Dependence on Specific Suppliers and Risk of Changes to Agency Agreements
First written in FY2016. 8 of 14 entries say "Mitigated", first in FY2017-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 23 of 77 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Proportion of purchases from the principal suppliers (manufacturers), the top 3 suppliers, as a percentage of our group's consolidated purchases」
The proportion of purchases from the top 3 principal suppliers declined from 59.6% to 57.4%, easing supplier concentration on a numerical basis. However, both the likelihood of occurrence and the potential impact were assessed as relatively high. - FY2025WorsenedAnnual report
「Proportion of purchases from the principal suppliers (manufacturers), the top 3 suppliers, as a percentage of our group's consolidated purchases: 49.5% in the previous consolidated fiscal year and 59.6% in the current consolidated fiscal year」
Concentration of purchases among the top 3 principal suppliers increased from 49.5% to 59.6%, and supplier dependence risk increased on a numerical basis. - FY2024MitigatedAnnual report
「Proportion of purchases from the principal suppliers (manufacturers), the top 3 suppliers, as a percentage of our group's consolidated purchases」
The proportion of purchases from the top 3 suppliers declined from 61.2% to 49.5%, easing supplier concentration on a numerical basis. Diversification measures also continued through developing new suppliers and converting high-value-added products into system solutions. - FY2023WorsenedAnnual report
「Proportion of purchases from the principal suppliers (manufacturers), the top 3 suppliers, as a percentage of our group's consolidated purchases: 51.7% in the previous consolidated fiscal year and 61.2% in the current consolidated fiscal year」
Concentration of purchases among the top 3 suppliers increased from 51.7% to 61.2%. The stated background was a temporary sharp expansion in business with overseas assembly manufacturers, and supplier dependence risk increased on a numerical basis. - FY2022MitigatedAnnual report
「Proportion of purchases from the principal suppliers (manufacturers), the top 3 suppliers, as a percentage of our group's consolidated purchases: 59.2% in the previous consolidated fiscal year and 51.7% in the current consolidated fiscal year」
The proportion of purchases from the top 3 principal suppliers declined from 59.2% to 51.7%. Diversifying the products handled through deeper engagement with existing suppliers in Japan, Europe and the United States and developing new suppliers was also identified as a measure. - FY2021WorsenedAnnual report
「Proportion of purchases from the principal suppliers (manufacturers), the top 3 suppliers, as a percentage of our group's consolidated purchases: 54.5% in the previous consolidated fiscal year and 59.2% in the current consolidated fiscal year」
The proportion of purchases from the top 3 suppliers increased from 54.5% to 59.2%, raising supplier concentration. Meanwhile, diversification measures continued through deeper engagement with and development of existing and new suppliers in Japan, Taiwan, Europe and the United States. - FY2020Changes in the composition of major suppliersAnnual report
「SK hynix Japan, Inc. | ¥10,029,562 thousand | 24.9% | LG Display Japan, Inc. | ¥8,499,237 thousand | 21.1%」
The proportion of total purchases from SK hynix Japan declined from 31.6% to 24.9%, while that from LG Display Japan increased from 15.2% to 21.1%. The supplier concentration profile changed. - FY2019Changes in the composition of major suppliersAnnual report
「While maintaining close relationships with both companies, our group is working to diversify the products it handles and reduce excessive dependence on specific suppliers (manufacturers) by expanding sales of products from other companies.」
The proportion of total purchases from SK hynix Japan increased from 25.9% to 31.6%, while that from LG Display Japan declined from 25.4% to 15.2%. Purchases through Fumaister Electronics newly accounted for 17.6%. - FY2019-Q1MitigatedAnnual report
「3 years from 26 June 2018. Automatically renewed for successive 1-year terms thereafter.」
The electronic components sales agency agreement with GLOBALFOUNDRIES U.S. Inc. changed from the previous agreement to a new 3-year agreement after the previous agreement expired, with automatic renewal for successive 1-year terms thereafter. Uncertainty regarding continuation of the agreement was reduced. - FY2018-Q3MitigatedAnnual report
「LG Display Japan, Inc. | LCD products | Japan | Basic transaction agreement | 5 years from 1 January 2018 through 31 December 2022」
The basic transaction agreement with principal supplier LG Display Japan was extended for 5 years, reducing uncertainty regarding continuation of the agreement. - FY2018-Q1MitigatedAnnual report
「On 30 June 2017, the contract term was extended by 12 months.」
The electronic components sales agency agreement with GLOBALFOUNDRIES U.S. Inc. was extended through 30 June 2018, further reducing short-term uncertainty regarding continuation of the agreement. - FY2017MitigatedAnnual report
「While maintaining close relationships with both companies, our group is working to diversify the products it handles and reduce excessive dependence on specific suppliers (manufacturers) by expanding sales of products from other companies.」
Measures to reduce dependence on principal suppliers continued, with the proportion of total purchases from LG Display Japan declining from 37.0% to 28.7% and that from SK hynix Japan declining from 16.1% to 14.2%. - FY2017-Q1MitigatedAnnual report
「On 30 June 2016, the contract term was extended by 12 months.」
The electronic components sales agency agreement with GLOBALFOUNDRIES U.S. Inc. was extended through 30 June 2017, reducing short-term uncertainty regarding continuation of the agreement. - FY2016First statedAnnual report
「The principal suppliers (manufacturers) to our group are LG Display Japan, Inc. and SK hynix Japan, Inc., and we have entered into basic transaction agreements with both companies.」
The proportions of total purchases were 37.0% for LG Display Japan and 16.1% for SK hynix Japan in the current fiscal year.