Disco's preliminary unconsolidated revenue and shipments for the September quarter of JPY 119 billion and 124 billion rose 39% and 60% year on year, respectively. Disco will report its full set of earnings on Oct. 22, 2026.
AI chip demand will accelerate as hyperscalers race to eke out an advantage in AI models. This will spark tremendous chip capacity buildouts and drastically raise chipmaking equipment spending.
Bears
China’s self-sufficiency initiative in semiconductors could drive tremendous technological progress in equipment manufacturers. This could undermine Disco’s industry leadership and threaten market share.
Disco is a Japan-based semiconductor production equipment manufacturer. Founded in 1937, the company manufactures diamond, water, and laser saws, as well as grinders and polishers, used mainly in back-end processes of semiconductor manufacturing, which involves treating processed silicon during the front-end process by thinning and dicing the wafers into bare dies for packaging.It is the world’s largest manufacturer of semiconductor-grade saws and grinders, with an estimated 60%-70% market share in the semiconductor dicing and grinding industry as of 2025. The company operates three main factories, all located in Hiroshima and Nagano, Japan.