Dependence on Fluctuations in Capital Investment in the Semiconductor and LCD-Related Industries

「In the semiconductor industry, which affects the performance of our Group, market conditions remained firm overall, supported by growing AI-related demand, increased data center investment, and active investment in advanced semiconductors. Semiconductor Equipment and Materials International (SEMI) announced that global semiconductor manufacturing equipment sales in 2025 reached $135.1 billion, up 15% year on year, driven by continued capital investment to expand production capacity for advanced logic, memory and AI-related applications.」

「SEMIは、2025年の半導体製造装置の世界販売額が、先進ロジック、メモリー、AI関連の生産能力拡張に向けた継続的な設備投資に牽引されたことで前年比15％増の1,351億ドルに達したと発表しました。」

「In the semiconductor industry, which affects the performance of our Group, investment in memory and logic products expanded against a backdrop of increased demand for generative AI and cloud infrastructure, and capital investment remained firm. Semiconductor Equipment and Materials International (SEMI) announced that global semiconductor manufacturing equipment sales reached $33.0 billion in the second quarter of 2025, up 24.0% year on year.」

「Semiconductor Equipment and Materials International (SEMI) announced that global semiconductor manufacturing equipment sales in 2024 reached a record $117 billion, up 10.0% year on year, driven by increased investment to expand production capacity for leading-edge and mature-node logic, advanced packaging and high-bandwidth memory.」

「Semiconductor Equipment and Materials International (SEMI) reported that global semiconductor manufacturing equipment sales increased 4% year on year to $26.8 billion in the second quarter of 2024 and reached $53.2 billion cumulatively in the first half, marking a return to growth for the semiconductor manufacturing equipment market.」

「According to Semiconductor Equipment and Materials International (SEMI), global semiconductor manufacturing equipment sales in 2023 declined 1.3% from the record set in 2022 to $106.3 billion. However, sales of electronic equipment and ICs began to recover in the fourth quarter of 2023, and further growth is expected in 2024, suggesting that the recovery in the semiconductor manufacturing industry is becoming established.」

「According to a market forecast released by Semiconductor Equipment and Materials International (SEMI), global semiconductor manufacturing equipment sales are expected to reach $100 billion in 2023, down 6.1% from the record set in 2022. The market is forecast to recover in 2024 and reach $124 billion in 2025.」

「Although demand for PCs, smartphones and consumer electronics continued to decline, demand for data centers, generative AI and automotive applications remained firm. According to global semiconductor manufacturing equipment market statistics released by Semiconductor Equipment and Materials International (SEMI) for the second quarter of 2023, sales declined 2% year on year to $25,810 million. However, demand for semiconductor manufacturing equipment remained firm overall, and the association's mid-year market forecast projected a rebound in 2024.」

「Although demand for PCs, smartphones and consumer electronics continued to decline, demand for data centers, AI and automotive applications remained firm. According to global semiconductor manufacturing equipment market statistics released by Semiconductor Equipment and Materials International (SEMI) for the first quarter of 2023, sales increased 9% year on year to $26,810 million, supported by long-term strategic investment to advance technologies for growing applications such as AI and automotive.」

「Semiconductor manufacturing equipment sales increased year on year in Taiwan, North America, Japan and elsewhere, with global sales up 5% to a record $107,640 million. In the FPD (flat panel display)-related market, investment plans by FPD manufacturers were delayed due to prolonged declines in panel prices for PCs, tablets and TVs and the impact of lockdowns in multiple Chinese cities.」

「The semiconductor industry, which affects the performance of our Group, remained firm, particularly on demand for electric vehicles and industrial equipment, despite signs of stagnation in some markets such as semiconductor memory. According to global semiconductor manufacturing equipment market statistics released by Semiconductor Equipment and Materials International (SEMI) for the third quarter of 2022, sales increased year on year in China, North America, Japan and elsewhere, with global sales up 7% to $28,750 million. In the FPD (flat panel display)-related market, investment plans by FPD manufacturers were delayed due to prolonged declines in panel prices for PCs, tablets and TVs and the impact of lockdowns in multiple Chinese cities.」

「The semiconductor industry, which affects the performance of our Group, remained firm, supported by demand for 5G, data centers, automobiles and industrial equipment amid accelerating digital transformation investment and increased online communication following the spread of COVID-19. According to global semiconductor manufacturing equipment market statistics released by Semiconductor Equipment and Materials International (SEMI) for the second quarter of 2022, sales increased year on year in Taiwan, North America and elsewhere, with global sales up 6% to $26,430 million. In the FPD (flat panel display)-related market, investment plans by FPD manufacturers were delayed due to slowing demand for televisions and PC monitors, falling panel prices and the impact of the lockdown in Shanghai, China.」

「Semiconductor manufacturing equipment sales increased year on year in China, North America, Japan and elsewhere, with global sales up 5% to $24,690 million. In the FPD (flat panel display)-related market, investment plans by FPD manufacturers were delayed due to slowing demand for televisions and PC monitors and the impact of the lockdown in Shanghai, China.」

「The semiconductor industry, which affects the performance of our Group, remained firm, supported by 5G, demand for high-performance PCs and data centers, and other factors associated with accelerating digital transformation investment and increased online communication following the spread of COVID-19. According to 2021 global semiconductor manufacturing equipment market statistics released by Semiconductor Equipment and Materials International (SEMI), sales increased year on year in Taiwan, South Korea, China, North America, Japan and elsewhere, with global sales up 44% to $102,640 million. In the FPD (flat panel display) market, investment in OLED panels accelerated as LCD panel prices, which had continued to rise, began falling after the summer.」

「The semiconductor industry, which affects the performance of our Group, remained firm, supported by 5G, demand for high-performance PCs and data centers, and other factors associated with accelerating digital transformation investment and increased online communication following the spread of COVID-19. According to global semiconductor manufacturing equipment market statistics released by Semiconductor Equipment and Materials International (SEMI) for the third quarter of 2021, sales increased year on year in Taiwan, South Korea, China, North America and elsewhere, with global sales up 38% to $26,790 million. In the FPD (flat panel display) industry, investment in OLED panels accelerated as LCD panel prices, which had continued to rise, began falling after the summer.」

「The semiconductor industry, which affects the performance of our Group, remained firm, supported by 5G, increased demand for high-performance PCs, data centers and automotive applications, and accelerating digital transformation investment amid prolonged COVID-19-related work-from-home arrangements and stay-at-home consumption. According to global semiconductor manufacturing equipment market statistics released by Semiconductor Equipment and Materials International (SEMI) for the second quarter of 2021, sales increased year on year, led by Asian regions including China, South Korea, Taiwan and Japan. Global sales increased 48% year on year to $24,870 million.」

「The semiconductor industry, which affects the performance of our Group, remained firm, supported by 5G, demand for high-performance PCs and data centers, and accelerating digital transformation investment amid prolonged COVID-19-related work-from-home arrangements and stay-at-home consumption.」

「The semiconductor industry, which affects the performance of our Group, remained firm, supported by 5G, telework, demand for high-performance PCs and data centers, and accelerating digital transformation. According to semiconductor manufacturing equipment sales announced by Semiconductor Equipment and Materials International (SEMI) for the third quarter of 2020, sales increased year on year, led by Asian regions including China, Taiwan, South Korea and Japan. Global sales increased 30% year on year to $19,380 million. In the FPD (flat panel display) market, demand for LCD panels increased against the backdrop of telework and more time spent at home.」

「The semiconductor industry, which affects the performance of our Group, remained firm. Although sales related to automobiles, smartphones and industrial equipment declined, demand related to data centers increased amid changes in lifestyles, including 5G, telework and spending more time at home. According to semiconductor manufacturing equipment sales announced by Semiconductor Equipment and Materials International (SEMI) for the second quarter of 2020, sales increased year on year, led by Asia including South Korea, China and Japan. Global sales increased 26% year on year to $16,800 million.」

「The semiconductor industry, which affects the performance of our Group, remained firm despite declines in sales related to automobiles and smartphones, supported by strong equipment demand for 5G, the next-generation communications standard, and data centers. According to semiconductor manufacturing equipment sales announced by Semiconductor Equipment and Materials International (SEMI) for the first quarter of 2020, sales increased year on year, particularly in Asia including China, South Korea, Taiwan and Japan, reversing the investment restraint seen through the previous year. Global sales increased 13% to $15,570 million. In the FPD (flat panel display) market, investment shifted from LCD panels toward OLED panels, particularly in China.」

「In 2019, semiconductor manufacturing equipment sales in Taiwan increased 68% year on year to $17,120 million due to aggressive capital investment by Taiwanese foundries. China increased 3% to $13,450 million, while South Korea declined 44% to $9,970 million and Japan declined 34% to $6,270 million. Globally, semiconductor manufacturers reduced capital investment amid a downturn in the memory market, bringing total sales down 7% to $59,750 million.」

「The semiconductor industry, which affects the performance of our Group, recorded semiconductor manufacturing equipment sales of $14,860 million globally in the third quarter of 2019, according to Semiconductor Equipment and Materials International (SEMI). Taiwan increased 34% year on year due to aggressive capital investment by Taiwanese foundries, while South Korea declined 36%, China 14% and Japan 30%, with the global total down 6%. In the FPD (flat panel display) market, investment in LCD panels was restrained as prices continued to fall due to oversupply, while the shift toward investment in OLED panels accelerated further.」

「The semiconductor industry, which affects the performance of our Group, recorded semiconductor manufacturing equipment sales of $13,310 million globally in the second quarter of 2019, according to Semiconductor Equipment and Materials International (SEMI). Taiwan increased 47% year on year, while South Korea declined 47%, China 11% and Japan 39%, due to plateauing smartphone demand and the completion of investment in memory products such as DRAM, indicating a cautious approach to investment. In the FPD (flat panel display) market, large-scale investment supported by government subsidies and financial institution assistance continued in China. Investment in LCD panels was restrained by continued oversupply and falling prices, while investment shifted toward OLED panels.」

「The semiconductor industry, which affects the performance of our Group, recorded semiconductor manufacturing equipment sales of $13,790 million globally in the first quarter of 2019, according to Semiconductor Equipment and Materials International (SEMI). Taiwan increased 68% year on year, while South Korea declined 54%, China 11% and Japan 27%, due to plateauing smartphone demand and the completion of investment in memory products such as DRAM. Among FPD (flat panel display)-related companies, investment plans were postponed due to deteriorating market conditions caused by excess inventories of mobile OLED and large LCD panels, although large-scale, government-led investment continued in China.」

「In recent years, competition in the semiconductor and LCD-related industries has intensified as semiconductor and LCD panel prices have fallen. If the business profitability of our major customer companies deteriorates and demand for investment in new equipment declines, this may affect the performance of our Group.」

「In the LCD market, investment in OLED panels declined due to postponements and other factors, while investment in large panels in China continued. However, the sense of oversupply has intensified as mass production has gained momentum.」

「Our Group is in a position where demand inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries. In recent years, deteriorating business profitability caused by falling semiconductor and LCD panel prices, together with intensifying investment competition, has increasingly highlighted the differences in competitiveness among semiconductor and LCD manufacturers as they select and concentrate their businesses, and the performance of our Group may be affected by the competitiveness of our major customers.」

「Our Group is in a position where demand inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries. In recent years, deteriorating business profitability caused by falling semiconductor and LCD panel prices, together with intensifying investment competition, has increasingly highlighted the differences in competitiveness among semiconductor and LCD manufacturers as they select and concentrate their businesses, and the performance of our Group may be affected by the competitiveness of our major customers.」

「Demand for ultrapure water systems, which are the core of our water treatment equipment business, inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries, and these trends may affect the performance of our Group.」

「Our Group is in a position where demand inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries. In recent years, deteriorating business profitability caused by falling semiconductor and LCD panel prices, together with intensifying investment competition, has increasingly highlighted the differences in competitiveness among semiconductor and LCD manufacturers as they select and concentrate their businesses, and the performance of our Group may be affected by the competitiveness of our major customers.」

「Our Group is in a position where demand inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries. In recent years, falling semiconductor and LCD panel prices have intensified competition in these industries and highlighted differences in competitiveness among manufacturers as they select and concentrate their businesses. We recognize that it is essential to secure stable, long-term earnings by strengthening competitiveness in Asia, particularly South Korea, China and Taiwan, where sustainable growth is expected, strengthening general water treatment services other than ultrapure water, expanding the Group's business areas, and developing peripheral businesses.」

「Our Group is in a position where demand inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries. In recent years, deteriorating business profitability caused by falling semiconductor and LCD panel prices, together with intensifying investment competition, has increasingly highlighted the differences in competitiveness among semiconductor and LCD manufacturers as they select and concentrate their businesses, and the performance of our Group may be affected by the competitiveness of our major customers.」

「The Group's principal business is its water treatment equipment business, which designs, constructs and sells water treatment equipment and provides related maintenance services, including the sale of consumables used in the equipment. This business accounted for 95.3% of sales in the fiscal year ended March 2017.」

「Our Group is in a position where demand inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries. In recent years, deteriorating business profitability caused by falling semiconductor and LCD panel prices, together with intensifying investment competition, has increasingly highlighted the differences in competitiveness among semiconductor and LCD manufacturers as they select and concentrate their businesses, and the performance of our Group may be affected by the competitiveness of our major customers.」

「In recent years, deteriorating business profitability caused by falling semiconductor and LCD panel prices, together with intensifying investment competition, has increasingly highlighted the differences in competitiveness among semiconductor and LCD manufacturers as they select and concentrate their businesses, and the performance of our Group may be affected by the competitiveness of our major customers.」

「Although China, where semiconductor investment is strong, recorded a 39% increase, results declined sharply in South Korea, North America and Europe, bringing the total for all regions to $8.28 billion, down 13% year on year. In the LCD market, investment in large panels and OLED panels in China is continuing, while concerns remain over falling panel prices and deteriorating supply and demand.」

「Demand for ultrapure water systems, which are the core of our water treatment equipment business, inevitably fluctuates in response to capital investment trends in the semiconductor and LCD-related industries, our major customer industries, and these trends may affect the performance of our Group.」