Semiconductor Silicon Cycle and Product Price Fluctuations
First written in FY2016. 13 of 41 entries say "Worsened", first in FY2017-Q2. Latest entry: 2026-11-10.
Shinden Hightex moved to the "Worse" side of this theme in 2019, 2 years after the typical company in this theme (2017).
The whole theme swung hardest in 2023: 11 of 18 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026MaterialisedAnnual report
「Memory market conditions are experiencing price increases against a backdrop of tight supply and demand, and changes in the procurement environment are affecting business operations.」
Tight supply and demand and changes in the procurement environment occurred in the recovery and price-increase phase of the memory market, affecting lower revenue from the semiconductor products segment and a higher cost ratio. - FY2026-H1MaterialisedAnnual report
「Revenue declined because supply constraints for conventional memory-related products prevented the company from fully meeting customer demand, because certain automotive-related businesses were transferred to a different distribution channel as initially anticipated, and because of the year-on-year decline following the previous year's foundry business.」
The transition to new semiconductor generations and supply constraints resulted in lost sales opportunities for conventional memory-related products, and the semiconductor products segment decreased 21.3% year on year. - FY2025MaterialisedAnnual report
「In the current consolidated fiscal year, memory and display market conditions bottomed out and the general-purpose, high-volume business increased. At the same time, the emergence of new products resulting from technological innovation exposed a mismatch with demand for conventional memory.」
The company states that, alongside the recovery in market conditions and growth in the general-purpose, high-volume business, a mismatch between new products resulting from technological innovation and demand for conventional memory became apparent in actual operations. - FY2025-H1MitigatedAnnual report
「In the electronics industry in which our group operates, memory market conditions, which had deteriorated, showed signs of bottoming out and recovery」
Memory market conditions showed signs of bottoming out and recovery, indicating an improvement from the deteriorating trend through the previous year. However, some markets remained in a correction phase. - FY2024Lower revenue from memory market conditions alongside signs of bottoming outAnnual report
「Although memory market conditions recently showed signs of bottoming out, revenue declined because the general-purpose, high-volume business contracted as market conditions deteriorated in the first half of the fiscal year.」
While memory market conditions showed signs of bottoming out, the decline in the general-purpose, high-volume business caused by deteriorating conditions in the first half of the fiscal year continued to weigh on full-year revenue. - FY2024-Q3Lower revenue from memory market conditions alongside signs of bottoming outAnnual report
「The non-memory products business remained solid. However, although conditions recently showed signs of bottoming out, revenue declined because the general-purpose, high-volume business contracted as memory market conditions deteriorated in the first half of the fiscal year.」
Non-memory products remained solid and memory market conditions showed signs of bottoming out. However, the decline in the general-purpose, high-volume business resulting from deteriorating conditions in the first half of the fiscal year continued, and the semiconductor products segment decreased 17.5% year on year. - FY2024-Q2WorsenedAnnual report
「Although the non-memory products business remained solid, revenue declined because the general-purpose, high-volume business contracted as memory market conditions continued to deteriorate.」
While non-memory products remained solid, the general-purpose, high-volume business contracted as memory market conditions continued to deteriorate, and revenue from semiconductor products decreased 24.7% year on year. - FY2024-Q1WorsenedAnnual report
「Revenue declined due to the continuing deterioration in memory market conditions since the second half of the previous fiscal year.」
Memory market conditions continued to deteriorate, and revenue from the semiconductor products segment decreased 9.2% year on year. - FY2023-Q3RestatedAnnual report
「As supply constraints for products such as memory and liquid-crystal displays have eased, falling prices and declining demand resulting from persistently high customer inventories of those products have been observed, and the uncertain situation continues.」
The company continues to identify the risk that prices for semiconductor- and LCD-related products may decline and demand may decrease because inventory levels remain elevated after supply constraints ease. - FY2023-Q2WorsenedAnnual report
「Concerns are growing that prices may decline as supply constraints for semiconductor- and display-related products ease, while demand may decrease because inventory levels for those products remain elevated. The situation therefore remains uncertain.」
The nature of the price and supply-demand risks has shifted from a period of price increases caused by the semiconductor shortage to concerns over lower product prices as supply constraints ease and lower demand due to elevated inventory levels. - FY2023-Q1RestatedAnnual report
「As a result of the yen's depreciation and our focus on capturing strong demand amid the global semiconductor shortage, sales increased 48.8% year on year to ¥6,873 million.」
While the global semiconductor shortage continued, operations continued to focus on capturing strong demand. - FY2022WorsenedAnnual report
「In the current consolidated fiscal year, prices rose due to the semiconductor shortage amid strong demand. However, the decline in prices and demand resulting from the aforementioned cyclical market conditions may cause product prices to fall significantly and delivery volumes to decline going forward, potentially affecting the operating results of our group.」
While the semiconductor shortage led to higher prices, the risk of future price declines, lower demand and reduced delivery volumes due to cyclical market conditions is explicitly identified. - FY2022-Q2RestatedAnnual report
「As a result of focusing on meeting strong demand, including pull-forward demand, despite the constraints posed by the global semiconductor shortage, and on sales of high-value-added products such as ASICs」
The global semiconductor shortage continued to constrain business operations. Meanwhile, the semiconductor products segment generated higher revenue by meeting strong demand and selling high-value-added products. - FY2022-Q1WorsenedAnnual report
「Revenue from the semiconductor products segment was ¥4,619 million, up 26.6% from the same quarter of the previous year, as the segment focused on meeting generally strong demand despite the constraints posed by the global semiconductor shortage.」
While the global semiconductor shortage was affecting actual business operations as a supply constraint, the semiconductor products segment generated higher revenue by meeting strong demand. - FY2021WorsenedAnnual report
「In addition, moves to exclude Chinese products arising from the recent escalation of US-China trade friction, as well as production stoppages caused by accidents such as fires at semiconductor manufacturing plants, have contributed to disruptions in the balance between supply and demand. Accordingly, supply volumes from memory manufacturers, including suppliers to our group, may fluctuate, making the supply-demand balance prone to disruption. Product prices may therefore continue to fluctuate significantly, and there is a risk that we may be unable to supply the quantities required.」
In addition to cyclical fluctuations in semiconductor market conditions, the risks of higher product prices and supply shortages arising from trade friction, plant accidents and fluctuations in supply volumes are becoming more pronounced. - FY2021-Q3Lower memory demand alongside recovery in automotive and peripheral-device applicationsAnnual report
「Although the semiconductor segment experienced lower demand for memory used in OA equipment, demand for automotive applications recovered and demand for memory used in smartphone peripherals increased. As a result, revenue recovered to ¥12,531 million, down 3.1% from the same quarter of the previous year.」
While demand for memory for OA applications continued to decline, the recovery in automotive demand and demand for smartphone peripherals provided support, and the semiconductor segment was described as being on a recovery trend while limiting the decline in revenue. - FY2021-Q2Lower memory demand alongside offsetting demand for peripheralsAnnual report
「The semiconductor segment offset lower memory demand for automotive and OA equipment with its smartphone peripheral-device business, but revenue was ¥7,797 million, down 9.7% from the same quarter of the previous year.」
The smartphone peripheral-device business offset lower memory demand for automotive and OA equipment, but revenue from the semiconductor segment declined 9.7% year on year. - FY2021-Q1WorsenedAnnual report
「Revenue from the semiconductor segment was ¥3,345 million, down 18.5% from the same quarter of the previous year, due to lower memory sales for automotive and office equipment.」
Revenue from the semiconductor segment decreased 18.5% year on year due to lower memory sales, while demand for semiconductor products remained soft. - FY2020Price declines showing signs of bottoming out alongside soft demandAnnual report
「Memory prices, which had been declining since the beginning of the fiscal year, showed signs of bottoming out in the second half. Demand for industrial equipment, electronic components and devices, and other products weakened as production was cut in industries experiencing declining exports.」
While memory prices showed signs of bottoming out in the second half of the fiscal year, demand remained soft, and revenue from the semiconductor segment decreased 2.2% year on year. - FY2020-Q3RestatedAnnual report
「The operating results for the nine-month period of the current consolidated fiscal year were achieved amid challenging conditions, including a decline in memory selling prices and lower demand for existing businesses compared with the same period of the previous year」
Memory prices continued to decline, as did demand for existing businesses, underscoring the challenging environment caused by semiconductor market conditions and fluctuations in product prices. Revenue from the semiconductor segment decreased 6.6% year on year. - FY2020-Q2WorsenedAnnual report
「The Company operated in a challenging business environment, including a substantial decline in memory prices from the buoyant same quarter of the previous year and a decrease in demand for high-value-added products for industrial equipment.」
The substantial decline in memory prices and the decrease in demand for high-value-added products for industrial equipment continued, and semiconductor segment sales declined 6.3% year on year. - FY2020-Q1WorsenedAnnual report
「Market conditions had been slowing since the second half of the previous year due to declining exports to China, the maturation of smartphone penetration and a pause in data center investment, and then deteriorated further as memory prices fell.」
The cyclical fluctuation in semiconductor market conditions has continued and worsened, reflected in falling memory prices and a further cooling of market conditions. - FY2019MaterialisedAnnual report
「Sales were ¥17,656 million, down 7.3% year on year, due to negative factors including the decline accompanying the sharp fall in memory prices from the fourth quarter.」
The cyclical fluctuation in semiconductor market conditions materialized as a sharp fall in memory prices, affecting the decline in semiconductor segment sales and profit. - FY2019-Q2MitigatedAnnual report
「In the semiconductor field, revenue was ¥9,218 million, up 5.0% year on year. Although there were negative factors, including lower deliveries following the end of the outsourced development project business for industrial equipment, strong memory demand, particularly for automotive equipment, supported revenue growth.」
Although the end of commissioned development projects was a negative factor, strong memory demand drove a 5.0% year-on-year increase in semiconductor segment sales. - FY2019-Q1MaterialisedAnnual report
「Segment profit was ¥14 million, down 63.0% year on year, as higher costs resulting from soaring prices and increased demand for low-margin products became negative factors for earnings and compressed gross profit.」
Soaring product prices and increased demand for low-margin products materialized as higher costs and compressed profit margins. - FY2018-Q3MitigatedAnnual report
「In the semiconductor field, revenue was ¥13,937 million, up 36.5% year on year, due to accelerated deliveries driven by strong memory demand and steady progress in the outsourced development project business.」
Strong memory demand drove a 36.5% year-on-year increase in semiconductor segment sales. Improvement from weak sales of driver ICs and memory through the previous fiscal year continued. - FY2018-Q2MitigatedAnnual report
「In the semiconductor field, strong memory demand and steady progress in the outsourced development project business resulted in revenue of ¥8,781 million, up 36.5% year on year.」
Against the backdrop of recovering and robust memory demand, semiconductor segment sales increased 36.5% year on year, and the improvement from the weak sales environment through the previous fiscal year continued. - FY2018-Q1MitigatedAnnual report
「In the semiconductor field, the recovery in memory market conditions provided a tailwind, and the outsourced development project business also progressed as planned. Revenue was ¥4,170 million, up 24.7% year on year.」
Semiconductor segment sales increased against the backdrop of a recovery in memory market conditions, improving from the weak sales environment reflected in the same period of the previous year. - FY2017RestatedAnnual report
「To minimize the impact of price fluctuations, the Company is expanding sales of products such as ASICs that are less affected by price fluctuations, confirming the production plans of customers and suppliers, and working to ensure appropriate ordering and sales-order management for commodity products such as DRAM.」
To address the semiconductor silicon cycle and product price fluctuations, the Company continues to expand sales of products such as ASICs and manage orders and sales orders. - FY2017-Q3RestatedAnnual report
「Although CPUs for automated machine tools performed well, sluggish sales of driver ICs for LCDs and memory resulted in semiconductor segment sales of ¥10,208 million, down 27.2% year on year.」
Although CPUs for automated machine tools performed well, sluggish sales of driver ICs for LCDs and memory continued, and semiconductor segment sales declined 27.2% year on year. - FY2017-Q2WorsenedAnnual report
「Although CPUs for amusement applications performed well, sluggish sales of driver ICs for LCDs and memory resulted in semiconductor segment sales of ¥6,434 million, down 30.4% year on year.」
Weak sales of driver ICs for LCDs and memory continued, and semiconductor segment sales declined 30.4% year on year. The decline widened from 25.6% in the previous quarter. - FY2017-Q1MaterialisedAnnual report
「Although CPUs for amusement applications performed well, sluggish sales of driver ICs for LCDs and memory resulted in semiconductor segment sales of ¥3,345 million, down 25.6% year on year.」
Weak sales in the semiconductor market were reflected in the results, with semiconductor segment sales declining 25.6% year on year. - FY2016First statedAnnual report
「The semiconductor market has repeatedly experienced severe downturns due to cyclical market conditions known as the “silicon cycle,” which is characteristic of the semiconductor industry.」
The Company identified expanding sales of products with limited price volatility, such as ASICs, and managing orders and sales orders as measures.