion yen, showing strong profit growth. As a materials stock, it has strengths that are not solely dependent on AI.

Investment stance: constructive. The balance between financial strength and profitability is good. The key is whether demand for advanced materials continues.

8. Ajinomoto (2802)

Positioning: ABF film, electronic materials, food.

ABF film is important as a semiconductor material, but food and healthcare are also large parts of the company.

Investment stance: neutral to constructive. Semiconductor purity is not high, but it is easier to view as a long-term materials stock. Its food-stock valuation also mixes into the picture.

9. Shin-Etsu Chemical (4063)

Positioning: Silicon wafers, semiconductor materials, PVC.

For the fiscal year ended March 2026, Shin-Etsu Chemical reported sales of 2.573969 trillion yen and operating profit of 635.204 billion yen. Profit declined, but financial strength and business diversification remain strong.

Investment stance: neutral to constructive. This is not a rapid-growth stock. It should be viewed as a materials, financial-strength, and large-cap stock.

10. SCREEN Holdings (7735)

Positioning: Cleaning equipment.

For the fiscal year ended March 2026, SCREEN reported sales of 605.748 billion yen and operating profit of 122.522 billion yen. Sales and profit declined, but the importance of cleaning processes remains.

Investment stance: neutral. The company has capability, but earnings recovery needs confirmation. Valuation alone should not drive the judgment.

11. Lasertec (6920)

Positioning: EUV mask inspection.

For the third quarter of the fiscal year ending June 2026, Lasertec reported sales of 169.539 billion yen and operating profit of 78.191 billion yen. Profitability is high, but share-price volatility is also large.

Investment stance: neutral. Technological scarcity is high. However, without checking order backlog and expectations, judging the stock is difficult.

12. Rorze (6323)

Positioning: Wafer transfer systems.

For the fiscal year ended February 2026, Rorze reported sales of 128.794 billion yen and operating profit of 31.154 billion yen. Sales increased, but profit declined.

Investment stance: neutral. The process is important, but profit recovery needs confirmation.

13. KOKUSAI ELECTRIC (6525)

Positioning: Deposition equipment.

For the fiscal year ended March 2026, KOKUSAI ELECTRIC reported sales of 235.079 billion yen and operating profit of 41.836 billion yen. Sales and profit declined, so this is currently a recovery-confirmation phase.

Investment stance: neutral. The deposition theme is important, but the stock can become expectations-led until the numbers recover.

14. Tokyo Seimitsu (7729)

Positioning: Semiconductor manufacturing equipment, measurement, probing.

For the fiscal year ended March 2026, Tokyo Seimitsu reported sales of 166.839 billion yen and operating profit of 33.738 billion yen. Operating profit increased, but net profit declined.

Investment stance: neutral. It is an important back-end and measurement stock, but earnings quality and orders should be watched.

15. MARUWA (5344)

Positioning: Ceramic electronic components.

For the fiscal year ended March 2026, MARUWA reported sales of 77.289 billion yen and operating profit of 27.633 billion yen. Its operating margin is high, and growth in AI server and semiconductor equipment-related components stands out.

Investment stance: neutral to constructive. It is attractive as a high-profitability components stock, but the capex cycle and valuation need checking.

16. Organo (6368)

Positioning: Ultra-pure water, water treatment, semiconductor fab infrastructure.

For the fiscal year ended March 2026, Organo reported sales of 177.654 billion yen and operating profit of 37.648 billion yen. It is a beneficiary outside the core equipment layer of semiconductor fab investment.

Investment stance: neutral to constructive. It is less flashy than equipment stocks, but if fab investment continues, the stock can be revalued.

17. SUMCO (3436)

Positioning: Silicon wafers.

For the first quarter of fiscal 2026, SUMCO reported sales of 101.402 billion yen and an operating loss of 5.273 billion yen. The stock is waiting for a recovery in wafer market conditions.

Investment stance: watchlist. The company is important over the long term, but near-term profit recovery should be confirmed first.

18. Renesas Electronics (6723)

Positioning: Automotive and industrial semiconductors.

Direct AI/HBM exposure is limited. This is a stock to watch for recovery in automotive and industrial demand.

Investment stance: watchlist. The theme remains, but it should be viewed separately from core AI semiconductor names.

19. Fuji Electric (6504)

Positioning: Power semiconductors and power control.

For the fiscal year ended March 2026, Fuji Electric reported sales of 1.227595 trillion yen and operating profit of 136.620 billion yen. It is important for the power-efficiency theme.

Investment stance: watchlist. It should be viewed as a composite stock spanning semiconductors, heavy electrical equipment, and power control.

20. Rohm (6963)

Positioning: SiC and power semiconductors.

For the fiscal year ended March 2026, Rohm reported sales of 481.148 billion yen and operating profit of 10.864 billion yen. It posted a net loss, so restoring investor confidence may take time.

Investment stance: watchlist. The SiC theme remains, but profit recovery and margin improvement should be confirmed first.

5. How To View The Stocks By Investment Style

6. FAQ: Answers Based On Search Intent

Is it too late to buy semiconductor stocks?

It does not have to be too late. However, as of June 2026, expectations for AI/HBM-related stocks are already priced in for some names. For new positions, it is important to separate temporary supply-demand weakness from deterioration in the earnings outlook.

What are the core AI-related stocks in Japan?

In Japanese equities, DISCO, Advantest, Tokyo Electron, TOWA, and Ibiden are likely to be central candidates. If the scope is widened, Tokyo Ohka Kogyo, Ajinomoto, MARUWA, and Organo are also worth watching.

What can cause semiconductor stocks to crash?

Main factors include slower AI investment, U.S.-China restrictions, lower memory prices, rising interest rates, a stronger yen, excessive capex, and overly high expectations. Semiconductor stocks can fall even when earnings are not bad if expectations were too high.

Which semiconductor stocks should be considered for NISA?

This article is not a recommendation to buy any specific stock. For long-term candidates, investors should focus on financial strength, business diversification, margins, dividends, and valuation. Large-cap and materials-oriented names such as Shin-Etsu Chemical, Tokyo Electron, and Ajinomoto are easier to compare, but timing and concentration risk must be checked separately.

Which semiconductor stocks are suitable for a 10-year holding period?

Equipment stocks have growth potential, but they are exposed to equipment investment cycles. For long-term holdings, materials, consumables, fab infrastructure, and financially strong large caps can also be candidates. Shin-Etsu Chemical, Tokyo Ohka Kogyo, Ajinomoto, Organo, and MARUWA are stocks to view not only through AI, but also through business continuity.

Are semiconductor stocks cyclical stocks?

They have a strong cyclical character. When demand is strong, semiconductor companies increase investment, and oversupply or inventory correction can occur several years later. However, AI/HBM, materials, ultra-pure water, and power control also have medium- to long-term themes that cannot be explained by the cycle alone.

Is DISCO too expensive?

Whether it is expensive cannot be judged by PER alone. DISCO tends to receive a premium valuation because profitability and competitiveness are high. On the other hand, if expectations build too far ahead, the stock can correct even after good earnings. Monthly sales, orders, margins, and sustainability of AI/HBM-related demand are key items to watch.

Advantest or Lasertec: which should investors watch?

Advantest is a stock to view through AI/HBM test demand. Lasertec is a stock to view through the scarcity of EUV mask inspection technology. Both are important, but their stock-price behavior differs. If the focus is closer to AI semiconductor shipment and testing, Advantest is the comparison point. If the focus is advanced lithography and inspection scarcity, Lasertec is the comparison point.

What are the core HBM-related stocks in Japan?

In Japanese equities, DISCO, Advantest, TOWA, Ibiden, Ajinomoto, and Tokyo Seimitsu are likely candidates. HBM is not only about memory itself. It also involves thinning, cutting, molding, testing, substrates, and materials, so it is better to view candidates by process.

What are the TSMC Kumamoto-related stocks?

It is better to avoid asserting direct orders without evidence, but around domestic semiconductor fab investment, Tokyo Electron, SCREEN, Tokyo Ohka Kogyo, Shin-Etsu Chemical, Organo, and Tokyo Seimitsu are names to check. Do not judge only from fab construction headlines; look for actual orders, regional sales, and margin impact.

Why is JSR not included?

JSR is important in semiconductor materials, but after being taken private it is no longer a general listed-stock target for Japanese equity investors. It is therefore excluded from this 20-stock list.

7. Update History

June 3, 2026

• Created the article as a two-part structure: Part 1 and Part 2
• Reflected the June 2026 view on AI/HBM, memory, equipment investment, and domestic semiconductor policy
• Added scores, investment stances, and individual profiles for 20 stocks
• Added FAQ based on search intent
• Added individual stock cards and expanded the FAQ to more than 10 questions

Items To Check In The Next Update

• AI/HBM investment plans from NVIDIA, TSMC, SK Hynix, and Micron
• Orders, margins, and regional sales for Japanese semiconductor equipment and materials companies
• Kioxia's NAND prices, SSD demand, and profit sustainability after the sharp stock move
• Domestic supply-chain spillover from Rapidus, TSMC Kumamoto, and JASM
• Valuation adjustment from yen strength, rising interest rates, and U.S.-China restrictions

Sources

• Semiconductor Industry Association, "Global Semiconductor Sales Increase 25% from Q4 2025 to Q1 2026"
• Semiconductor Industry Association, "Global Annual Semiconductor Sales Increase 25.6% to $791.7 Billion in 2025"
• Gartner, "Gartner Forecasts Worldwide Semiconductor Revenue to Exceed $1.3 Trillion in 2026"
• Gartner, "Gartner Says Worldwide Semiconductor Revenue Grew 21% in 2025"
• SEMI, "World Fab Forecast"
• Focus Taiwan, "Taiwan government approves TSMC's 3nm upgrade for second Japan fab"
• This site's earnings notes for DISCO, Advantest, Tokyo Electron, TOWA, Rorze, Shin-Etsu Chemical, SCREEN, Lasertec, Tokyo Ohka Kogyo, Ajinomoto, Ibiden, Kioxia Holdings, MARUWA, Organo, and others
• Checked on: 2026-06-03