Compare moats
Up to three covered companies, band by band. Every call is a curated editorial judgment, never a disclosed figure — and every band carries its cited basis.
| Tokyo Electron | Digital Realty Trust | |
|---|---|---|
| Moat rating | narrow Integrated Report 2026 (issued 2026-09-15) documents strong positions across the line: by Tokyo Electron's own estimate it ranks No. 1 in diffusion furnaces, batch deposition, metal deposition, coater/developers, gas chemical etch and wafer probers, No. 2 in plasma etch and bonders and No. 3 in cleaning, and holds a "100% share" of coater/developers for EUV lithography; its installed base, industry-leading by its own estimate, is approximately 100,000 units, growing by approximately 4,000-6,000 units a year; and its 26,592 patents rank No. 1 in the semiconductor production equipment industry on the LexisNexis PatentSight+ database. Reported returns stayed high through a sales decline: gross profit margin stayed between 44.6% and 47.1% and ROE between 21.8% and 37.2% across fiscal 2022-2026, including fiscal 2024 when net sales fell to ¥1,830.5 billion. The share ranks, the EUV share and the installed-base lead are company estimates, not third-party data. | narrow The FY2025 10-K's own competitive record cuts both ways. Item 1 says a "high-quality, highly interconnected global portfolio such as ours could not be easily replicated today on a cost-competitive basis," yet Item 1A concedes that competitors have "significantly greater financial, marketing and other resources and more ready access to capital" and that as rivals keep developing space, "rental rates may be reduced or we may face delays in leasing." A durable advantage that its own filing says new supply can price against is bounded, not unassailable. |
| Moat type | intangibles ip The report calls its patent portfolio its "fifth strength" and says that "by supporting our other four strengths, it serves a vital role as the foundation" for medium- to long-term corporate value: 26,592 patents as of March 31, 2026, 1,415 inventions created in Japan and 345 overseas in 2025, and Clarivate Top 100 Global Innovators recognition for the fifth consecutive year. The other strengths rest on the same proprietary process know-how — co-created technology roadmaps that evaluate technologies "for the next four generations and beyond" with customers, "numerous development PORs" (process of record) in the frontend business, and the EUV coater/developer position — so proprietary process technology, reinforced by qualification in customers' process flows, is the moat source. | network effects Item 1 attributes the hard-to-replicate part of the portfolio to connectivity rather than to real estate: "the network density, interconnection infrastructure and connectivity-centric customers in certain of our data centers have led to the organic formation of densely connected data communities that are difficult for competitors to replicate." That community sits on over 232,000 cross connects in over 55 metros, so each network and cloud that lands makes the same building worth more to the next tenant. |
| Leadership | co leader The CEO's message describes Tokyo Electron as "one of the world's leading suppliers of semiconductor production equipment" and states a "goal of becoming number one globally" — it does not claim to be the largest supplier overall — while by its own estimate it ranks No. 1 in six charted segments (diffusion furnace, batch deposition, metal deposition, coater/developer, gas chemical etch, wafer prober), No. 2 in plasma etch and bonders, and No. 3 in cleaning. | co leader Item 1 claims the title of "the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions," but the Competition section names Equinix and NTT as operators of properties "similar to ours in some of the same metropolitan areas," plus Global Switch and regional operators abroad — a shared top tier on the company's own telling, not a solitary one. |
| Pricing power | moderate Gross profit margin held in a 44.6%-47.1% range over fiscal 2022-2026, including fiscal 2024's sales decline, but in fiscal 2026 it fell 1.8 points to 45.3% "due to factors such as higher raw material prices and increased labor costs" even as net sales reached a record, and the CEO lists "revising prices appropriately with respect to cost increases caused by inflation" among five initiatives needed to improve the operating margin. | strong FY2025 renewals signed re-priced upward in every bucket — +27.0% on greater-than-1 MW space ($146 to $186 per square foot), +4.6% on 0-1 MW ($268 to $280) and +43.0% on other ($49 to $71) — and MD&A expects average aggregate rental rates on 2026 renewals to be positive against the rates currently paid for the same space "on a GAAP basis and on a cash basis." On costs, the filing says utilities expense "is our largest expense category" and that "the vast majority of the expense is passed directly through to our customers," which it credits with significantly mitigating exposure to power-cost increases rather than removing it. The cap: Item 1A warns competitor development could still force rates down. |
| Summary | Tokyo Electron makes wafer fab equipment for what its Integrated Report 2026 calls the "four key processes necessary for semiconductor scaling: deposition, coater/developer, etch, and cleaning", plus wafer probers and bonders for test and advanced packaging. The report grounds its edge in breadth and incumbency: leading share estimates in most of its segments, an estimated 100% share of EUV coater/developers, an installed base of approximately 100,000 units, industry-leading by its own estimate, feeding a Field Solutions business that sold ¥626.0 billion of parts, services, used equipment and modifications in fiscal 2026, and the industry's largest patent portfolio. Fiscal 2026 net sales were a record ¥2,443,533 million, but gross profit margin fell 1.8 points to 45.3% on higher raw material prices and labor costs, and operating margin fell 3.1 points to 25.6% as R&D expenses rose 11.1% to ¥277,866 million. China accounted for 34.1% of fiscal 2026 net sales, down from 41.7% the year before. | Digital Realty rents space, power and connectivity rather than compute: at 2025 year-end its portfolio held 310 data centers and roughly 57.6 million rentable square feet across more than 55 metros in over 30 countries, about 84.7% leased, serving more than 5,000 customers. Two different businesses sit inside that footprint. The greater-than-1 MW wholesale side is a capital-and-power race — 769 MW of projects underway with 64% pre-leased, and land that "could accommodate over 3,500 megawatts of additional data center capacity" — where the 10-K names Equinix, NTT, Global Switch and "various private operators" as rivals and warns that added supply can push rents down. The colocation and interconnection side is the defended half: over 232,000 cross connects and the "densely connected data communities" Item 1 says competitors cannot easily replicate, reinforced by contracts the filing describes as generally running 5-10+ years on large deployments and by improvements "installed at our customers' expense." FY2025 leasing supports that read — renewals signed re-priced +27.0% on greater-than-1 MW space and +4.6% on 0-1 MW — while customer concentration is the offsetting exposure, with the largest customer at roughly 11.7% of annualized recurring revenue. |
| Chain position | Upstream equipment supplier to chipmakers: fiscal 2026 new-equipment sales of ¥1,775.4 billion went 59% to non-memory (logic, foundry, others), 31% to DRAM and 10% to NAND; by region, China took 34.1%, South Korea 22.3% and Taiwan 20.4% of net sales. | Landlord to the AI stack — sells the space, power and interconnection that cloud, network and enterprise tenants run compute in (Oracle, IBM, Meta Platforms, AT&T, Comcast and Lumen are among the customers named in Item 1), with roughly 2.9 GW of total in-place IT capacity. |
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| Long-horizon vote | +0.13 at weight 0.20 · swarm bearish Editorial prior, not backtested. | +0.17 at weight 0.20 · swarm neutral Editorial prior, not backtested. |