Market fluctuation risk in the electronic materials business
First written in FY2016. 6 of 22 entries say "Worsened", first in FY2020-Q2. Latest entry: FY2026.
Tokuyama moved to the "Worse" side of this theme in 2019, 1 year after the typical company in this theme (2018).
The whole theme swung hardest in 2022: 5 of 8 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As a result, segment sales were ¥91,675 million, up 5.3% year on year, and operating income was ¥15,681 million, up 63.6% year on year, resulting in higher sales and earnings.」
Operating income in the electronic advanced materials segment increased 63.6% year on year due to improvements in sales of semiconductor-related products, manufacturing costs and product mix. - FY2026-H1MitigatedAnnual report
「Polysilicon for semiconductors generated higher earnings due in part to improved capacity utilization and the recognition of reversals of inventory valuation losses.」
Operating income in the electronic advanced materials segment was ¥6,972 million, up 140.5% year on year. Polysilicon showed partial improvement in the impact of market volatility due in part to improved capacity utilization. - FY2025-H1MitigatedAnnual report
「Polysilicon for semiconductors generated higher earnings due in part to increased sales volumes.」
Although the impact of slowing semiconductor market conditions and China's economic slowdown remains evident by product, polysilicon for semiconductors generated higher earnings due to increased sales volumes. Operating income for the electronic advanced materials segment as a whole increased 363.8% year on year, indicating partial improvement in the impact of market volatility. - FY2024-Q3WorsenedAnnual report
「As a result, segment sales were ¥54,064 million, down 19.4% year on year, and operating income was ¥551 million, down 92.1% year on year, resulting in lower sales and earnings.」
Due to slowing semiconductor market conditions and China's economic slowdown, sales in the electronic advanced materials segment declined 19.4% year on year and operating income declined 92.1% year on year. The impact of market volatility has been quantified at an even greater level than in the previous quarter. - FY2024-Q2WorsenedAnnual report
「Although sales price revisions were advanced for polysilicon for semiconductors, sales volumes declined due to slowing semiconductor market conditions, resulting in lower earnings. Although sales volumes of IC Chemical declined due to slowing semiconductor market conditions, earnings improved due in part to lower raw material costs. Sales volumes of dry silica declined due to slowing semiconductor market conditions and China's economic slowdown, resulting in lower earnings.」
Sales volumes of several electronic materials products declined due to slowing semiconductor market conditions and China's economic slowdown. Operating income in the electronic advanced materials segment was ¥625 million, down 81.4% year on year. - FY2024-Q1WorsenedAnnual report
「Although sales volumes of polysilicon for semiconductors declined due to slowing semiconductor market conditions, performance was on par with the same period of the previous year because sales price revisions were advanced. Sales volumes of IC Chemical declined due to slowing semiconductor market conditions, resulting in lower earnings. Although domestic sales of dry silica remained at the same level as the same period of the previous year, overseas sales volumes declined due to China's economic slowdown, resulting in lower earnings. Although sales volumes of thermal materials declined due to slowing semiconductor market conditions, performance was on par with the same period of the previous year because sales price revisions were advanced.」
Sales volumes of several electronic materials products declined due to slowing semiconductor market conditions and China's economic slowdown. Sales in the electronic advanced materials segment were ¥18,352 million and operating income was ¥744 million, down 46.6% year on year. - FY2023Diverging product impacts and slowing market conditionsAnnual report
「Although IC Chemical advanced sales price revisions, sales volumes declined due to higher raw material and fuel prices and other factors, as well as the impact of slowing semiconductor market conditions, resulting in lower earnings.」
While some products generated higher earnings due to firm semiconductor-related demand or price revisions, IC Chemical posted lower earnings due to slowing semiconductor market conditions and higher raw material and fuel prices. The divergence in impacts by product continues. - FY2023-Q3Diverging product impacts and partial improvementAnnual report
「Although polysilicon for semiconductors faced higher manufacturing costs due to higher raw material and fuel prices and other factors, advances in sales price revisions and other measures resulted in higher earnings. Although demand for IC Chemical was at the same level as the previous year and sales price revisions were advanced, higher raw material and fuel prices and other factors resulted in lower earnings. Although dry silica faced higher raw material and fuel costs, progress in domestic sales price revisions and higher export prices resulted in higher earnings. Sales volumes of thermal materials remained firm, particularly for semiconductor manufacturing equipment, resulting in higher earnings.」
Among semiconductor-related products, polysilicon, dry silica and thermal materials generated higher earnings due to price revisions and other factors, while IC Chemical posted lower earnings due to higher raw material and fuel prices and other factors. While market and cost impacts continue to diverge by product, some products showed improvement. - FY2023-Q2Continued divergence in product impactsAnnual report
「Although price revisions were advanced for polysilicon for semiconductors, higher manufacturing costs due to higher raw material and fuel prices and other factors resulted in lower earnings. Demand for IC Chemical applications in semiconductors remained firm, and although price revisions were advanced, higher raw material prices and other factors resulted in lower earnings. Although dry silica faced higher raw material costs, progress in domestic sales price revisions and higher export prices resulted in higher earnings. Although sales volumes of thermal materials remained firm, performance was on par with the same period of the previous year due in part to increased research and development expenses.」
In electronic materials, products with firm demand and sales volumes nevertheless posted lower earnings due to higher raw material and fuel prices, while dry silica generated higher earnings due to price revisions and higher export prices. The divergence in impacts by product continues. - FY2023-Q1RestatedAnnual report
「Although sales of polysilicon for semiconductors remained firm against a backdrop of wider 5G adoption and additional data center capacity, higher manufacturing costs due in part to higher raw material and fuel prices resulted in lower earnings. Although sales of IC Chemical remained firm, higher raw material prices and other factors resulted in lower earnings. Although dry silica faced higher raw material costs, higher export prices and other factors resulted in higher earnings. Although sales volumes of thermal materials remained firm, performance was on par with the same period of the previous year due in part to increased research and development expenses at the Advanced Technology Commercialization Center.」
While sales of some products remained firm against a backdrop of semiconductor-related demand, higher raw material and fuel prices and research and development expenses resulted in higher or lower earnings depending on the product. The divergence in market impacts by product continues. - FY2022-Q3RestatedAnnual report
「Although raw material prices increased, sales of polysilicon for semiconductors remained firm against a backdrop of the rollout of 5G and increased remote working, resulting in higher earnings. Although sales volumes of IC Chemical increased, particularly for overseas markets, higher raw material prices and other factors resulted in lower earnings. Although raw material prices increased, sales volumes of dry silica increased, particularly for use in semiconductor polishing materials, resulting in higher earnings. Although sales volumes of thermal materials remained firm, performance was on par with the same period of the previous year due in part to increased research and development expenses at the Advanced Technology Commercialization Center.」
Against a backdrop of semiconductor-related demand, polysilicon and dry silica generated higher earnings, while IC Chemical posted lower earnings due to higher raw material prices and thermal materials performed on par with the same period of the previous year. The divergence in market and cost impacts by product continues. - FY2022-Q2RestatedAnnual report
「Sales of polysilicon for semiconductors remained firm against a backdrop of the rollout of 5G and increased remote working, resulting in higher earnings. Although sales volumes of IC Chemical increased, particularly for overseas markets, higher raw material prices and other factors resulted in lower earnings. Sales volumes of dry silica increased, particularly for use in semiconductor polishing materials, resulting in higher earnings. Although sales volumes of thermal materials remained firm, performance was on par with the same period of the previous year due in part to increased research and development expenses at the Advanced Technology Commercialization Center.」
In electronic materials, polysilicon and dry silica generated higher earnings, while IC Chemical posted lower earnings due to higher raw material prices and thermal materials performed on par with the same period of the previous year. Market and cost impacts continue to diverge by product. - FY2022-Q1Diverging product impacts and partial recoveryAnnual report
「Sales of polysilicon for semiconductors remained firm against a backdrop of the rollout of 5G and increased remote working, resulting in higher earnings. Although sales volumes of IC Chemical increased, particularly for overseas markets, higher raw material prices and other factors resulted in lower earnings. Sales volumes of dry silica increased, particularly for use in semiconductor polishing materials, resulting in higher earnings.」
Against a backdrop of semiconductor-related demand, sales of polysilicon and dry silica increased and earnings rose, while IC Chemical posted lower earnings despite higher sales volumes due to higher raw material prices and other factors. The impact of market conditions continues to diverge by product. - FY2021-Q3RestatedAnnual report
「Sales of polysilicon for semiconductors remained firm against a backdrop of the rollout of 5G and increased remote working, resulting in higher earnings. Sales volumes of high-purity chemicals for the electronics industry increased, particularly for overseas markets, resulting in higher earnings. Sales volumes of dry silica declined due in part to the spread of COVID-19, resulting in lower earnings.」
In specialty products, polysilicon for semiconductors and high-purity chemicals for the electronics industry remained firm and generated higher earnings, while sales volumes of dry silica declined due to the spread of COVID-19, resulting in lower earnings. The divergence in market impacts by product continues. - FY2021-Q2Continued divergence in market impactsAnnual report
「Sales of polysilicon for semiconductors remained firm against a backdrop of the rollout of 5G and increased remote working, resulting in performance on par with the same period of the previous year. Sales volumes of high-purity chemicals for the electronics industry increased, particularly for overseas markets, resulting in higher earnings. Sales volumes of dry silica declined due in part to the spread of COVID-19, resulting in lower earnings.」
In the specialty products segment, polysilicon for semiconductors and high-purity chemicals for the electronics industry remained firm or increased, while sales volumes of dry silica declined due to the spread of COVID-19. The divergence in market impacts by product continues. - FY2021-Q1Diverging market impactsAnnual report
「Sales of polysilicon for semiconductors remained firm against a backdrop of the rollout of 5G and increased remote working, resulting in performance on par with the same period of the previous year. Sales volumes of high-purity chemicals for the electronics industry increased, particularly for overseas markets, resulting in higher earnings. Sales volumes of dry silica declined at Tokuyama Kako (Zhejiang) Co., Ltd. due in part to the impact of US-China trade tensions, resulting in lower earnings.」
While demand and sales of polysilicon for semiconductors and high-purity chemicals for the electronics industry remained firm or increased, sales volumes of dry silica declined due to the impact of US-China trade tensions. The impact of the electronic materials market continues to vary by product. - FY2020-Q3WorsenedAnnual report
「Although there were signs of recovery in the semiconductor market, sales volumes of polysilicon and thermal materials for semiconductors declined due to customers' inventory adjustments, resulting in lower earnings. As a result, segment sales were ¥38,452 million, down 8.6% year on year, and operating income was ¥4,474 million, down 34.8% year on year, resulting in lower sales and earnings.」
Although there were signs of recovery in the semiconductor market, sales volumes of polysilicon and thermal materials declined due to customers' inventory adjustments. Operating income in the specialty products segment fell 34.8% year on year, with the decline widening from the 34.6% decrease for the cumulative previous quarter. - FY2020-Q2WorsenedAnnual report
「Sales volumes of polysilicon and thermal materials for semiconductors declined due to the delayed recovery in the semiconductor market, resulting in lower earnings. As a result, segment sales were ¥24,603 million, down 8.3% year on year, and operating income was ¥2,813 million, down 34.6% year on year, resulting in lower sales and earnings.」
Due to the delayed recovery in the semiconductor market, sales volumes of polysilicon and thermal materials declined, and operating income in the specialty products segment fell 34.6% year on year. The impact of market volatility is shown in more specific and larger figures than in the previous quarter. - FY2020-Q1MaterialisedAnnual report
「Sales remained sluggish, particularly for core products such as semiconductor-related products.」
Sales, particularly of semiconductor-related products, remained sluggish, indicating that market volatility in the electronic materials business is being reflected in actual sales trends. - FY2016First statedAnnual report
「The information and electronics industry is subject to pronounced cyclical fluctuations, and any deterioration in earnings from the electronic materials business could materially affect the Group's operating results and financial condition.」
The electronic materials business is one of the Group's core businesses, and market cyclicality is disclosed as a risk.