A Japanese toilet maker and seasoning giant are unlikely winners of the AI boom
Business Insider
February 20, 2026
AI-Generated Deep Dive Summary
The AI boom is creating unexpected winners in Japan, with companies outside the tech sector benefiting from their roles in the semiconductor supply chain. Toto, a well-known toilet maker famous for its high-tech bidets, has gained investor attention due to its production of electrostatic chucks, critical components used in manufacturing NAND memory chips. The surge in demand for AI-related semiconductors has driven up memory prices and boosted Toto's stock, which rose over 54% in the past year after an activist fund highlighted its potential.
Meanwhile, Ajinomoto, a giant in food seasonings, is leveraging its expertise in insulating materials to supply advanced semiconductor packaging. Beyond its core food business, the company’s "Healthcare and Others" segment, which includes electronic materials, has contributed to strong financial performance, with net profit rising 8.9% and operating profit increasing 5.6% year-on-year. Ajinomoto's stock also saw a significant gain of over 56% in the past year.
Not all non-tech companies are benefiting equally. Daikin, known globally for air conditioners, supplies high-purity chemical materials used in semiconductor manufacturing but has faced challenges due to declining demand and uncertainties related to U.S. tariffs. The company reduced its operating profit forecast by 5%, citing a 44.6% year-over-year drop in semiconductor-related sales. Despite efforts to offset the impact through price increases and cost reductions, Daikin’s stock dropped sharply following its financial results.
The broader implications of these developments highlight how the AI boom is reshaping industries, creating opportunities for even the most unlikely players. For businesses and investors, this underscores the importance of diversification and identifying unexpected growth areas within supply chains. The story also reflects Japan's strength in niche manufacturing sectors and its ability to adapt to emerging trends in technology.
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Originally published on Business Insider on 2/20/2026