Japanese semiconductor equipment maker Disco expects sales growth in fiscal year 2027 driven by generative AI and outsourced semiconductor assembly and test (OSAT) customers, according to a recent earnings report.
The company, listed on the Tokyo Stock Exchange Prime Market (ticker: 6146), sees increasing demand for its precision cutting, grinding, and polishing tools used in chip manufacturing. Generative AI applications require advanced processors, boosting orders for Disco's equipment. OSAT providers are also ramping up capacity, further lifting shipments.
In the report, Disco highlighted that sales and orders have been trending upward, with operating profit margins remaining healthy. Regional breakdown showed strong contributions from Asia, particularly Taiwan and China, where semiconductor packaging and testing demand is robust.
Analysts also noted that the impact of DeepSeek v4, a new AI model, could influence future demand patterns, but overall outlook remains positive.