Japan Electronic Materials

Basic Information

Stock Code
6855
Industry
Electric Machinery
Category Detail
Manufacturing Machinery & Electrical Equipment
Prefecture
Hyogo Prefecture
Establishment Year
April 1960
Listing Year
August 1998
Official Website
https://www.jem-net.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nasu Iron, Disco, Rorze, Kokusai Electric, TerraProbe, ULVAC, Advantest, Leader Electronics, Japan Micronics, Lasertec, Tokyo Seimitsu, SCREEN Holdings, Tokyo Electron

Overview

Japan Electronic Materials is a leading specialist in probe cards for semiconductor inspection founded in 1960, holding the top share in Japan and the world's second-largest market position as an electrical equipment manufacturer.

Current Situation

Japan Electronic Materials recorded consolidated sales of 15.669 billion yen for the fiscal year ended March 2020, securing the top domestic share and the world's second position in probe cards. Headquartered in Amagasaki City, Hyogo Prefecture, it operates facilities in Kumamoto, Mita, and Yokohama. In technology development, it advances manufacturing of various types of probe cards, focusing on advanced vertical direct-contact products. It thoroughly manages quality and the environment through ISO9001 and ISO14001 certifications and actively addresses sustainability. It has affiliates both domestically and internationally, accelerating global expansion. In the future, it aims to expand revenue and enhance technological capabilities through technological innovations in high-performance electronic inspection equipment and strengthened sales in Asia and North America. In recent years, it has continued to expand manufacturing bases and invest in product development to maintain competitiveness in the industry.

Trivia

Interesting Facts

  • No. 1 domestic share in probe cards, No. 2 worldwide.
  • Initially focused on manufacturing electron tube components for CRTs.
  • Has multiple factories in Japan and overseas bases in Asia.
  • ISO9001 and ISO14001 certified at all business locations.
  • Over 60 years of history since founding in 1960.
  • Develops and sells inspection auxiliary products such as needle dressers.
  • Top-class in the industry for semiconductor wafer inspection technology.
  • Centralizing manufacturing at Kumamoto factory to improve production capacity.
  • Competitors include Tokyo Electron and Advantest.
  • Classified under manufacturing machinery and electrical equipment in Nikkei industry classification.
  • Has local subsidiaries in Taiwan, China, and the US.
  • 610 standalone employees, 951 on a consolidated basis.
  • Head office and head office factory located in Amagasaki City.
  • Previous affiliates include Tokai Hi-Tech and JEM Shizuoka.
  • Newly established Mita factory in Mita City, Hyogo Prefecture to strengthen production system.

Hidden Connections

  • Has deep technical partnerships with domestic and international semiconductor manufacturers.
  • Collaborates with inspection equipment manufacturers through probe card quality improvements.
  • Has long contributed to regional industrial revitalization in Amagasaki City, Hyogo Prefecture.
  • Optimizes production and sales in collaboration with affiliates across Asia.
  • Built a global standard quality management system through ISO certifications.
  • Attracts attention from the industry as a representative Japanese semiconductor component manufacturer.
  • Ensures management stability through collaboration between the founder's family and current executives.
  • Included in Nikkei's related stocks group, positioned as a key company in the electronics sector.

Future Outlook

Growth Drivers

  • Increasing demand for inspection equipment due to semiconductor market expansion.
  • Enhanced competitiveness through development of high-performance probe cards.
  • Improvement in overseas sales ratio centered on Asia.
  • Creation of new markets through increasing demand for environmentally friendly products.
  • Semiconductor demand expansion accompanying 5G and IoT needs.
  • Increasing demand for higher precision inspection equipment through technological innovation.
  • Strengthening domestic and overseas manufacturing bases and improving production efficiency.
  • Acceleration of new product development through R&D investment.
  • Promotion of global supply chain optimization.
  • Strengthening quality management and service systems.
  • Growth in advanced semiconductor materials market and strengthened collaboration.
  • Diversification of customer base and development into new industrial fields.

Strategic Goals

  • Maintain and expand world top market share.
  • Achieve overseas sales ratio of over 60%.
  • Promote sustainable management through environmental impact reduction.
  • Innovate inspection processes using AI and IoT technologies.
  • Strengthen and streamline global manufacturing system.
  • Sustained technological innovation and product lineup expansion.
  • Improve customer-oriented service quality.
  • Ensure medium- to long-term financial soundness and growth funding.
  • Enhance corporate value through strengthened coexistence with local communities.
  • Develop new business areas and diversify revenue base.

Business Segments

Probe Cards for Semiconductor Inspection Equipment

Overview
Manufactures high-precision probe cards specialized for semiconductor wafer inspection.
Competitiveness
Top domestic market share and world's second-ranked technological prowess
Customers
  • Semiconductor manufacturers
  • Semiconductor inspection service companies
  • Major electronics manufacturers
  • Research and development institutions
Products
  • Vertical direct contact probe cards
  • Vertical spring contact probe cards
  • Chip-scale package probe cards
  • Probe tip cleaning equipment

Electron Tube Component Manufacturing

Overview
Provides high-quality components for electron tubes.
Competitiveness
Long years of manufacturing technology and stable supply system
Customers
  • CRT manufacturers
  • Electronics component trading companies
  • Research institutions
  • Industrial equipment manufacturers
Products
  • CRT cathode components
  • CRT heaters

Global Sales Network

Overview
Expands product sales and technical support centered on Asia, North America, and Europe.
Competitiveness
Strong local sales network and customer support
Customers
  • Overseas semiconductor companies
  • Local sales agents
  • Technical support service companies
Products
  • Probe card products for overseas
  • Technical support services

Parts Supply for Manufacturing Equipment

Overview
Stably supplies parts and consumables necessary for manufacturing sites.
Competitiveness
High-quality parts supply and prompt response
Customers
  • Probe card manufacturers
  • Semiconductor equipment manufacturers
Products
  • Manufacturing parts
  • Consumables

R&D Support Services

Overview
Provides custom products and technical services for research and development.
Competitiveness
High-precision custom manufacturing technology
Customers
  • University research institutions
  • Semiconductor technology research institutes
  • National Institute of Advanced Industrial Science and Technology
Products
  • Prototype probe cards
  • Technical consulting

Asia Market Operations

Overview
Specialized sales and support expansion in the Asian region.
Competitiveness
Flexible response in collaboration with local subsidiaries
Customers
  • Taiwanese semiconductor companies
  • Chinese electronics component manufacturers
  • Korean IT companies
Products
  • Probe cards for Asia
  • Maintenance services

Quality Management System Provision

Overview
Supports establishment of quality management systems and provides inspection equipment.
Competitiveness
Track record of ISO9001 and ISO14001 certifications
Customers
  • General manufacturing industry
  • Quality assurance departments
Products
  • Quality inspection equipment
  • Certification support

Logistics Services

Overview
Rapid delivery and management services for products and parts.
Competitiveness
Optimization of in-house logistics network
Customers
  • Manufacturing sites
  • Sales bases
Products
  • Parts delivery services
  • Warehouse management

Technical Education and Training

Overview
Conducts training for engineers on product understanding and operation.
Competitiveness
Provision of specialized technical know-how
Customers
  • Employees of related companies
  • Customer engineers
Products
  • Probe card technology seminars
  • Maintenance training

Environmentally Friendly Product Development

Overview
Products and services pursuing reduction of environmental impact.
Competitiveness
Environmentally considerate technology compliant with ISO14001
Customers
  • Environmentally conscious businesses
  • Green IT promotion companies
Products
  • Low environmental impact probe cards
  • Reusable parts

Manufacturing for Overseas Partners

Overview
Handles ODM/OEM manufacturing for overseas partners.
Competitiveness
Delivery adherence and high-quality production system
Customers
  • Overseas partner manufacturers
  • OEM production companies
Products
  • OEM probe card manufacturing
  • Custom product対応

Special Application Product Development

Overview
Develops and provides custom products for special environments.
Competitiveness
Technological capability to meet high-difficulty requirements
Customers
  • Industrial special equipment manufacturers
  • Space and defense-related companies
Products
  • Environment-resistant specialized probe cards
  • Custom inspection equipment

Competitive Advantage

Strengths

  • Top domestic market share position
  • Probe card technology for semiconductor inspection
  • Global sales network
  • ISO9001 and ISO14001 certifications
  • Integrated system from manufacturing to sales
  • Advanced custom manufacturing capabilities
  • Local subsidiary expansion centered on Asia
  • Accumulated high-precision inspection technology
  • Prompt customer response and technical support
  • Long-standing industry knowledge and reliability
  • Diverse product lineup
  • Stable financial base on a consolidated basis
  • Strong relationships with overseas partner companies
  • Continuous product quality improvement
  • Development of sustainable environmentally friendly products

Competitive Advantages

  • World's second-largest probe card market share
  • Largest domestic customer base and reliability
  • Flexible response to diverse customer needs
  • Multiple bases and affiliates domestically and internationally
  • Differentiated product lineup through advanced technology
  • Abundant product variations and quality
  • Accumulated technological strength from years of experience
  • Strong customer service and delivery management
  • Acquisition of international quality and environmental certifications
  • Active overseas market development and expansion
  • Custom product development capabilities
  • Strict quality control system in manufacturing processes
  • Continuous investment in sustained technological innovation
  • Multilingual technical support system
  • Comprehensive product warranties and after-sales service

Threats

  • Risk of supply-demand fluctuations in the semiconductor market
  • Technological innovation competition from overseas rivals
  • Risk of obsolescence due to rapid technological changes
  • Impact of trade restrictions due to international situations
  • Risk of declining profitability due to exchange rate fluctuations
  • Pressure from rising manufacturing costs
  • Diversification and increasing sophistication of customer needs
  • Uncertainty in raw material supply
  • Legal risks such as patent infringement lawsuits
  • Decline in customer trust due to quality issues
  • Impact on production bases from natural disasters
  • Burden of response to strengthened environmental regulations

Innovations

2024: Development of New High-Density Probe Card

Overview
Developed and began mass production of high-density probe cards compatible with next-generation semiconductor inspection.
Impact
Improved inspection accuracy and enhanced market competitiveness

2023: Introduction of Low-Environmental-Impact Manufacturing Process

Overview
Introduced environmentally considerate manufacturing processes compliant with ISO14001, achieving energy savings.
Impact
Reduction in CO2 emissions and cost efficiency

2022: Improvement of Probe Card Tip Cleaning Device

Overview
Developed a new model of needle dresser, improving maintainability and durability.
Impact
Reduction in maintenance costs and extended product lifespan

2021: Initiation of AI Inspection Technology R&D

Overview
Promoting research and development of AI utilization technology for automating semiconductor inspection processes.
Impact
Expected improvements in inspection efficiency and quality

2020: Update of Production Equipment at Overseas Manufacturing Bases

Overview
Introduced the latest manufacturing equipment at production bases in China and Taiwan to strengthen production capacity.
Impact
Stabilization and expansion of product supply capacity

Sustainability

  • Promotion of environmental management through ISO14001 certification
  • Energy savings in manufacturing processes and waste reduction
  • Participation in environmental conservation activities with local communities
  • Strengthening recyclability of products
  • Promotion of development of low-environmental-impact products
  • Establishment of sustainable procurement policies
  • Implementation of employee environmental education
  • Introduction of green procurement standards
  • Regular review and improvement of environmental goals
  • Guidance on environmental compliance for suppliers
  • Enhanced disclosure of environmental information to customers
  • Ongoing efforts to reduce CO2 emissions