Breaking news

How Japan’s Industrial Giants Became AI Supply Chain Winners

by THEFUTURE.TEAM

July 22, 2026

While investors have spent much of the past year chasing semiconductor companies at the center of the AI boom, some of the market’s strongest performers have come from unexpected corners of Japan’s industrial economy.

Toto, Nittobo and Ajinomoto are better known for toilets, glass fiber and seasoning than advanced computing. Yet each has carved out a critical role in the semiconductor supply chain by applying decades of manufacturing expertise to AI infrastructure. Their shares have climbed 78%, 63% and 61%, respectively, this year as demand for semiconductor equipment and advanced chip packaging continues to grow.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

From Legacy Businesses To AI Infrastructure

Rather than reinventing themselves, all three companies have adapted long-established materials science and manufacturing capabilities to serve the AI industry.

Toto supplies ceramic electrostatic chucks used in semiconductor production equipment. Nittobo manufactures advanced glass fiber for semiconductor package substrates, while Ajinomoto produces ABF, an insulating film essential for packaging high-performance chips used in data centers and AI applications.

The AI boom is driving demand throughout the semiconductor supply chain, creating new growth opportunities for businesses once considered niche parts of much larger industrial groups.

Toto: A Ceramics Business Finding New Scale

Toto remains best known for its housing and bathroom products, but its advanced ceramics division has become an increasingly important source of earnings. The business reported a 34% increase in annual revenue and a 42% rise in operating profit for the fiscal year ended March 31, offsetting weaker results in the company’s core housing operations.

The company entered the semiconductor industry in 1988, when it began producing electrostatic chucks that hold silicon wafers in place during chip manufacturing. The components help improve production yields for advanced semiconductors, positioning Toto to benefit from investment in AI, data centers, IoT and digital transformation.

Despite the rapid growth of its ceramics business, Toto says it has no plans to shift away from its traditional operations. Instead, it views its housing business as a stable foundation while expanding its higher-growth semiconductor business.

Nittobo: Electronic Materials Become The Growth Engine

Electronic materials have become central to Nittobo’s growth strategy. Its T-glass product, introduced in 1984 for printed circuit boards and electronic components, has benefited from rising demand for AI hardware.

The company says AI-related semiconductor demand is shaping investment, research and hiring decisions. That strategy has translated into stronger results: net sales in the electronic materials segment rose 20.4% year on year, while operating profit increased 39.7%.

According to CNBC calculations, the segment generated about 91% of Nittobo’s total net sales growth in the latest fiscal year. Operating profit increased by 5.5 billion yen, or roughly $34 million, exceeding the company’s overall operating profit growth. Nittobo expects demand for specialty glass used in servers, networking equipment and semiconductor package substrates to remain strong and plans to expand production capacity.

The company continues to develop new industrial applications for its traditional glass-fiber business, suggesting AI is strengthening rather than replacing its broader manufacturing portfolio.

Ajinomoto: An ABF Advantage

Ajinomoto remains best known as a food company, but one of its most valuable technologies sits far beyond the supermarket aisle.

Its ABF (Ajinomoto Build-up Film) is a semiconductor insulation material originally developed from a byproduct of the company’s MSG manufacturing process. Introduced commercially in 1999, it is now widely used in packaging high-performance processors.

As semiconductor packaging becomes more complex, demand for ABF has continued to grow. Ajinomoto expects AI, 5G and other advanced technologies to support further expansion.

Although the company does not report ABF as a standalone business, its fiscal 2025 results highlight its growing importance. The Healthcare and Others division, which includes ABF, posted revenue growth of about 4% and a 45.1% increase in business profit, driven by stronger electronic materials sales. The segment accounted for more than one-third of total company profit and surpassed the frozen food business in both revenue and profit.

Ajinomoto expects continued expansion of its ABF business as part of its broader AminoScience strategy, where the company aims to balance industrial and food operations over the long term.

The Broader Lesson For Investors

The AI boom is extending well beyond chip designers and cloud providers. As semiconductor supply chains become more specialized, companies with decades of expertise in ceramics, specialty glass and advanced materials are finding new sources of growth.

For investors, some of the strongest AI opportunities may lie in businesses that were never considered technology companies in the first place. Japan’s industrial sector shows that long-established manufacturing expertise can become a competitive advantage in the next generation of computing.

The Future Forbes Realty Global Properties

China’s Humanoid Robot Boom Faces A Bigger Question: Can These Machines Make Money?

by News Editor

August 14, 2026

Unitree’s $9 Billion Bet On The Future Of Robotics

China’s humanoid robotics industry is attracting huge investor interest, but as Unitree Robotics prepares for its public debut, questions are growing over whether its robots can move beyond impressive acrobatics and become commercially viable tools.

The Hangzhou-based startup priced its IPO at 150.8 yuan ($22.4) per share, raising $900 million and valuing the company at 61 billion yuan, or about $9 billion. The offering attracted record retail demand on Shanghai’s STAR Market, with the online tranche oversubscribed more than 5,000 times and a winning rate of just 0.018%. Strategic investors included AI startup DeepSeek.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

A Unitree-linked pre-IPO perpetual contract was trading at roughly four times the IPO price on Friday, highlighting the speculative interest surrounding the company.

Unitree is known for robots capable of kung fu kicks, backflips and recovering from falls. Yet analysts question whether the technology is ready for large-scale commercial use. “For these humanoid robots, to be honest, they’re fascinating. They can dance and all that, but I’ve never seen them doing any real housework,” said Hao Hong, managing partner of Lotus Asset Management.

In its prospectus, Unitree warned that mass adoption could take longer than expected because robotic hands are still not precise or durable enough for sustained use.

From Acrobatic Robots To Commercial Machines

Even advanced humanoid robots can currently perform only a limited number of tasks and typically operate for a few hours before recharging, according to Dominik Pross, an equity analyst at VP Bank. Most models run for up to four hours, while robots also need to be trained for individual tasks.

“Robots have to be specifically trained for each and every task entrusted to them, even the simplest,” Pross said.

More robotics listings are expected, with Unitree rivals AgiBot and Leju Robotics seeking listings in Hong Kong and Shenzhen. LimX Dynamics founder Will Zhang said last month that “listing is a must.”

China’s Cost Advantage

China’s manufacturing scale has helped it establish a leading position in robotics. Wood Mackenzie expects the global humanoid robot fleet to surpass 10 million units by 2035, while China already accounts for more than 70% of global industrial robot installations and nearly 90% of humanoids deployed last year.

Average humanoid robot prices fell 93% between 2020 and 2025 to $58,000. Unitree’s flagship G1 costs $16,000, while SemiAnalysis estimates that the company has cut the price of its G1 EDU model by more than 45% to $27,300, while maintaining a 67% gross margin.

Falling prices and government support are attracting investment, but analysts say it will take time to prove that humanoid robots can generate strong returns. Unitree’s revenue more than quadrupled last year, although adjusted first-quarter profit fell more than 52% as research and development and marketing spending increased. Nearly three-quarters of its humanoid revenue in the first nine months of 2025 came from research and education, highlighting the gap between demonstrations and widespread commercial use.

“Unlike many early-stage robotics companies, the Unitree story is backed by real revenue growth,” said Jeff Ko, chief analyst at CoinEx. Still, he noted that its $9 billion valuation, at more than 200 times last year’s earnings, reflects significant speculative interest.

Geopolitical Risks

Unitree’s IPO momentum has continued despite growing pressure on Chinese robotics companies. The U.S. moved last month to ban imports of foreign-made humanoid and four-legged robots, potentially exposing Unitree, which generated about 13% of its revenue from the U.S. last year.

Access to Nvidia hardware and software is another risk, as Chinese robotics companies rely on the technology to power their systems. “Chinese robot producers are not yet in a position to do without Western components completely,” Pross said.

China’s control over rare earths used in robot actuators and motors could nevertheless give its manufacturers an advantage, according to Bernstein analyst Dien Wang.

The Bigger Robotics Opportunity

The potential market is attracting major players, including Tesla, whose CEO Elon Musk is expanding production plans for Optimus humanoid robots. At the same time, some researchers argue that the future of robotics will not be limited to humanoids: quadruped and purpose-built robots can be cheaper and more reliable for repetitive industrial tasks, while humanoids may be better suited to unpredictable environments.

For Unitree, the challenge is no longer proving that its robots can perform impressive tricks. It is proving that they can do enough useful work to justify a $9 billion valuation.