EBRAINS,INC. Q1 FY2026 earnings call

• Global Semiconductor Market Context

  • Global semiconductor sales hit an all-time high in 2024, driven primarily by demand for AI server chips, and double-digit growth is projected for 2025
  • Geopolitical risk has pushed countries to accelerate semiconductor production reshoring and diversification: the U.S. CHIPS Act supports large-scale domestic investment, the EU has legislated to strengthen regional production, and Japan’s "Semiconductor and Digital Industry Strategy" backs domestic production of advanced logic chips, power semiconductors, and advanced packaging as a national project (symbolized by TSMC’s new Kumamoto factory and Rapidus’ new Hokkaido factory)
  • Japan has a strong ecosystem of leading manufacturing equipment and material suppliers that support global semiconductor manufacturers

• Positioning of Highlighted Firms by Sub-Theme

  • Ebren (6599, Silicon Cycle theme): Designs and manufactures contract base components for industrial computers, with core products serving semiconductor manufacturing equipment, placing it at a key midpoint of the silicon cycle; targets annual profit growth of over 10% with exposure to both semiconductor and defense end markets
  • Torex Semiconductor (6616, Next-Generation Power Semiconductor theme): Its subsidiary is Japan’s only contract foundry for high-efficiency next-generation SiC power semiconductors, positioned to capture growing demand driven by EV, renewable energy, and industrial equipment energy efficiency needs
  • Inspec (6656, Advanced Packaging Inspection theme): Produces substrate inspection and repair equipment for advanced packaging, a process that connects multiple chips for higher performance AI semiconductors; has already secured large orders for AI-focused high-end substrate inspection equipment
  • Tokyo Ohka Kogyo (4186, Semiconductor Materials theme): A top global supplier of photoresist, holding 24.7% global overall photoresist share and 28% global share for EUV lithography photoresist, and is developing materials for cutting-edge EUV-based advanced semiconductor production
  • QD Laser (6613, Laser Technology theme): A startup with proprietary quantum dot laser technology that enables high-precision, miniaturized lasers for semiconductor manufacturing inspection and measurement, with growth potential from mass production expansion and adoption in new applications like IOWN optical networks

Aggregated consolidated segment financial data (absolute figures and revenue contribution percentages) is not provided in this transcript. Only partial single-firm operational/order data is available: Inspec received 0.46 billion yen in large orders for AI-focused high-end substrate inspection equipment, with an order backlog of 1.93 billion yen. Ebren reported year-over-year revenue decline in Q1 FY2026 (ending March 2026) due to delayed customer capital expenditure.

• Global semiconductor market guidance: Double-digit year-over-year growth is projected for 2025, following an all-time high sales record in 2024
• Ebren: A recovery in semiconductor manufacturing equipment capital expenditure is expected starting next fiscal year, which is projected to drive a rebound in Ebren’s performance
• The SiC power semiconductor market that Torex Semiconductor serves is projected to grow to 64.5 billion USD by 2030

• The semiconductor industry is exposed to cyclical demand fluctuations (the silicon cycle), which caused Ebren’s Q1 FY2026 revenue decline from delayed customer capital expenditure
• Geopolitical tensions create ongoing supply chain and production location risk, which is the driver behind current global production reshoring efforts
• This document does not constitute investment recommendation; all investment decisions are the sole responsibility of the investor

No question and answer section is included in this transcript, which is an analyst article outlining investment themes rather than a corporate earnings call with Q&A.