Apple Executives Book Extended Hotel Stays to Secure Memory Deals with Samsung, SK Hynix
In a strategic move to address the ongoing global memory crisis, top executives from iPhone maker Apple have reportedly booked extended hotel stays to negotiate long-term supply agreements with memory manufacturers Samsung and SK Hynix. The goal is to secure a stable memory supply that will last between two and three years, crucial for a company that ships millions of iPhones annually.
Global Memory Shortage Drives Urgent Negotiations
Apple is not alone in this scramble. Other major PC and smartphone manufacturers, including Google, Microsoft, and Dell, have also been visiting the headquarters of Samsung and SK Hynix to secure sufficient DRAM supply. The memory crisis has significantly impacted the tech industry, driving up shares and revenue for memory companies to new heights.
Interestingly, the surge is not limited to pure-play memory product companies. Shares of firms in related businesses are also reaching all-time highs, with several Japanese companies standing out as unexpected beneficiaries.
Toto: From Toilet Seats to Chipmaking Materials
One notable example is Japanese toilet maker Toto, whose shares have hit a 52-week high, marking their steepest gain in five years. The reason behind this surge is the booming demand for memory, driven by artificial intelligence, which has excited expectations for growth in Toto's little-known chipmaking materials operations.
According to a Bloomberg report, Toto's stock surged as much as 11%, its sharpest rise since February 2021, after Goldman Sachs analysts highlighted that the company's electrostatic chucks used in NAND chipmaking are likely to benefit from an AI infrastructure buildout. This development is tightening supplies of both high-end and commodity memory.
Data compiled by Bloomberg shows that Toto's new domain business accounted for 42% of its total operating income in the fiscal year ended March 2025. This shift underscores the company's successful diversification into semiconductor-related operations.
Analysts Upbeat on Toto and Other Japanese Firms
Japan's long history in chip production has led many companies, including unlikely names like consumer product manufacturers, to develop semiconductor-related operations. For instance, MSG seasoning inventor Ajinomoto produces chip insulating films, leveraging its expertise in amino acids. Similarly, cosmetics firm Kao, known for facial cleansers, also operates a chip wafer cleaning business.
Analysts Sachiko Okada and Sayako Tominaga have raised their rating for Toto to Buy from Neutral, citing hopes for "significant profit growth" from the company's chuck-making business. They noted that the memory industry's "tight supply/demand environment" will serve as a tailwind for Toto's operations.
While Toto is renowned for its heated toilet seats and washlets, the company has been part of the semiconductor and display supply chain for decades through its advanced ceramic parts and films. According to Toto's website, its electrostatic chucks—mass-produced since 1988—are used to hold silicon wafers in place during chipmaking, helping control temperature and contamination.
AI Boom Fuels Memory Demand and Production Ramp-Up
The current memory crisis is largely fueled by massive investments in artificial intelligence. Technology giants like Meta Platforms and Amazon are pouring hundreds of billions of dollars into data centers for AI services, triggering widespread semiconductor shortages.
This surge in demand is spurring memory makers worldwide, including SK Hynix, Samsung Electronics, and Kioxia Holdings, to ramp up production. Consequently, it is lifting demand for ancillary products such as Toto's electrostatic chucks, highlighting the interconnected nature of the global tech supply chain.
The ongoing negotiations and market dynamics underscore the critical importance of securing memory supplies in today's tech-driven economy, with unexpected players like Toto reaping significant benefits from the AI boom.
