Activist investor Palliser Capital sent a letter to Japanese toilet manufacturer Toto, valued at $7 billion, stating that it is “the most underrated and overlooked beneficiary of AI memory.”

Toto is known for its bidet toilets, but ceramic expertise is crucial for memory manufacturing.
According to the FT, “Toto’s mandrel technology uses ceramic designed to stay stable at very low temperatures, which helps securely hold silicon wafers during chip production. This makes it relevant for cryogenic etching, which is expected to grow as memory chips become more complex and layered.”
Palliser believes Toto has a five-year technological advantage and should expand its operations.
Ceramic advancements already account for 40% of Toto’s operating profits, while representing less than 10% of its revenue.
Toto has increased its development by 60% over the past year.