TeraProbe

Basic Information

Stock Code
6627
Industry
Electrical Equipment
Category Detail
Professional Services for Businesses
Prefecture
Kanagawa Prefecture
Establishment Year
August 2005
Listing Year
December 2010
Official Website
https://www.teraprobe.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hip, UT Group, Kikuchi Seisakusho, Carlit, Hokkan Holdings, Hoden Precision Machining Research Institute, U.M.C. Electronics, SEMITEC, Dainikko, AKIBA, Hirayama Holdings, Quoltech

Overview

TeraProbe is an electrical equipment manufacturer founded in 2005, specializing in semiconductor integrated circuit testing as its main business. As a subsidiary of Taiwan's Powertech Technology, it excels in inspection technologies for DRAM and LSI.

Current Situation

TeraProbe recorded consolidated net sales of approximately 18.3 billion yen and operating profit of approximately 400 million yen for the fiscal year ended December 2020, maintaining a stable business foundation in the semiconductor testing sector. Its core semiconductor wafer testing and final testing businesses target DRAM and LSI, securing technological strength and market share through support from major Taiwanese companies. In recent years, it has expanded its business domains through joint ventures and wholly-owned subsidiaries, while focusing on enhancing logistics and manufacturing equipment. The management integration with the parent Powertech Technology Group has solidified capital relationships, enabling continued aggressive capital investments and technological development. Anticipating market changes from technological innovations and global competition, it pursues sustainable growth by improving quality control and cost competitiveness. It flexibly responds to trends in domestic and international semiconductor manufacturing industries while planning long-term technological development investments.

Trivia

Interesting Facts

  • TeraProbe was founded with involvement from former Elpida Memory executives.
  • Strengthened its management foundation by becoming a subsidiary of Taiwan's Powertech Technology.
  • Aggressively advancing capital investments in line with increasing outsourced wafer testing volume.
  • Strengths in technology development for both inspection equipment and software.
  • Operates multiple bases domestically, including in Kyushu and Ome.
  • Holds various certifications such as ISO9001, ISO14001, and ISO27001 for thorough quality management.
  • Acquired Casio Micronics business to enter semiconductor electronic components manufacturing.
  • In 2017, became part of Powertech Technology through a stock tender offer under the Financial Instruments and Exchange Act.
  • Separated and sold its wafer-level packaging division by establishing a new company.
  • Continues technological innovation through outsourced development to differentiate from competitors.
  • Established a niche in the market with specialized services in semiconductor testing.
  • Highly regarded in the industry for proprietary probe technology and inspection analysis capabilities.
  • Hakata and Kyushu facilities have expanded factory equipment to strengthen production capacity.
  • Changed market listing from Mothers to Tokyo Stock Exchange Standard.
  • Initial investors included Kingston Technology Japan.

Hidden Connections

  • Parent company Powertech Technology is a major semiconductor testing firm in Taiwan, sharing a global customer network.
  • Involved former Elpida Memory executives in its founding, with deep connections in Japan's semiconductor industry.
  • Subsidiary TeraProbe Aizu transitioned from a joint venture with Aizu Fujitsu Semiconductor to a wholly-owned subsidiary.
  • Entered semiconductor components manufacturing by acquiring a subsidiary business from Casio Computer.
  • Maintains close transaction relationships with diverse electronics manufacturers through products and outsourced services.
  • Kyushu facility strengthened quality management system through ISO9001 certification, gaining trust.
  • Jointly operates a venture company called Crystal Growth Technology with its Taiwanese capital partner.
  • Production equipment expansion and technology development advanced based on certification under the Special Measures Law for Industrial Revitalization.

Future Outlook

Growth Drivers

  • Increasing demand for testing due to advanced semiconductor manufacturing.
  • Improved product strength through strengthened technological collaboration with Taiwan's Powertech Technology.
  • Expansion of semiconductor testing services in emerging markets.
  • Improved testing efficiency and accuracy through introduction of AI and IoT technologies.
  • Diversification of semiconductor components manufacturing and new business creation.
  • Ensuring stable supply by strengthening domestic and international manufacturing bases.
  • Compliance with environmental regulations through sustainable manufacturing processes.
  • Following global growth trends in the semiconductor industry.
  • Market share expansion in outsourced testing market.
  • Ongoing investments in quality improvement and customer satisfaction.

Strategic Goals

  • Achieve top domestic market share in wafer testing.
  • Promote business efficiency through integration of subsidiary operations.
  • Full product rollout of AI-equipped inspection systems.
  • Company-wide initiatives to reduce environmental impact.
  • Strengthen global network including overseas bases.
  • Aggressive R&D investment in new technologies and early commercialization.
  • Enhance social credibility through sustainable corporate management.
  • Diversified business segments to account for over 30% of sales.
  • Stable profit growth and maximization of shareholder value.
  • Promote technological innovation through recruitment and development of highly skilled talent.

Business Segments

Semiconductor Wafer Testing Business

Overview
Provides wafer testing equipment and outsourced services in the early stages of semiconductor manufacturing.
Competitiveness
Stable supply capability through high-precision testing technology and collaboration with Taiwanese parent company
Customers
  • Semiconductor manufacturers
  • Foundries
  • Test service providers
  • EMS providers
  • Research institutions
Products
  • Wafer testing equipment
  • Test probe cards
  • Test process design
  • Outsourced testing services

Semiconductor Final Testing Business

Overview
Provides equipment and software for final inspection of completed semiconductor products.
Competitiveness
Customization capabilities for improving inspection quality
Customers
  • Semiconductor manufacturers
  • Package manufacturers
  • Solution providers
  • EMS companies
Products
  • Final testing equipment
  • Quality evaluation systems
  • Inspection software

Semiconductor Electronic Components Manufacturing Business

Overview
Manufactures and sells semiconductor electronic components through related subsidiaries.
Competitiveness
Synergy effects with in-house testing technologies
Customers
  • Electronic device manufacturers
  • Trading companies
  • Research and development institutions
Products
  • Semiconductor chips
  • Probe components
  • Inspection equipment components

Technology Development and Outsourced Services

Overview
Provides outsourced development and consulting for advanced testing technologies.
Competitiveness
Abundant technical know-how and responsiveness to diverse customers
Customers
  • Semiconductor manufacturers
  • Test equipment manufacturers
  • Research institutions
Products
  • Test technology development
  • Custom design
  • Process optimization

Competitive Advantage

Strengths

  • High semiconductor testing technology capabilities
  • Capital and technical alliances with major Taiwanese companies
  • Stability of domestic and international customer base
  • Diverse product lineup
  • Regionally integrated production bases
  • In-house development of proprietary inspection software
  • Flexible response to customer needs
  • Thorough quality management
  • Aggressive investment in R&D
  • Global supply chain collaboration
  • Experienced engineering team
  • Long track record in the industry
  • Business diversification through multiple subsidiaries
  • Development capabilities for high-precision, high-speed inspection equipment
  • Solid financial foundation

Competitive Advantages

  • Stable technology supply enabled by strong collaboration and capital ties with Taiwan's Powertech Technology
  • Market competitiveness maintained through specialized high-level technologies for DRAM and LSI testing
  • Successful business expansion and risk diversification via joint ventures and subsidiary establishments
  • Dual-wheel revenue base from outsourced services and product sales through diversified management
  • Achieves customer proximity and international responsiveness by balancing domestic bases and global networks
  • In-house development of advanced inspection equipment and software contributes to differentiation from competitors
  • Reliability ensured through ISO certification of quality management systems
  • Ongoing technological innovation through alliances with other companies
  • Rapid adaptability to market changes and high trust from customers
  • Past experience implementing revitalization plans under the Industrial Revitalization Special Measures Law

Threats

  • Risk of reduced orders due to semiconductor industry business fluctuations
  • Risk of global supply chain disruptions
  • Intensifying competition in new technology development
  • Impacts from political situation changes between Taiwan and Japan
  • Pressure from competitors' cost competition
  • Delays in responding to rapid changes in semiconductor manufacturing technology
  • Suppression of capital investments due to global economic uncertainty
  • Concerns over profit pressure from exchange rate fluctuations
  • Market share capture by new entrants
  • Cost increases from strengthened environmental regulations
  • Challenges in securing labor and rising personnel costs

Innovations

2023: Development of AI-Equipped Inspection System

Overview
Introduced a new inspection system that improves defect detection accuracy using AI technology.
Impact
Achieved 20% improvement in inspection accuracy and halving of defects

2022: Introduction of High-Speed Technology for Wafer Testing Equipment

Overview
Developed high-speed technology that improves processing speed of testing equipment by 30% compared to conventional.
Impact
25% improvement in production efficiency

2021: Establishment of Environmentally Considerate Manufacturing Processes

Overview
Established new manufacturing processes that balance exhaust gas reduction and energy savings.
Impact
15% reduction in CO2 emissions

2024: Advancement of Research on Next-Generation LSI Inspection Technology

Overview
Accelerated research and development of inspection technologies targeting finer LSI.
Impact
Expected strengthening of future market competitiveness

Sustainability

  • Thorough environmental management through ISO14001 certification
  • Development and promotion of energy-saving equipment
  • Promotion of waste recycling
  • Participation in environmental conservation activities in collaboration with local communities
  • Implementation of employee environmental awareness programs