Risks from Technological Change, Competition, and Demand Fluctuations in the Electronics Sector
First written in FY2016. 11 of 33 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-07-31.
Ishihara Chemical moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2019: 9 of 11 companies on the "Worse" side.
1 other company's latest entry also says "Restated".
- 2026-07-31RestatedEarnings
「Although some cutting-edge semiconductor packaging applications, including those for generative AI, performed well, production adjustments continued for electronic components for automotive applications, PCs and smartphones.」
The company reconfirmed the demand environment in which demand for cutting-edge semiconductors remained strong while production adjustments continued in automotive, PC and smartphone applications. - FY2026MitigatedAnnual report
「For metal surface treatment agents, some cutting-edge semiconductor packaging applications, including those for generative AI, performed well, while electronic components for automotive applications, PCs and smartphones showed signs of bottoming out, although the recovery remained gradual.」
Recovery in automotive, PC and smartphone applications is gradual, but strong performance in cutting-edge semiconductor packaging applications, including those for generative AI, is providing support and partly mitigating the impact of demand volatility. - 2026-05-15MitigatedEarnings
「Although some products for cutting-edge semiconductor packages, including those for generative AI applications, performed well, electronic components for automotive, PC and smartphone applications showed signs of bottoming out, but recovery remained gradual.」
Demand for cutting-edge semiconductor packages remained strong, while signs of bottoming out emerged in automotive, PC and smartphone applications, partially easing the way demand volatility risk had manifested in previous disclosures. - FY2026-H1WorsenedAnnual report
「Although some cutting-edge semiconductor packaging applications, including those for generative AI, performed well, production adjustments continued for electronic components for automotive applications, PCs and smartphones.」
While demand for some cutting-edge semiconductors, including those for generative AI applications, remained strong, production adjustments continued for automotive applications, PCs and smartphones, with demand volatility in the electronics-related sector continuing to affect results. - FY2025MitigatedAnnual report
「Demand for electronic components for PCs and smartphones recovered only gradually, but demand for AI servers and data centers remained firm due to a substantial increase in demand for generative AI applications and other areas.」
While the recovery in demand for PCs and smartphones was limited, demand for generative AI applications, AI servers and data centers supported the electronics-related sector, partly mitigating the impact of demand volatility. - FY2025-H1MitigatedAnnual report
「For metal surface treatment agents, demand for electronic components for PCs and smartphones recovered only gradually, but demand for AI servers and data centers remained firm, driven by increased demand for generative AI applications and other areas.」
The recovery in demand for PCs and smartphones was limited, while demand for generative AI applications, AI servers and data centers provided support, partly mitigating the impact of demand volatility in the electronics-related sector. - FY2024-Q3MaterialisedAnnual report
「Demand for personal computers, smartphones, tablets and other electronic devices declined due to the prolonged situation in Ukraine and global inflation, resulting in negative growth for electronic devices. Against this backdrop, the electronic components industry faced severe market conditions characterized by production cuts and production adjustments.」
The decline in demand for electronic devices amid the prolonged situation in Ukraine and global inflation has materialized in the business environment as negative growth in electronic devices and production cuts and production adjustments in the electronic components industry. - FY2024-Q1WorsenedAnnual report
「Regarding automatic chemical solution management systems and other equipment, the company was affected by production adjustments resulting from declining semiconductor demand, particularly in smartphone- and personal computer-related markets. As a result, net sales in this segment were ¥2,208 million, down 20.0% year on year, and operating income was ¥130 million, down 65.0% year on year.」
Continued declines in semiconductor demand, particularly in smartphone- and personal computer-related markets, and production adjustments appeared as decreases in net sales and operating income in the Metal Surface Treatment Agents and Equipment segment. - FY2023-Q3MaterialisedAnnual report
「The electronic components industry performed relatively steadily through the first half, supported by increased demand for 5G-related servers and data centers as 5G entered its diffusion phase. However, from the third quarter onward, the situation in Ukraine, lockdowns in China and global inflation became negative factors for personal consumption, affecting end products such as personal computers, smartphones and LCD televisions. The electronic components industry is now experiencing a severe market environment characterized by production cuts and production adjustments.」
While demand for 5G-related servers and data centers expanded, the impact on end products such as personal computers, smartphones and LCD televisions emerged from the third quarter onward, and production cuts and production adjustments actually occurred in the electronic components industry. - FY2023-Q2MaterialisedAnnual report
「Sales of equipment and other products fell below the previous year because capital investment by customers was delayed, postponed or cancelled, due to weak performance in smartphone- and personal computer-related markets and delays in parts procurement by equipment manufacturers, among other factors, including automatic chemical solution management systems.」
Weakness in smartphone- and personal computer-related markets, delays in parts procurement, and delays, postponements and cancellations of customer capital investment appeared as actual declines in sales. The report also states that demand for package substrates for 5G-related communications infrastructure expanded. - FY2023-Q1RestatedAnnual report
「The electronic components industry saw increased demand for 5G-related servers and other products as 5G entered its diffusion phase, and metal surface treatment agents performed well.」
The company again reports that increased demand for 5G-related servers and other products supported metal surface treatment agents. No new changes are reported regarding the demand fluctuation risk itself in the electronics sector. - FY2022-Q3RestatedAnnual report
「The electronic components industry benefited from the spread of telework due to the COVID-19 pandemic and increased stay-at-home demand. Metal surface treatment agents performed well, supported by increased demand for personal computers and game consoles and increased demand for servers accompanying the spread of 5G.」
While risks related to fluctuations in the automotive and smartphone-related sectors remained, increased demand for personal computers, game consoles and 5G-related servers provided support, and the company again reported strong performance by metal surface treatment agents. - FY2022-Q2MitigatedAnnual report
「The electronic components industry benefited from the spread of telework due to the COVID-19 pandemic and increased stay-at-home demand. Metal surface treatment agents performed well, supported by increased demand for personal computers and game consoles and increased demand for servers accompanying the spread of 5G.」
While risks from the pandemic and fluctuations in electronic components demand remained, telework, stay-at-home demand and increased demand for personal computers, game consoles and 5G-related servers provided support, and metal surface treatment agents performed well. - FY2022-Q1MitigatedAnnual report
「The electronic components industry benefited from increased demand for personal computers due to the spread of telework amid the COVID-19 pandemic and increased demand for 5G-related servers and other products as 5G entered its diffusion phase. As a result, metal surface treatment agents performed well.」
While risks from the pandemic and fluctuations in electronic components demand remained, expanding demand for personal computers due to telework and for 5G-related servers provided support, and metal surface treatment agents performed well. - FY2021-Q3RestatedAnnual report
「The electronic components industry was affected by the COVID-19 pandemic and experienced production cuts in the automotive and smartphone-related sectors. However, metal surface treatment agents performed relatively steadily, supported by increased demand for personal computers and servers resulting from telework and the addition of decorative plating.」
While production cuts in the automotive and smartphone-related sectors due to the COVID-19 pandemic continued, the report states that demand for personal computers and servers provided support. This is a continuing description of conditions related to demand fluctuation risks in the electronics sector. - FY2021-Q2RestatedAnnual report
「The electronic components industry was affected by the COVID-19 pandemic and experienced production cuts in the automotive and smartphone-related sectors. However, metal surface treatment agents performed relatively steadily, supported by increased demand for personal computers and servers resulting from telework and the addition of decorative plating.」
While production cuts in the automotive and smartphone-related sectors due to the COVID-19 pandemic continued, the report states that demand for personal computers and servers provided support. This is a continuing description of conditions related to demand fluctuation risks in the electronics sector. - FY2021-Q1MaterialisedAnnual report
「The electronic components industry was affected by the COVID-19 pandemic and experienced production cuts in the automotive and smartphone-related sectors. However, metal surface treatment agents performed relatively steadily, supported by increased demand for personal computers and servers resulting from remote work.」
Production cuts in the automotive and smartphone-related sectors actually occurred due to the COVID-19 pandemic, with demand fluctuation risks in the electronics sector appearing in the business environment during the quarter. The report also states that demand for personal computers and servers provided support. - FY2020WorsenedAnnual report
「The electronic components industry served by this segment continued to experience production cuts from the fourth quarter of the previous fiscal year due to production cuts in the automotive and smartphone-related sectors and delays in the spread of mobile communication systems (5G).」
Production cuts in the automotive and smartphone-related sectors continued, with delays in the spread of 5G also explicitly identified as a factor. Demand and technological change risks in the electronics sector continued to be reflected in annual results. - FY2020-Q3MaterialisedAnnual report
「Demand for plating solutions for large-screen televisions compatible with 4K, 8K and organic EL remained firm, but inventory adjustments became apparent from the third quarter onward, resulting in a trend toward production cuts. The smartphone and automotive semiconductor component markets and the general electronic components market also continued to experience production cuts from the fourth quarter of the previous fiscal year.」
For plating solutions for large-screen televisions, inventory adjustments and a trend toward production cuts emerged from the third quarter onward, while production cuts in smartphones, automotive semiconductor components and the general electronic components market continued. Risks related to demand and technological change in the electronics sector have materialized in the business environment. - FY2020-Q2RestatedAnnual report
「Demand for plating solutions for large-screen televisions compatible with 4K, 8K and organic EL remained firm, but the smartphone and automotive semiconductor component markets and the general electronic components market continued to experience production cuts from the fourth quarter of the previous fiscal year.」
While demand for plating solutions for large-screen televisions remained firm, production cuts in smartphones, automotive semiconductor components and the general electronic components market continued. Demand fluctuation risks in the electronics sector continued to be reflected in results. - FY2020-Q1MaterialisedAnnual report
「Demand for plating solutions for large-screen televisions compatible with 8K and organic EL remained firm, but the smartphone and automotive semiconductor component markets and the general electronic components market continued to experience production cuts from the fourth quarter of the previous fiscal year.」
Production cuts in smartphones, automotive semiconductor components and the general electronic components market continued from the fourth quarter of the previous fiscal year, with demand and production fluctuations in the electronics sector reflected in quarterly results. - FY2019MaterialisedAnnual report
「Since the second half of the period, the company has been experiencing rapid production cuts and inventory adjustments, affected by the downturn in high-end smartphones in the smartphone-related market and production cuts in the semiconductor memory sector.」
The downturn in high-end smartphones and production cuts in the semiconductor memory sector have materialized in the business environment as rapid production cuts and inventory adjustments. - FY2019-Q3RestatedAnnual report
「Functional material processed products were affected by stagnant capital investment related to organic EL manufacturing equipment due to weak sales of high-performance smartphones, resulting in weak sales of VESPEL processed components.」
The company reports continued weak sales of high-performance smartphones, stagnant capital investment related to organic EL manufacturing equipment and weak sales of processed components. - FY2019-Q2RestatedAnnual report
「Functional material processed products were affected by stagnant capital investment related to organic EL manufacturing equipment from the second half of the previous period onward, resulting in weak sales of VESPEL processed components.」
While stagnant capital investment related to organic EL manufacturing equipment and weak sales of processed components continued, the report also describes a recovery in demand related to smartphones for China and chips and memory. Demand fluctuations in the electronics sector therefore continue to be reflected in performance. - FY2019-Q1MaterialisedAnnual report
「Functional material processed products performed weakly, as capital investment plans related to organic EL manufacturing equipment were delayed due to weak sales of high-end smartphones.」
The company reports that weak sales of high-end smartphones actually led to delays in capital investment plans related to organic EL manufacturing equipment and weak performance by functional material processed products. - FY2018MaterialisedAnnual report
「In overseas markets, fan-out technology and copper pillar formation have become more widespread, but since the fourth quarter the smartphone-related market has been undergoing temporary inventory adjustments following production cuts for high-end smartphones.」
Production cuts for high-end smartphones and inventory adjustments are described as actual business conditions, and wafer bump plating solutions also fell below the previous period due to production cuts and price concessions by major overseas customers. Existing risks related to technological change and demand fluctuations have materialized in annual results. - FY2018-Q3RestatedAnnual report
「Under these conditions, our Group's plating solutions for general electronic components and electroless plating solutions for LCD drivers performed well, and there were also adoptions of copper plating solutions for wafers compatible with fan-out technology and copper pillar formation. Although bump plating solutions fell below the level of the previous year because usage declined as a result of fan-out conversion and copper pillar formation, the segment as a whole performed well.」
The company reports that, while demand and product adoption in the electronics sector remained strong, usage of bump plating solutions continued to decline as a result of fan-out conversion and copper pillar formation. This is a restatement of the existing situation concerning technological change and demand fluctuation risks. - FY2018-Q1MaterialisedAnnual report
「Functional material processed products performed well, with processed components for organic EL manufacturing equipment doing particularly well. However, ultrafine nickel powder for ceramic capacitors lost its market position following a change in customers' purchasing policies.」
The company reports that the loss of the market for ultrafine nickel powder actually occurred in the electronic materials field following a change in customers' purchasing policies. - FY2017RestatedAnnual report
「In overseas markets, sales of high-end products were weak, affected by competition from mid-range and low-end smartphones for emerging markets.」
The company again describes the impact of competition from mid-range and low-end smartphones for emerging markets and weak sales of high-end products on wafer bump plating solutions for advanced electronic components and other products. - FY2017-Q3RestatedAnnual report
「Metal surface treatment agents performed weakly, as wafer bump plating solutions for advanced electronic components were affected by lower production of electronic components for high-end smartphones.」
Lower production of electronic components for high-end smartphones continues to appear in results as weak performance by plating solutions for advanced electronic components. No further deterioration from the demand and production-adjustment risks reported through the previous quarter is specified. - FY2017-Q2WorsenedAnnual report
「In the electronic components industry, our Group's main market, the decline in demand for personal computers, together with competition from mid-range to low-end smartphones for emerging markets, has made the slowdown in growth of high-end products increasingly pronounced. Under these conditions, our Group continued to develop overseas markets and actively market high-value-added chemicals, but was affected by production adjustments in smartphones.」
In addition to the previously reported weak demand, the company explicitly identifies declining demand for personal computers, competition from smartphones for emerging markets and slowing growth in high-end products. The impact of smartphone production adjustments is also reported as an actual business condition. - FY2017-Q1MaterialisedAnnual report
「In overseas markets, customers have continued to reduce their use of wafer bump plating solutions for advanced electronic components, which are metal surface treatment agents, for cost-cutting purposes and have continued to demand substantial price discounts. Demand for plating solutions for general electronic components also remained weak.」
Events related to the existing risks of weak demand in the electronics sector, reduced customer usage and substantial price discounts are specifically reported as business conditions during the quarter. - FY2016First statedAnnual report
「Our core businesses, including metal surface treatment agents and equipment, as well as electronic materials, all serve the electronics sector and are affected by the development of new technologies, adoption of new methods, emergence of new products, the rise of competitors and supply-demand cycles in this field. If our products become obsolete rapidly, lose marketability, or customers make substantial production adjustments, this could have a material impact on our business.」
First reported. The company identifies technological innovation, competition, supply-demand cycles and production adjustments in the electronics sector as major risks that could make products obsolete and reduce their marketability.