Kokusai Electric Revenue Surges 46% as AI Drives Chip Equipment Orders to Record High
The Japanese semiconductor equipment maker raised full-year guidance by 42% after first-quarter orders reached ¥140 billion, fueled by DRAM and NAND demand from China and global customers.
Record Quarter Driven by Equipment Orders
Kokusai Electric Corporation reported first-quarter revenue of ¥75.4 billion, a 46% increase year-over-year and a record high for a single quarter, according to CFO Yoshitaka Kawakami during the company's earnings call. The Japanese semiconductor equipment manufacturer saw adjusted operating income rise 59% to ¥17.4 billion (earnings call, 2026-08-06).
The stronger-than-expected performance was driven by a surge in equipment orders, which totaled approximately ¥140 billion in the quarter—exceeding initial forecasts by roughly ¥67 billion. "The increase was particularly significant for DRAM for China as well as for NAND sold to non-China and China," Kawakami said, adding that "strong demand is expected to continue into the second quarter" (earnings call, 2026-08-06).
Guidance Raised Sharply on AI-Driven Demand
Kokusai Electric raised its full-year revenue forecast for fiscal 2027 (ending March 2027) by 21% to ¥340 billion, representing 45% year-over-year growth. The company increased its adjusted operating income projection by 42% to ¥86 billion, an 81% increase from the prior fiscal year (earnings call, 2026-08-06).
The upward revisions reflect accelerating semiconductor capital expenditure across all major applications. Equipment sales are now projected to grow 49% for NAND, 61% for DRAM, and 65% for logic and foundry applications year-over-year. "Driven by generative AI demand, we expect semiconductor device makers to accelerate CapEx for generational shifts and capacity expansion, mainly in high-performance devices," Kawakami stated (earnings call, 2026-08-06).
China Exposure Stabilizes Amid Regional Growth
Sales to non-China manufacturers increased 75% year-over-year in the first quarter, driven by equipment and service revenue growth across major applications. Revenue from Chinese customers declined 3% year-over-year but rose 18% sequentially, "marking a recovery trend following the low point in the fourth quarter of the previous fiscal year" (earnings call, 2026-08-06).
China's share of total revenue is expected to reach 33% for the full year, up from earlier projections, though the company anticipates this will "trend around 30% going forward." CEO Kazunori Tsukada noted that "export controls and tariffs have no direct impact currently," though the company will "monitor closely together with potential indirect impacts" (earnings call, 2026-08-06).
Investment in US Operations and Shareholder Returns
Kokusai Electric is investing ¥20 billion to construct a demonstration center in Oregon, targeting an operational start in January 2027. Full-year capital expenditures are expected to reach approximately ¥29 billion, up 70% year-over-year (earnings call, 2026-08-06).
The company also increased its dividend forecast, with the annual dividend now expected to reach ¥65 per share—comprised of an interim dividend of ¥32 and a year-end dividend of ¥33, both raised by ¥9 from prior guidance. MarginX data shows the interim dividend is payable September 29, 2026.
Tsukada indicated the company has raised its WFE market outlook for calendar 2026 by about 10 percentage points from its May projection, now expecting approximately 60% year-over-year growth, driven by accelerating AI-related investments in DRAM and NAND.
This article was generated by MarginX from the earnings call on 2026-08-06. It is not investment advice.