Disco Corporation (DSCSY) ☆
equipment & EDA · Industry Index 11 (rank #103) ·
ⓘ Data freshness
price: as of 2026-10-30 index: as of 2026-10-30 fundamentals: latest filing 2026-03-31 Reports quarterly (financials via Yahoo Finance; not SEC-registered)
Japanese maker of precision dicing, grinding and polishing equipment, dominant in wafer thinning and singulation for advanced packaging and HBM.
Industry exposure 0.4 (Grinding/dicing for HBM stacking and advanced packaging is a major AI-driven growth driver, though Disco also serves broad wafer-processing demand.)
Signal
signal: as of 2026-10-13Short (~2 weeks)
- ▼Price momentum— Technical downtrend across short+medium horizon(s) — vote -0.10, confidence 0.18 from 11 indicator sub-signal(s).[price] · derived internally
- ▼Structural— Industry Index 11.4 (falling -6.5 over window) — structural headwind.[index] · derived internally
Medium (~3 months)
- ▼Growth trend— Revenue 5% YoY (decelerating), net margin contracting.[filing: revenue FY2026 vs FY2025]
- ▼Price momentum— Technical downtrend across short+medium horizon(s) — vote -0.10, confidence 0.18 from 11 indicator sub-signal(s).[price] · derived internally
- ▼Structural— Industry Index 11.4 (falling -6.5 over window) — structural headwind.[index] · derived internally
Long (~6 months)
- ▼Growth trend— Revenue 5% YoY (decelerating), net margin contracting.[filing: revenue FY2026 vs FY2025]
- ▲moat— Editorial prior (subjective, NOT backtested): wide moat / clear_leader / strong pricing ⇒ wider/leading long-horizon tilt 0.42. Bounded, low-confidence input.[moat: Editorial moat profile — disco-corp — wide moat, clear_leader, strong pricing (as of 2026-04-22)]
- ▼Structural— Industry Index 11.4 (falling -6.5 over window) — structural headwind.[index] · derived internally
Relationship network
- SK Hynix — customer
- TSMC — customer
Key relationships
- SK Hynix — customer · Disco's wafer grinders and dicing saws are used by memory makers such as SK Hynix for HBM die thinning and stacking. source: kedglobal.com
- TSMC — customer · Disco supplies the grinding and dicing equipment used in TSMC's advanced packaging (e.g., CoWoS) and wafer thinning for AI chips. source: newsletter.semianalysis.com
Options positioning
No liquid options — not enough recent activity to read.
Delayed, end-of-day, aggregate per contract — not a live tape or trade-level flow. Buy/sell side is INFERRED from where each contract's last print sat in the bid/ask spread, not observed order flow. The company-wide side is withheld unless quoted contracts cover at least a quarter of the day's premium, so it can be blank while individual contracts below show a side. Call/put premium is measured across the chain we capture — the 6 nearest expiries within 45 days, not the full option chain — while the table below lists at most 20 flagged contracts, so summing those rows will not reproduce the percentage.
Recent flags
No unusual options activity — nothing above threshold recently.
Daily options volume vs baseline
Not enough option-volume history to chart yet.
Structural carried this call — it supplied almost the entire lean; the other voters nearly net out.
Most voters leaned one way; structural dissented. Directional agreement 0.50.
A clear bearish score; conviction 0.24 reflects how strongly the agents agree. Conviction is confidence, not a probability of the move.
Signal history
Moat
moat: latest change 2026-04-22Disco makes the machines that thin wafers (grinders and polishers) and cut them into chips (blade dicing saws and laser saws), plus the diamond blades and wheels those machines use up. FY2025 (the year to March 2026) net sales were a record 436.9 billion yen, up 11.1%, with operating income of 185.0 billion yen. The results attribute the sales growth to 'an increase in shipments for generative AI'. Demand for 'advanced logic and HBM (High Bandwidth Memory)' stayed high, while power-semiconductor demand was sluggish as EV demand slowed. Grinder shipments rose 17% in FY2025 against 1% for dicers, and IC applications were 76% of fourth-quarter grinder shipments. Consumables were 21% of FY2025 shipments. In the April-June 2026 quarter their sales hit a record 'Due to higher customer facility operation rates and favorable exchange rates', a recurring stream tied to machine usage. In that quarter net sales rose 27.1% to 114.3 billion yen at a 71.3% gross profit margin. Disco discloses forecasts only one quarter ahead because of 'drastic and rapid fluctuations in customer willingness to invest'. Its risk factors name a technology that could 'challenge precision diamond tooling' as a threat to the business.
Rating: wide
Third-party estimates put Disco's world share far ahead of any rival, and its own results show that share earning exceptional returns that have lasted for years. Gendai Business (Kodansha, 2025-12-30, https://gendai.media/articles/-/161100) puts Disco's world share at 70-80% in each of grinders, polishers and dicers. TechNews (2025-12-16), in an article built on a Nikkei report about new laser saws, says in its own closing paragraph, without attributing the figure to Nikkei, that Disco holds about 80% of semiconductor cutting equipment, and Morningstar's company profile estimates 60%-70% of the dicing and grinding industry as of 2025. The FY2025 results (2026-04-22) show gross profit margin of 70.1%, after 70.6% in FY2024 and 67.8% in FY2023, plus an operating income margin of 42.3% and ROE of 25.1%. The four-year cumulative ordinary income margin was 41.4%, which the FY2025 financial review (https://www.disco.co.jp/eg/ir/library/doc/fr/fr20260422.pdf) says met Disco's goal of 20% or more 'for 10 consecutive years'. The technology risk Disco names on its risk-factor page (https://www.disco.co.jp/eg/ir/mginfo/risk.html) is a new method that could replace its core tooling: 'If a processing technology emerges to challenge precision diamond tooling in the future', its performance may be adversely affected. It says it is developing laser and plasma processing for materials that are difficult to process with precision diamond tooling. None of the share sources states its methodology.
Type: intangibles ip
Disco's Business page (https://www.disco.co.jp/eg/ir/mginfo/bg_business.html) says its 'greatest strength lies in our four distinct business fields, each interwoven to provide total solutions'. The four are diamond-abrasive consumables, made since 1937, with 'tens of thousands of blades and grinding/polishing wheels in our inventory'; precision processing equipment, most of it 'customized to meet our customers' wide ranging requirements'; application know-how; and after-sales service. The application know-how comes from laboratories, including 70-plus private test booths at the Tokyo head office, where engineers 'perform test cuts with the materials provided by the customer in order to recommend solutions'. The page calls providing 'the best processing results in the form of our processing solutions' 'the core element offered by DISCO'. The June 2026 Top Message (https://www.disco.co.jp/eg/ir/mginfo/message.html) keeps manufacturing in-house as 'a source of technological innovation, market responsiveness, and competitiveness'. The asset is accumulated process know-how spanning tool, machine and processing parameters. The pages cite no patent count.
Leadership: clear leader
Third-party estimates agree that Disco leads by a wide margin. Gendai Business (Kodansha, 2025-12-30) puts its world share at 70-80% in each of grinders, polishers and dicers. TechNews (2025-12-16, https://technews.tw/2025/12/16/disco-three-equipment/), in an article built on a Nikkei report, calls it in its own closing paragraph the global leader in semiconductor cutting equipment with about 80%; it does not attribute that figure to Nikkei. Morningstar's profile (https://www.morningstar.com.au/investments/security/fra/D65/summary) calls it 'the world's largest manufacturer of semiconductor-grade saws and grinders' with an estimated 60%-70% share as of 2025. Disco's own IR pages (https://www.disco.co.jp/eg/ir/mginfo/msg_share.html) give no share figure and say growth in scale, 'including sales figures and global shares', 'is not our goal'. None of the articles names its data source.
Pricing power: strong
Gross profit margin was 67.8% in FY2023, 70.6% in FY2024, 70.1% in FY2025 and 71.3% in the April-June 2026 quarter, with a FY2025 operating income margin of 42.3%. Disco attributes the FY2025 dip to 'changes in the product and application mix' and says the margin 'Remained at a high level'. It attributes part of the 1Q FY2026 rise to 'favorable exchange rates' as well as 'high-value-added products'. A company-wide gross margin near 70% across three fiscal years is the pricing evidence; Disco publishes no list-price data.
Curated moat judgment grounded in the cited source. source: disco.co.jp
Value-chain position
Layer: equipment & EDA
Upstream back-end equipment and consumables supplier to chipmakers and packaging houses. In the April-June 2026 quarter, IC applications were 70% of dicer shipments and 79% of grinder shipments, and Asia took 82% of sales: Taiwan 34%, China 27% (including local factories of foreign manufacturers) and Korea 11%.
Derived from this company's mapped supply-chain edges and its industry layer.
Signal contribution editorial prior
The moat prior voted +0.42 on the long (~6-month) horizon at weight 0.20 — the swarm call there is bearish (score -0.41, conviction 42).
Editorial prior — subjective, not backtested. It is bounded (±0.6), low-confidence, and never votes on short/medium. See exactly how it voted →
Product lineup
Products & services with an editorial market-share band and technical barrier band — qualitative judgments tied to a cited basis, never invented figures.
| Product | Market share | Technical barrier |
|---|---|---|
| Dicing saws and laser saws (dicers) · Wafer dicing equipment Blade dicing saws and laser saws that cut processed wafers into individual chips. The laser line includes the DFL7363 for AI chips and HBM, which TechNews reports reaching market from the second half of fiscal 2026. | Leader TechNews (2025-12-16), in an article built on a Nikkei report, describes Disco in its own closing paragraph as the global leader in semiconductor cutting equipment with a market share of about 80% (市占率約 80%); it does not attribute that figure to Nikkei. Gendai Business (2025-12-30) separately puts its dicer world share at 70-80%. Dicers were 31% of Disco's FY2025 shipments: 16% blade dicers and 15% laser saws. | Deep TechNews reports three new laser dicing systems. The DFL7363 for AI chips and HBM offers about 50% higher production efficiency than existing models. A laser saw for logic semiconductor materials (DFL7162) is planned for April 2027, and the DFL7563 cuts wafers into multiple shapes. Disco's Business page says most of its equipment is customized to each customer's requirements. It adds that 'Precision equipment, consumable products and processing parameters can be combined in a myriad of ways', and that its application engineers run test cuts on customer-provided materials to recommend the combination. |
| Grinders and polishers (wafer thinning) · Wafer grinding and polishing equipment Grinders that thin wafers and polishers that finish them, used across IC, optical and other semiconductor applications (mainly power semiconductors) and in wafer manufacturing. Grinders were 28% of FY2025 shipments. | Leader Gendai Business (Kodansha, 2025-12-30) puts Disco's world share at 70-80% for grinders and 70-80% for polishers. Morningstar's profile estimates 60%-70% across the dicing and grinding industry as of 2025. | Deep Disco's FY2025 results show grinder shipments up 17% while dicers rose 1%. IC applications were 76% of fourth-quarter grinder shipments, and the company reports demand for 'advanced logic and HBM' at a high level. In the April-June 2026 quarter IC applications were 79% of grinder shipments. The Business page describes equipment, consumables, application know-how and service as 'interwoven to provide total solutions'. Its application engineers 'perform test cuts with the materials provided by the customer in order to recommend solutions'. |
| Precision processing tools (dicing blades, grinding wheels, dry polishing wheels) · Consumables Synthetic-diamond abrasive dicing blades and grinding/polishing wheels that wear in use and are replaced. They were 21% of FY2025 shipments. | Unknown No source fetched gives a market share for blades or wheels, and Disco's IR pages give none. The 1Q FY2026 presentation reports consumable sales at a record high, and they were 20% of that quarter's shipments. | Moderate Consumable sales follow machine usage. The presentation attributes the record to 'higher customer facility operation rates and favorable exchange rates'. Gendai Business notes that because tools are consumables, the more equipment sells, the more tools sell. The Business page says Disco has made abrasive wheels since 1937 and holds 'tens of thousands of blades and grinding/polishing wheels in our inventory'. The sources do not say customers are barred from using other makers' tools, so the barrier is held at moderate. |
What you're looking at
These charts plot Disco Corporation's reported income statement, cash flow, and balance sheet from its SEC filings through 2026-03-31. Every figure is as-filed XBRL — none of it is an estimate.
Over the reported window, revenue grew 29% to $2.8B (FY2023→FY2026); gross margin moved 65% → 70%; net income at $854.6M in FY2026.
Analyst consensus — third-party estimates from Yahoo Finance, as of 2026-10-26. Not SEC filings and not a TradingPilot forecast. source: finance.yahoo.com
| Period | EPS (est.) | Revenue (est.) | YoY |
|---|---|---|---|
| Q/E Dec 2026 | — | JPY 145.7B (JPY 135.2B–JPY 155.5B) · 13 | +33% |
| FY 2027 | — | JPY 566.2B (JPY 541.0B–JPY 602.7B) · 16 | +60% |
Each figure shows the consensus mean, its (low–high) range where available, and · the number of analysts behind that estimate.
Our model leans Bearish on the stock over the medium horizon — a market-direction call, not an earnings forecast. See the Signal tab.
Cash flow & liquidity
Balance sheet
Some recent figures are from Yahoo Finance where the latest SEC filing hasn’t posted yet — FX-converted to USD and reconciled against SEC-filed periods.
Filings
- 2026Q1 · filed 2026-03-31 source: finance.yahoo.com
- FY2026 · filed 2026-03-31 source: finance.yahoo.com
- 2025Q1 · filed 2025-03-31 source: finance.yahoo.com
- FY2025 · filed 2025-03-31 source: finance.yahoo.com
- FY2024 · filed 2024-03-31 source: finance.yahoo.com
Show 1 older filings
- FY2023 · filed 2023-03-31 source: finance.yahoo.com
Key ratios vs peers
Comparing against peers…
Institutional holders (13F)
No tracked 13F holders yet.
This may mean the company's CUSIP isn't curated for 13F matching yet, not that no institution holds it.
What a 13F can’t show you
- Delayed 45+ days. Positions are as-of the quarter-end shown, filed up to 45 days later.
- Long-only, US-listed. No shorts, cash, bonds, FX, foreign, or private holdings; listed options are reported at notional and excluded from per-position equity value.
- $100M threshold. Smaller managers never file.
- “% of 13F” is not “% of AUM”. A 13F is a partial book.
- “Sold out” means “no longer reported” — not necessarily sold.
- One CIK can aggregate multiple sub-entities. Confidential treatment can omit positions.
- Passive index filers are not gurus. Their 13F changes are index flows, and they are excluded from TradingPilot’s smart-money signal.
- Quant caveat. A quant filer’s 13F (e.g. Renaissance) is a long-only quarter-end snapshot and does NOT reflect its actual high-turnover, short-horizon strategy.
- Guru pages and holdings never feed a signal (weightless).
No tagged news yet.
Headlines
2026-10-09 Yahoo Finance: DSCSY · What Makes DISCO CORP (DSCSY) a New Strong Buy Stock
2026-10-08 Yahoo Finance: DSCSY · Has DISCO CORP (DSCSY) Outpaced Other Industrial Products Stocks This Year?
Impact = company-prominence tier (High/Medium auto-assigned by graph centrality/size; Low only on curated minor events), not a magnitude forecast.
No catalysts tracked for Disco Corporation yet.