Japanese firm Towa Corp. soars with 390% surge in stock prices

The surge in demand for artificial intelligence (AI) has propelled Japanese company Towa Corp. to new heights, with its stock prices skyrocketing by 390%. According to TechInsights, the Kyoto-based company dominates two-thirds of the global market for chip molding equipment. These tools are essential for coating chip matrices and wires with resin, which protects them from environmental factors and enables safe stacking, enhancing the capabilities of graphic processors.

Key clients such as SK Hynix, Samsung Electronics, and Micron Technology have purchased Towa’s compression molding tools, further expanding the company’s advantage. “Our customers say they can’t produce high-end chips, especially for generative AI, without our technology,” said Towa’s president Hirokazu Okada, according to the report.

Okada also revealed that Towa is working on a new product aimed at halving the cost of molding and doubling processing speed. The company plans to commence mass production of this new gear by 2028.