Japan's Toppan is negotiating price increases for FC-BGA substrates with customers as its new FC-BGA substrate plant ramps up, lifting the operating margin of its electronics business and doubling consolidated net profit. Nikkei Asia reported that the additional production line at Toppan's FC-BGA substrate factory in Niigata, Japan, began operations in January 2026, doubling the plant's FC-BGA substrate capacity from the first half of fiscal 2022 (April-September 2022).
According to Toppan president Satoshi Oya at an earnings briefing on August 12, the new FC-BGA substrate line is now almost fully utilized. Demand for FC-BGA substrates has surged on the AI boom, providing a tailwind to Toppan's performance.
Oya also said Toppan is talking with customers about passing on rising semiconductor substrate costs through higher prices. The company is holding appropriate negotiations based on long-term contracts. If the talks lead to FC-BGA substrate price increases, they would help expand earnings, Oya said.
He also added that Toppan can win business in network switches driven by AI demand. Network switches and FC-BGA substrates both belong to Toppan's electronics business, whose operating margin was 24.7% in April-June 2026, up from 19.5% in the first quarter.
Besides the new FC-BGA substrate line in Niigata, Toppan is also building a factory in Singapore, which is scheduled to begin operations by the end of 2026, creating a dual-site production setup.
Toppan's consolidated results for the first quarter of fiscal 2026 showed revenue of JPY457.3 billion (US$2.9 billion), up 15% year-over-year, operating profit of JPY20 billion, up 48%, and net profit of JPY21.6 billion, up 1.3x. The main drivers were a substantial contribution from the acquisition of a major US packaging company in its living and industrial materials business, higher gains from investment income and other items, and improved profitability in its electronics business, including IC substrates.
Article translated by Charlene Chen and edited by Jack Wu
