Summary of Conference Call Notes Industry Overview - **Industry**: Semiconductor Capital Equipment - **Event**: Semicon Japan 2025, held from December 17-19 - **General Outlook**: Strong demand for equipment, particularly in memory and advanced logic applications, with expectations of promising business conditions for equipment manufacturers heading into 2026 [1] Key Companies and Insights Tokyo Electron (8035.T, Buy) - **New Products**: Introduced new coater/developer (LITHIUS Pro DICE) and batch deposition system (EVAROS) - **Productivity**: LITHIUS Pro DICE offers higher productivity and reduced customer cost of ownership compared to previous models - **Wafer Processing**: EVAROS increases wafer processing capacity by approximately 60%, processing up to 200 wafers at a time [15] Disco (6146.T, Buy) - **New Models**: Launched three new laser saw models, including two ablation-type and one stealth dicing model - **Productivity**: New models show improved productivity and capability to process unique shapes - **Equipment Update**: Introduced a fully automatic grinder for 300 mm wafers, the first update in 23 years [2] Ebara (6361.T, Buy) - **Productivity**: Latest CMP model, F-REX300XA, offers high productivity with competitive advantages in metrology technology - **Growth Areas**: Anticipates growth in plating equipment for advanced packaging applications, particularly CoWoS - **Adoption**: Memory manufacturers are beginning to use Ebara's bevel polishing equipment in pre-wafer bonding processes [3] Ulvac (6728.T, Buy) - **Market Uptake**: Increased demand for sputtering equipment in front-end-of-line processes, transitioning to Gate-All-Around generation - **Panel-Level Packaging**: Developing solutions for panel-level packaging sputtering equipment, leveraging technology from FPD applications - **Order Momentum**: Strong orders from Chinese customers for metal hard mask processes and increasing orders from global memory makers [9] Advantest (6857.T, Neutral) - **Product Focus**: Showcased test solutions for optoelectronic integrated devices and DRAM, including a new automation tool developed with EDA vendors - **Development**: Joint development of a die-level prober with Tokyo Seimitsu, with potential results emerging in 2H3/27 [10] Kokusai Electric (6525.T, Neutral) - **Product Adoption**: Emphasized the adoption of high value-added products but did not announce new products at the event - **Market Conditions**: Current semiconductor orders are tracking in line with guidance, with expectations for gradual earnings growth [4][12] SCREEN Holdings (7735.T, Sell) - **Growth Drivers**: Anticipates growth in cleaning equipment due to increased needs in wafer bonding processes and shifts in memory device systems - **New Technology**: Introduced the DW-3100 direct imaging system, achieving a line/space resolution of less than 1 micrometer [14] Lasertec (6920.T, Neutral) - **Product Evaluation**: New ACTIS A200HiT model is under evaluation by multiple customers, with expectations to book at least one order in FY6/26 [11] Tokyo Seimitsu (7729.T, Sell) - **Product Compatibility**: All main products are compatible with panel-level packaging, with expectations for orders to exceed previous quarters [12] Price Targets and Risks - **Disco**: Target price of ¥61,000, risks include slowdown in AI-related demand and semiconductor capex downcycle [16] - **Ebara**: Target price of ¥5,000, risks include increasing competition from Chinese manufacturers [16] - **Ulvac**: Target price of ¥7,700, risks include cooling of FPD capex and lower profit margins [16] - **Tokyo Electron**: Target price of ¥38,000, risks include further export restrictions and valuation pressures [16] Conclusion The semiconductor capital equipment industry is poised for growth, driven by strong demand in memory and advanced logic applications. Key players like Tokyo Electron, Disco, and Ebara are introducing innovative products that enhance productivity and meet evolving customer needs. However, potential risks such as market slowdowns and competitive pressures remain critical considerations for investors [1][16]