From Bathrooms to Big Tech: Why This Japanese Toilet Maker Just Became an AI Powerhouse

It isn’t just the tech industry that’s embracing AI. Recently, a Japanese toilet maker cemented its place as a key player in the industry when it announced plans to boost production of semiconductor components.

Shares in the company, Toto, surged after the announcement. However, while it may seem a bit extreme for a toilet producer to embrace AI, such a shift isn’t abnormal for Toto.

Since its inception in 1917, Toto has been well-known for its ceramics-related products—ranging from public toilets and modular kitchens to bathtubs and washbasins. In 1988, it started producing electrostatic chunks, which have become one of its most popular products, accounting for almost half of its operating income as of last year, according to Bloomberg.

Approximately the size of a steering wheel, the electrostatic chuck is a ceramic plate that uses an electrostatic force to hold semiconductors in place, making them vital components of the production of NAND memory chips. Today, Toto is the world’s second-largest producer of the parts.

Last Friday, Toto reported record-breaking annual earnings—with shares jumping over 18 percent, a five-year high for the company. The advanced ceramics division, which includes the electrostatic chucks, grew to $429 billion in the 2025 fiscal year—and accounted for more than 50 percent of its profits, according to MarketWatch.

A pivot toward AI

Toto said it expects to increase its investment in electrostatic chunks as the demand for data centers and AI services continues to rise. The company projects its sales of the product to grow 27 percent in the next year, even pledging to invest $191.1 million toward more research and development.

Even though Toto’s approach may appear to be unconventional, it isn’t the only Japanese company that has pivoted to producing essential AI components.