Improving market share in the semiconductor materials business

「Sales volume in the fourth quarter of the current consolidated fiscal year performed strongly at 19.34 million m, bringing cumulative sales volume for the current consolidated fiscal year to 66.53 million m.」

「Although business is currently performing well, we will also optimize the production systems and workforce allocation at the two Japan-South Korea sites in preparation for sudden changes in market conditions.」

「We are actively pursuing sales activities, including market share expansion, and working to achieve certain results in the second half. We are also focusing on developing applications for IC cards in Europe and targeting orders from the second half onward.」

「In this business, cumulative sales volume for the current consolidated fiscal year was 62.80 million m. The business entered an inventory adjustment phase from the interim consolidated accounting period through the third quarter, but shipments showed an upward trend in the fourth quarter due to the impact of China's subsidy program to promote replacement purchases of home appliances.」

「In this business, sales volume for the interim consolidated accounting period was 33.97 million m. Shipments in the first quarter of the current consolidated fiscal year performed strongly at 19.96 million m, but sales volume has been trending downward since the interim consolidated accounting period as the supply chain entered another inventory adjustment phase.」

「Full-year sales volume was 67.81 million m, up sharply by 14.0% from the previous fiscal year, but the business has not yet achieved a full-scale recovery compared with the 82.34 million m recorded in the fiscal year ended March 2022 under normal conditions.」

「Orders in the third quarter of the current consolidated fiscal year fell sharply to 13.12 million m. As the business entered an inventory adjustment phase similar to the previous fiscal year, average monthly shipments in the third quarter of the current consolidated fiscal year were 4.37 million m. (Normally, average monthly shipments are approximately 6.00 million m.) The inventory adjustment is expected to continue until around March 2024, with a full-scale recovery expected from April 2024 onward.」

「Sales volume for the first six months of the current consolidated fiscal year was 40.39 million m, continuing to perform steadily following the first quarter. Orders remained sluggish through the third quarter of the previous consolidated fiscal year due to excess LCD panel inventories following the COVID-19-related demand surge, but began to recover from the fourth quarter of the previous consolidated fiscal year, and remain strong.」

「Sales volume for the first quarter of the current consolidated fiscal year was 21.71 million m, up sharply by 34.4% year on year. The first quarter of the previous consolidated fiscal year saw substantial inventory adjustment due to excess LCD panel inventories following the COVID-19-related demand surge, but conditions began to recover from the fourth quarter of the previous consolidated fiscal year. Sales volume remained strong in the first quarter of the current consolidated fiscal year and recovered to pre-COVID levels.」

「In this business, full-year sales volume was 59.45 million m, down sharply by 27.8% from the previous fiscal year. However, the prolonged adjustment in panel inventories, which had continued for more than a year since the third quarter of fiscal 2021, finally showed signs of easing, and sales volume in March 2023 alone reached a record high since the company's founding.」

「In this business, sales volume for the first nine months of the current consolidated fiscal year was 41.81 million m, down sharply by 36.2% year on year. As previously reported, LCD panel inventories peaked from the end of June through the end of July, resulting in sluggish shipments of 9.86 million m during the second quarter of the current consolidated fiscal year. Shipments recovered to 15.79 million m in the third quarter of the current consolidated fiscal year.」

「In this business, sales volume for the first six months of the current consolidated fiscal year was 26.02 million m, down sharply by 47.8% year on year.」

「Sales volume for the first-quarter consolidated period fell sharply to 16.15 million m, down 38.7% year on year.」

「Revenue increased 0.9% year on year due to a higher proportion of high-value-added products, including 8K-compatible spacer tape, and the yen's depreciation against the South Korean won and Taiwan dollar.」

「Shipments for the six-month consolidated period reached a record 49.83 million m since the company's founding, while sales volume increased 15.4% year on year. Revenue rose sharply by 26.8% year on year as the mix shifted toward higher-value-added products and the yen weakened against the South Korean won and Taiwan dollar. The production capacity expansion planned for the current fiscal year will proceed as scheduled in preparation for increased sales from the next fiscal year onward.」

「Sales volume for the first-quarter consolidated period reached a record high of 26.62 million m since the company's founding, increasing sharply by 23.1% year on year. In June 2021 alone, combined production at the Japan and South Korea sites reached 10 million m for the first time.」

「Although revenue for the six-month consolidated period had declined 16.8%, revenue for the third quarter alone increased 1.9% year on year, and demand is forecast to exceed the prior-year level from the fourth quarter onward. Production adjustments at the two Japan-South Korea sites were lifted in September 2020, and we will expand production capacity going forward to meet strong demand.」

「Although volume is expected to recover to pre-COVID-19 crisis levels from the third-quarter consolidated period onward, we believe that it will take time to recover to the level of double-digit growth achieved for 4 consecutive fiscal years.」

「This business achieved growth of more than 20% for 4 consecutive fiscal years as the proportion of 4K televisions, which consume 2.7 times as much of our spacer tape, continued to expand. However, from the third-quarter consolidated period of the previous fiscal year onward, inventory adjustments by some customers due to US-China trade friction and the impact of the novel coronavirus resulted in negative growth for the first time in 5 fiscal years. In the current quarter, volume declined 5.1% year on year and revenue declined 14.4% due to the yen's appreciation and the South Korean won and Taiwan dollar's depreciation.」

「Full-year shipments increased 9%, but revenue declined by ¥16 million due to foreign-exchange effects, resulting in negative growth for the first time in 5 fiscal years.」

「To achieve the new five-year plan (NP5Y-Challenge50), we have positioned this business as a stable-growth business, and our policy of making it a driver of the Group's growth strategy remains unchanged. We will promote the expansion of the 4K television mix and strengthen mass-production capabilities for smartphone applications.」

「Sales volume for the six-month consolidated period also increased sharply, rising 17.4% year on year.」

「Sales continued to grow sharply in the first-quarter consolidated period, with shipments up 21.8% and revenue up 17.6% year on year. Monthly sales volume was approaching 8 million m, more than double the average sales volume in the fiscal year ended March 2016.」

「In addition to the expanding mix of 4K televisions, which consume 2.7 times as much of our spacer tape, spacer tape for smartphones, whose full-scale adoption has begun, will add to demand, so we will urgently establish a third-stage production expansion framework. In response to demand in the semiconductor materials business far exceeding our expectations, we will reconsider priorities for expanding the Group's businesses, with the fulfillment of our supply responsibilities as the world's No. 1 spacer tape manufacturer as the foremost priority, as part of the aforementioned optimization of our business portfolio.」

「As the world's No. 1 spacer tape manufacturer, we will urgently proceed with another capacity expansion, including preparations for 4K televisions, which consume 2.6 times as much of our spacer tape, as well as smartphones, IC cards and medical devices, for which partial adoption has begun.」

「Cumulative shipments for the six-month consolidated period increased a further 21.9%, and orders exceeding 7 million m per month, well above the combined Japan-South Korea monthly production capacity of 6.5 million m (previous-period average: 5.7 million m), have continued for 5 consecutive months. As the world's No. 1 spacer tape manufacturer, we will urgently proceed with another capacity expansion.」

「Against this backdrop, as the world's No. 1 spacer tape manufacturer, we will undertake a further expansion of production capacity at our existing facilities in both Japan and South Korea without additional investment, establishing a robust production system capable of meeting the expanding television market.」

「With medium- to long-term orders expected to substantially exceed our forecasts, we will once again comprehensively review the Group's management resources of people, assets and capital across all business divisions and build a robust organization capable of meeting strong demand as the world's No. 1 spacer tape manufacturer.」

「As global demand for LCD televisions grows at approximately 3% annually, the proportion of 4K televisions, which consume more than twice as much of our spacer tape as conventional televisions, has exceeded 30%, resulting in shipments increasing 26.7% year on year and revenue increasing 36.7%. In addition to expectations for a further increase in the 4K television mix, mass production of OLED televisions, which consume more than four times as much spacer tape as conventional televisions, is expected to ramp up in earnest, and substantial growth is anticipated over the next several years.」

「Revenue for the six-month consolidated period increased sharply, with volume up 23% and revenue up 31%, driven by the expanding penetration of 4K televisions, market-share gains from high-quality 4K-compatible spacer tape and entry into the smartphone market.」

「Sales volume for the first-quarter consolidated period increased sharply by 20%, driven by the expanding penetration of 4K televisions and market-share gains from high-quality 4K-compatible spacer tape.」

「Sales volume increased sharply by 21.6% from the previous fiscal year from the third-quarter consolidated period onward, driven by the expanding penetration of 4K televisions and market-share gains from high-quality 4K-compatible spacer tape. Further substantial growth is also expected from the next consolidated fiscal year onward,」

「By capitalizing on the quality and performance advantages of the new product, the high-quality 4K-compatible Spacer II, and establishing a flexible production system across two sites in South Korea and Japan, we aim to further increase our market share.」