Updated October 28, 2025
1. Mid- to Long-term Management Policy: the “Grand Design”
Since 2018, Advantest has been setting its mid- to long-term management policy, the “Grand Design,” which defines the commitments and strategies needed for Advantest to fully strive as a company that embodies its corporate mission and purpose of “Enabling Leading-edge Technologies.”
Under the 2018 version of the “Grand Design,” Advantest executed on two mid-term management plans: the First Mid-term Management Plan (MTP1), and the Second Mid-term Management Plan (MTP2), and achieved market share gains, business expansion, and profitability improvement at a scale and speed that exceeded the original plans.
Then, in 2024, in order to develop further and ensure that Advantest continues to be of greatest value to its customers and society, Advantest refreshed its “Grand Design” to reflect the changes in its management and business structure to date and the latest outlook for the long-term business environment. Under this refreshed “Grand Design,” Advantest will strive to expand the value it provides to stakeholders and strengthen the business foundation.
Vision Statement
Be the most trusted and valued test solution company in the semiconductor value chain
By expanding the economic and social benefits it provides, Advantest aims to become the most trusted and valued test solution company in the semiconductor value chain for all its stakeholders.
Long-term management goals
Semiconductors will be essential for the realization of a sustainable society and the development of various industries. In fact, almost all of Advantest’s businesses are related to the realization and diffusion of semiconductors with superior performance. Therefore, Advantest believes that developing business activities based on its purpose and mission, and contributing to the development and diffusion of semiconductors with superior performance through our leading-edge technologies, will continue to directly contribute to a “safer, more secure and more comfortable” society while realizing its own sustainable growth. Advantest will strive to promote initiatives that lead to a sustainable society while focusing on solving customer issues, including the increasing complexity in semiconductor testing. Through these efforts, Advantest aims to expand the economic and social value it provides to each stakeholder in a multifaceted and well-balanced manner.
2. Overview of the Third Mid-term Management Plan (MTP3, FY2024-FY2026)
Advantest expects that the semiconductor test-related market to continue to grow in the medium- to long-term, while experiencing in short-term down cycles. In addition, Advantest believes that its business opportunities will expand over the medium- to long-term, not only as the semiconductor market grows, but also as the industry faces the structural challenges of managing the complexity of semiconductors.
Against such an industry landscape, Advantest will strive to expand the value it provides to stakeholders over the medium- to long-term by promoting its Third Mid-term Management Plan, which was formulated in accordance with the refreshed “Grand Design.”
Targeted Management Metrics
In MTP3, Advantest will strive to enhance its corporate value by increasing sales, improving profitability, and improving capital efficiency through the four strategies. Given this framework, the management metrics that are emphasized in MTP3 are sales, operating profit margin, net income, return on invested capital (ROIC), and basic earnings per share (EPS). Advantest has been endeavoring to grow all these numbers.
In FY2024, the first year of MTP3, Advantest delivered record-breaking results, driven by robust tester demand for HPC/AI-related semiconductors. In FY2025, as demand for HPC/AI-related test solutions has sustained momentum, Advantest expects to achieve record-breaking results for the second consecutive year. Taking into account these developments and the currently foreseeable business outlook for FY2026, in October 2025, Advantest has revised the management targets for MTP3 as follows. In order to evaluate the progress of the plan from a medium- to long-term perspective, Advantest uses three-year averages for below targeted metrics to level the impact of industry cycles.
| FY2024-FY2026 Avg. | ||
|---|---|---|
| Previously Announced Targets*1（As of June 2024） | Revised Targets*1, 2 (As of October 2025) | |
| Sales | ¥560-700B | ¥835-930B |
| Operating profit margin | 22-28% | 33-36% |
| Net Income | ¥93-147B | ¥207-248B |
| Return on Invested Capital*3 (ROIC) | 18-28% | 34-39% |
| Basic EPS | ¥127-202 | ¥284-341 |
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*1The exchange rates used in the previous announcement were 140 yen to the US dollar and 155 yen to the Euro. The revised targets use the same exchange rates for FY2025 Q3-Q4 and FY2026.
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*2Actual rates in FY2024 were 153 yen to the US dollar and 164 yen to the Euro, FY2025 Q1 were 146 yen to the US dollar and 162 yen to the Euro, and FY2025 Q2 were 146 yen to the US dollar and 170 yen to the Euro.
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*3Return on Invested Capital = NOPAT / Invested capital (average at beginning and end of period). NOPAT = Operating income x (1 - tax ratio 25%). Invested Capital = Borrowings + Corporate bonds + Total equity, with excluding Lease liabilities.
Strategies
１. Outpace the growth in our core market
In the core market, Advantest expects new growth opportunities to arise from increased semiconductor production volumes, higher performance semiconductors, and the increasing complexity of semiconductors. To seize these opportunities, Advantest will create new value that brings “Automation of Test,” or improved efficiency in semiconductor testing, to its customers, not only by improving the performance of individual test solutions, but also through the organic integration of its diverse portfolio of products and solutions, and collaborations with external partners. Through these efforts, Advantest will strive to continue to grow faster than its core market.
２. Expand adjacently / new businesses
As semiconductors continue to become more high-performance and complex, there is demand for broader and more integrated test solutions. Advantest has been expanding its business into system level tests and test peripherals, and will continue to further increase the value it provides to customers. More specifically, Advantest will utilize its install-based products to promote its field services and Advantest Cloud Solutions™ and Applied Research & Venture Team to create business opportunities.
３. Drive operational excellence
Advantest will continue to solve testing issues in the semiconductor industry by utilizing in-house technologies, know-how, and resources on a cross-functional basis. In addition to the above, to become a company that is valuable to all of the stakeholders, Advantest believes that it needs to improve not only the excellence of its products and technologies, but also the efficiency and effectiveness of all of its operations. To this end, Advantest is committed to accelerating internal operation and streamlining resources by using DX (digital transformation), building a resilient supply chain, strengthening human capital through recruiting competent talents and expanding employee training, and improving internal productivity through the use of AI and data analytics.
４. Enhance sustainability
Advantest will further strengthen its foundation for enhancing corporate value through proactive and positive action on sustainability issues such as climate change and human rights, the execution of responsible business activities, including legal compliance and adherence to ethical business practices, and the reinforcement of risk management and enhancement of corporate governance, to earn greater trust from each stakeholder. Advantest will also strive to cultivate and instill a common culture and shared values within the company, as these are the starting points for promoting initiatives related to sustainability.