Weak Demand for Data Centers, Memory and Smartphones
First written in FY2020-Q1. 5 of 24 entries say "Mitigated", first in FY2022-Q2. Latest entry: 2026-08-06.
Furukawa Electric moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2023: 43 of 66 companies on the "Worse" side.
33 other companies' latest entry also says "Mitigated".
- 2026-08-06MitigatedRevision of earnings forecasts
「Mainly in the Optical Solutions and Information Components businesses, net sales and operating income are expected to exceed the previous forecast due to higher sales resulting from increased demand for data center-related products.」
For data center-related products, increased rather than weak demand was the basis for the upward revision to the earnings forecast. There is no mention of demand for smartphones or personal computers. - FY2026Strong AI and data center demand alongside weak demand in some areasAnnual report
「Against a backdrop of growing demand for data center-related products, we advanced the development and expansion of sales of high-value-added products, including rollable ribbon cables that contribute to the construction of high-speed, high-capacity communications networks, MT ferrules, essential connector components for optical communications, and DFB laser diode chips suited to higher communications speeds.」
The focus shifted from weak demand for smartphones, PCs and other products in the past to capturing growing demand for AI- and data center-related products. At the same time, the company stated that recovery in smartphone and PC demand remains slow. - FY2026-H1RestatedAnnual report
「In the Functional Products field, recovery in demand for smartphones and PCs remains slow, but AI-related demand is increasing rapidly, and the market is expected to continue expanding and growing over the medium to long term.」
While recovery in smartphone and PC demand remains slow, AI-related demand is increasing rapidly, and we reconfirmed our view that the market is expected to expand over the medium to long term. - FY2025Recovery in AI, data center and HDD demandAnnual report
「In the Functional Products business, we implemented various measures to capture demand accompanying growth in the data center and AI-related markets. In particular, for heat-dissipation and cooling products, we established a supply system for air-cooled heatsinks, for which demand is strong. For aluminum blanks for hard disk drives, earnings expanded as we captured recovering demand following the resolution of customer inventory adjustments, resulting in higher sales and profit.」
While the recovery in smartphone and PC demand remained gradual, the Functional Products segment captured recovering demand related to AI and data centers and for aluminum blanks for HDDs, resulting in higher sales and profit. - FY2025-H1AI and data center demand recovery alongside weak smartphone and PC demandAnnual report
「In the Functional Products field, recovery in demand for smartphones and PCs remains slow, but AI-related demand is increasing rapidly, and the market is expected to continue expanding and growing over the medium to long term.」
While recovery in smartphone and PC demand remains slow, rapidly growing AI-related demand and higher sales of data center-related products are supporting recovery in the Functional Products field. - FY2024Weak demand alongside generative AI-related demandAnnual report
「In the Functional Products business, sales declined across a broad range of products because of weak global demand for smartphone, PC and hard disk drive-related products since the second half of fiscal 2022 and the resulting prolonged supply-chain inventory adjustments. However, strong performance by high-value-added products in response to rapidly expanding generative AI-related demand resulted in lower sales but higher profit.」
While weak demand and inventory adjustments continued for smartphones, PCs and HDD-related products, demand for high-value-added products related to generative AI expanded. - FY2024-Q3Continued weak demand and inventory adjustments alongside strong AI and renewable energy-related demandAnnual report
「Despite the positive contribution from strong demand for AI- and renewable energy-related products, lower demand for smartphone, PC and hard disk drive-related products and supply-chain inventory adjustments resulted in segment net sales of ¥85.5 billion, down 15.5% year on year, and operating income of ¥3.9 billion, down 24.4%.」
While demand for AI- and renewable energy-related products remained strong, lower demand for smartphones, PCs and hard disk drive-related products and continued supply-chain inventory adjustments resulted in lower sales and profit in the Functional Products segment. - FY2024-Q2RestatedAnnual report
「Although demand related to AI and renewable energy remained strong, lower demand for products for smartphones, PCs and data centers, together with supply-chain inventory adjustments, resulted in segment net sales of ¥55.7 billion, down 20.7% year on year, and operating income of ¥2.1 billion, down 57.3%.」
While demand related to AI and renewable energy remained strong, lower demand for smartphones, PCs and data centers and continued inventory adjustments resulted in lower sales and profit in the Functional Products segment. - FY2024-Q1WorsenedAnnual report
「Although AI-related demand remained strong, lower demand for products for smartphones, PCs and data centers, together with supply-chain inventory adjustments, including lower sales of aluminum blanks for HDDs after strong demand in the previous fiscal year, resulted in segment net sales of ¥27.5 billion, down 20.8% year on year, and operating income of ¥700 million, down 67.6%.」
While AI-related demand remained strong, declining demand for smartphones, PCs and data centers and inventory adjustments progressed, resulting in a 20.8% decline in Functional Products segment net sales and a 67.6% decline in operating income. - FY2023-Q3WorsenedAnnual report
「Although price pass-through for higher raw material and fuel costs and the impact of yen depreciation were factors, demand for smartphones, PCs and data centers in China and elsewhere declined from the latter half of the second quarter. In addition, rapid inventory adjustments across the supply chain and their prolongation, together with higher raw material and fuel prices and logistics costs, resulted in segment net sales of ¥101.2 billion, up 3.3% year on year, and operating income of ¥5.2 billion, down 12.6%.」
In addition to lower demand for smartphones, PCs and data centers in China and elsewhere, the newly identified rapid and prolonged inventory adjustments across the supply chain resulted in higher sales but lower operating income in the Functional Products segment. - FY2023-Q2MitigatedAnnual report
「Despite higher raw material and fuel prices and logistics costs, price pass-through, solid performance by data center-related products and foreign exchange effects resulted in segment net sales of ¥70.2 billion, up 9.9% year on year, and operating income of ¥4.9 billion, up 22.8%.」
Solid performance by data center-related products and price pass-through supported continued recovery in the Functional Products segment from the previous period of weak demand. - FY2023-Q1MitigatedAnnual report
「Despite higher raw material and fuel prices and logistics costs, price pass-through and solid performance by data center-related products resulted in segment net sales of ¥34.7 billion, up 15.9% year on year, and operating income of ¥2.2 billion, up 9.0%.」
Data center-related products performed solidly, resulting in higher sales and profit in the Functional Products segment. Recovery from the previous period of weak demand continued. - FY2022Recovery in demand alongside semiconductor shortagesAnnual report
「Although sales of data center-related products remained solid in the first half, demand declined in the second half because customers faced semiconductor shortages.」
While demand related to data centers remained solid in the first half, demand for Functional Products declined in the second half because of semiconductor shortages at customers. - FY2022-Q3MitigatedAnnual report
「Although demand recovery, mainly for automotive and electronics-related products, continued compared with the previous year,」
The company stated that demand recovery had continued from the weakness in automotive and electronics-related demand through the previous year. However, higher costs resulting from the impact of infectious diseases remained in the automotive parts business. - FY2022-Q2MitigatedAnnual report
「Orders for circuit-board copper foil increased as the Taiwan site recovered from the fire, and demand for battery copper foil recovered. We also captured robust demand, particularly for semiconductor manufacturing tape and heat-dissipation and cooling products. As a result, this segment posted revenue of ¥63.8 billion, up 21.7% year on year, and operating profit of ¥4.0 billion, up 82.9%.」
While demand for data centers, memory, smartphones and other products had been weak through the previous period, demand recovered and robust demand was captured for battery copper foil, semiconductor manufacturing tape, heat-dissipation and cooling products, and other products, improving the performance of the Functional Products segment. - FY2022-Q1Demand recovery alongside customer inventory adjustmentsAnnual report
「Orders for circuit-board copper foil increased as the Taiwan site recovered from the fire, and demand for battery copper foil recovered. We also captured robust demand, particularly for semiconductor manufacturing tape and heat-dissipation and cooling products.」
While we captured recovering and robust demand for battery copper foil, semiconductor manufacturing tape and other products, customer inventory adjustments continued in the information and communications field for digital coherent products. - FY2021Partial demand recovery alongside weak demandAnnual report
「Demand for data center-related products remained strong in the thermal and electronic components business and the memory disk business. In the AT and Functional Resins businesses, demand for functional resin products declined as the COVID-19 pandemic restrained the start of domestic construction projects.」
While demand related to data centers remained strong, demand for functional resin products declined because domestic construction was restrained, and weak demand for copper foil for automotive applications continued. - FY2021-Q3RestatedAnnual report
「Demand related to data centers recovered from the previous period, when investment had been restrained. However, delays in domestic private-sector construction caused by COVID-19 resulted in lower sales of functional resin products. Semiconductor manufacturing tape was also affected by weak demand for smartphones and customer inventory adjustments.」
We reconfirmed the recovery in demand related to data centers, together with the impact of construction delays, weak smartphone demand and customer inventory adjustments on functional resin products and semiconductor manufacturing tape. - FY2021-Q2Data center recovery while weak smartphone demand continuedAnnual report
「Demand related to data centers recovered from the previous period, when investment had been restrained. However, the impact of COVID-19 caused delays in domestic private-sector construction and a decline in automotive-related demand, resulting in lower sales of functional resin products. Semiconductor manufacturing tape was also affected by weak demand for smartphones and customer inventory adjustments.」
While demand related to data centers recovered, delays in private-sector construction, a decline in automotive-related demand, weak smartphone demand and customer inventory adjustments affected the Functional Products business. - FY2021-Q1Partial demand recovery alongside weak automotive demandAnnual report
「Demand related to data centers recovered from the previous period, when investment had been restrained. However, the impact of COVID-19 caused delays in domestic private-sector construction and a decline in automotive-related demand, resulting in lower sales of functional resin products. Demand for copper foil for automotive batteries also declined.」
While demand related to data centers recovered, delays in private-sector construction, a decline in automotive-related demand and lower demand for copper foil for automotive batteries affected the Functional Products business. - FY2020MaterialisedAnnual report
「Group-wide net sales declined mainly because of sluggish sales growth in the electrical and electronics materials business and the Functional Products business, reflecting weak market conditions in electronics-related markets.」
Weak demand for data centers, memory, smartphones and other products continued throughout the year, leading to lower sales and profit in the Functional Products segment and other businesses. - FY2020-Q3MaterialisedAnnual report
「Compared with the strong performance in the previous period, demand for data centers, memory products and smartphones remained weak. In addition, revenue declined due to the impact of a fire at the Taiwan subsidiary of the copper foil business in June 2019. As a result, this segment posted revenue of ¥87.9 billion, down 26.3% year on year, and operating profit of ¥5.4 billion, down 54.2%.」
Continued weak demand for data centers, memory, smartphones and other products, together with the impact of the fire at the Taiwanese subsidiary, resulted in a 26.3% decline in Functional Products segment net sales and a 54.2% decline in operating income. - FY2020-Q2MaterialisedAnnual report
「Compared with the strong performance in the previous period, demand for data centers, memory, smartphones and other products was weak. In addition, sales declined as a result of a fire at a Taiwanese subsidiary of the copper foil business in June this year. Segment net sales were ¥58.6 billion, down 25.1% year on year, and operating income was ¥3.6 billion, down 51.6%.」
Continued weak demand for data centers, memory, smartphones and other products, together with the impact of the fire at the Taiwanese subsidiary, resulted in a 25.1% decline in Functional Products segment net sales and a 51.6% decline in operating income. - FY2020-Q1MaterialisedAnnual report
「Compared with the strong performance in the previous period, demand for data centers, memory, smartphones and other products was weak. Segment net sales were ¥29.4 billion, down 23.5% year on year, and operating income was ¥1.9 billion, down 45.3%.」
Weak demand for data centers, memory, smartphones and other products affected the Functional Products segment, resulting in lower net sales and operating income than in the same period of the previous year.