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Advantest to issue 100 billion yen in convertible bonds to boost AI chip testing equipment supply
Wednesday, April 1, 2026 at 08:12 PM
Advantest plans to issue 100 billion yen in convertible bonds to fund production capacity increases for AI semiconductor testing equipment. The capital will specifically support the expansion of supply chains required to meet growing demand for advanced chip testing solutions.
Context
Advantest is issuing 100 billion yen (approximately $660 million) in convertible bonds to aggressively scale its production of AI chip testing equipment. This move follows a period of explosive growth where the company recorded record high sales of 779.7 billion yen in the fiscal year ending March 2025, a 60.3% increase year-over-year. The new capital will specifically fund the acceleration of manufacturing capacity for system-on-chip (SoC) testers, which are critical for validating the high-performance computing hardware used in generative AI and 5G applications.
Management has set an ambitious target to reach an annual capacity of at least 5,000 SoC testers by March 2027, a significant jump from the 3,000-unit capacity reported in mid-2025. This expansion is essential as AI-related semiconductors become increasingly complex, requiring longer and more sophisticated testing cycles. By securing this funding, Advantest aims to maintain its dominant market position and resolve supply chain bottlenecks that have hampered delivery schedules amid the global surge in AI infrastructure spending.
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