[News] Nittobo Raises FY2027 Net Profit Forecast by JPY 3B; No Further T-Glass Price Hikes Planned

Demand for advanced glass materials used in AI semiconductor packaging remains robust. According to Nikkei, Nittobo on Aug. 5 raised its consolidated net profit forecast for the fiscal year ending March 2027 to JPY 20 billion, up JPY 3 billion from its previous guidance, though still down 52% from the previous year. The company also raised its revenue forecast to JPY 141 billion and its operating profit forecast to JPY 30 billion, both JPY 4 billion above its previous outlook. Nikkei says the stronger guidance is being driven by continued growth in Nittobo’s electronic materials business, which supplies glass materials for semiconductor applications.

Despite robust demand, Nittobo said it has largely completed previously planned T-glass price increases and has no additional hikes planned at this time. However, it may review pricing again if energy costs remain elevated due to ongoing tensions in the Middle East. As for the decision not to implement further price hikes, a Wallstreetcn report published in May notes that Nittobo is prioritizing stable pricing to support capacity expansion and strengthen its market position.

According to the company’s earnings presentation, demand for T-glass used in servers and edge devices is expected to grow significantly, while demand for NE/NER-Glass for data center applications remains strong. The company therefore raised its fiscal-year 2026 revenue target for its electronic materials business, including glass cloth and glass yarn products, from JPY 77.0 billion to JPY 77.8 billion (up 27% year over year), and its operating profit target from JPY 26.0 billion to JPY 28.0 billion (up 44% year over year).

Nittobo reported April–June 2026 revenue of JPY 34.0 billion, up 21% year over year, while net profit surged 84% to JPY 5.7 billion.

Nittobo Says Planned 3× T-Glass Capacity Expansion May Still Fall Short

Driven by AI demand, T-glass supply remains tight, prompting Nittobo to accelerate capacity expansion. According to Nikkei, the company expects production capacity by the fiscal year ending March 2029 to reach three times the level of the fiscal year ended March 2026. However, President Hisanobu Hayashi said demand is so strong that “even this expansion will not be enough,” adding that market interest is growing in the company’s next large-scale investment.

To support its expansion plans, Nittobo has committed JPY 80 billion (US$550 million) to increase semiconductor materials production in Japan and Taiwan, including T-glass, with capacity in Taiwan targeted to double from 2025 levels by March 2028, Nikkei notes.

T-glass is valued for its dimensional stability, rigidity, and ability to support high-speed data transmission, making it a critical material for AI computing. Nikkei, citing an executive at a printed circuit board manufacturer, reports that NVIDIA, Microsoft, Google, and Amazon have already booked most of Nittobo’s premium glass cloth capacity for this year. Meanwhile, AI-enabled smartphones are driving faster-than-expected demand for thin glass cloth. According to Newspim, as shortages intensified, downstream electronics makers sought to secure supply, with Apple reportedly among the companies sending executives to Japan to negotiate allocations with Nittobo.

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(Photo credit: Nittobo)