Developing High-Value-Added Products and Markets to Capture Demand for 5G, IoT and Data Centers

「In semiconductors and electronics, the company is capturing gas demand through large-scale plant investments and the development of new customers in response to the expansion and enhancement of advanced semiconductor plants, particularly those serving generative AI applications.」

「The Digital Unit saw increased sales of gas supply systems for advanced semiconductor manufacturing, as well as gas purification equipment and thermal control equipment for semiconductor manufacturing equipment, against a backdrop of strong semiconductor-related demand for generative AI.」

「As manufacturing capacity in Japan's digital and semiconductor industries continued to expand, the company pursued gas demand by developing new customers and investing in equipment, including the expansion of large-scale plants. It also worked to expand its electronics-related business, including the supply of specialty chemicals and the sale of gas purification equipment.」

「The Electronics business was affected by inventory adjustments and other factors resulting from weak semiconductor market conditions, leading to sluggish sales of gas-related equipment and thermal-control equipment for semiconductor manufacturing equipment. However, on-site gas supply to major semiconductor plants maintained a certain operating rate, while sales of high-purity chemicals, coating materials and special chemical supply equipment expanded against the backdrop of new construction and expansions at major semiconductor plants. As a result, these factors offset the negative impact and business remained solid.」

「The Electronics business saw lower sales of specialty chemicals and thermal-control equipment for semiconductor manufacturing equipment as semiconductor demand declined. However, on-site gas supply to major semiconductor manufacturers remained generally at high utilisation, while customers continued to expand their facilities in anticipation of medium- to long-term demand growth. Demand for specialty-chemical supply equipment and related construction therefore remained firm, resulting in performance broadly in line with the same period of the previous year.」

「In addition to investing in gas-supply plants to meet capacity expansions by domestic semiconductor-device manufacturers, the Electronics-related business worked under a new operating structure integrating industrial gases and chemicals to develop materials addressing advanced needs and strengthen customer relationships by leveraging the Group's comprehensive capabilities.」

「In the electronics business, onsite gas supply to major semiconductor manufacturers continued to operate at high utilization, while sales of specialty chemical materials and related supply equipment remained strong. The company also focused on capturing peripheral demand associated with customers' capacity expansions, and sales of gas purification systems and thermal-control equipment for semiconductor manufacturing equipment also remained strong.」

「The Equipment and Construction Business focused on winning projects related to semiconductor manufacturers' capacity expansion investments. Sales expanded not only of ancillary construction and supply equipment for specialty chemicals, but also of gas purification systems and thermal control equipment for semiconductor manufacturing equipment.」

「The Equipment and Construction Business focused on winning projects related to semiconductor manufacturers' capacity expansion investments. Sales expanded not only of ancillary construction and supply equipment for specialty chemicals, but also of gas purification systems and thermal control equipment for semiconductor manufacturing equipment.」

「In this segment, the Group is transforming its business portfolio by expanding the Electronics business, where the market is growing, and overseas businesses, particularly in India, where high growth is expected. In Japan, semiconductor manufacturers leading global semiconductor production are increasing capacity. The Group is seeking to capture this gas demand through capital investment on an unprecedented scale, while expanding businesses such as gas purification equipment and thermal-control equipment for semiconductor manufacturing equipment, with the aim of securing a position in the Electronics field comparable to that of the world's major gas companies.」

「The company is expanding its electronics business by increasing large-scale nitrogen gas supplies, specialty chemical supplies and equipment construction for the rapidly expanding semiconductor sector. In India, where substantial growth is expected, it is also pursuing expansion of its steel on-site business and industrial gas merchant business, centered on its large-scale oxygen gas supply plant technology, and advancing a transformation of its business portfolio.」

「In the Aerosol Business, contract manufacturing of cosmetics declined as inbound demand disappeared and people continued to refrain from going out. However, sales of insecticides and model paints increased as people spent more time at home. The business also responded to increased demand by ramping up production of alcohol-based disinfectants and performed steadily.」

「The company actively developed markets with a view to turning new needs created by the “new normal” following the COVID-19 shock into future growth opportunities. These included gases, equipment and materials for the electronics-related sector, where demand is expanding in response to telework and the development of next-generation communications standards such as 5G; infection-control products supporting medical facilities; and home-cooking products addressing stay-at-home demand.」

「To respond to changes in market needs during the COVID-19 pandemic, we pursued the development of high-value-added products and the cultivation of new markets, focusing on equipment and materials for the electronics sector, where demand is expanding against the backdrop of next-generation communications standards (5G) and IoT, as well as infection-control measures in the healthcare business. For gas supply to the electronics sector, we steadily installed gas plants to meet the expansion and increased production of domestic semiconductor manufacturers driven by growing demand from data centers and 5G-related applications, and sales volumes remained solid.」