JAPAN TECHNOLOGY: SEMICONDUCTOR CAPITAL EQUIPMENT: Strong demand continues, but production capacity and pricing power to lead to varied profit margins; D/G Ulvac to Sell

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JAPAN TECHNOLOGY: SEMICONDUCTOR CAPITAL EQUIPMENT: Strong demand continues, but production capacity and pricing power to lead to varied profit margins; D/G Ulvac to Sell

Equity Research

27 July 2026 | 6:07AM JST

JAPAN TECHNOLOGY: SEMICONDUCTOR CAPITAL EQUIPMENT

Strong demand continues, but production capacity and pricing power to

lead to varied profit margins; D/G Ulvac to Sell

With prices for SPE components also rising, equipment makers’ Shuhei Nakamura +81(3)4587-9932 |

pricing strategies to play an important part shuhei.nakamura@gs.comGoldman Sachs Japan Co., Ltd.

Amid robust capex demand from semiconductor makers, tightness is emerging Kaho Otake

upstream in the supply chain. Moves to raise equipment prices are materializing, with +81(3)4587-7498 | kaho.otake@gs.com Goldman Sachs Japan Co., Ltd.

TSMC mentioning rising production equipment prices at its recent results briefing.

Additionally, according to our channel checks, prices for parts and materials used in

production equipment are also beginning to rise. While SPE makers are expected to

see strong demand for the time being, with continued requests from customers to

bring forward shipments (particularly for front-end equipment), we believe trends in

profit margins up ahead will vary significantly depending on each company’s

preparedness for the surge in demand, product competitiveness, and pricing

strategies.

Production capacity and product competitiveness at each company

likely to determine strength/weakness of margins

As noted in our 2H CY26 investment strategy report, we focus on two key points for

our individual stock recommendations: (1) whether a company can achieve sales

growth above the sector average through technological change, proprietary