Risk of Customers Freezing or Scaling Back Capital Investment or Changing Investment Plans
First written in FY2016. 14 of 31 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2026.
Samco 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: 14 of 26 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Orders received during the fiscal year were ¥17,133 million, up 88.2% year on year, while the order backlog at the end of the fiscal year was ¥11,457 million, up 123.6%.」
Orders received and the order backlog increased substantially despite the risk that customer capital expenditure freezes, production cuts and plan changes could affect performance. - FY2026-H1MitigatedAnnual report
「Against a backdrop of strong demand, order intake increased sharply and net sales also grew.」
In response to the risk that customers freezing capital investment, reducing production or changing plans could affect performance, the company reported that order intake increased sharply on the back of demand for AI and data centers. - FY2024-Q3RestatedAnnual report
「As demand for smartphones, personal computers and other products that had expanded during the COVID-19 pandemic slowed, component manufacturers’ operating rates declined and capital investment slowed recently.」
Declining operating rates and slowing capital investment on the customer side were reiterated as existing risks that could lead to customers freezing capital investment, reducing production or changing plans. - FY2024-Q2RestatedAnnual report
「In the semiconductor and other electronic components industry, component manufacturers' operating rates declined as demand for smartphones, personal computers and other products that had expanded during the COVID-19 pandemic slowed, and capital investment recently decelerated.」
Although declining operating rates and slowing capital investment on the customer side continued as actual market conditions, there was no substantive addition or change in the disclosure from the previous quarter. - FY2024-Q1MaterialisedAnnual report
「As demand for smartphones, personal computers and other products that had expanded during the COVID-19 pandemic slowed, component manufacturers' operating rates declined, and capital investment has recently decelerated.」
Declining operating rates and slowing capital investment on the customer side were described as actual market conditions, indicating the risk of a slowdown in customers’ capital investment. - FY2023-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The company stated that there had been no material change in the previously disclosed risks relating to customers freezing capital investment, reducing production and changing plans. - FY2023-Q2RestatedAnnual report
「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The company stated that there had been no material change in the previously disclosed risks relating to customers freezing capital investment, reducing production and changing plans. - FY2023-Q1RestatedAnnual report
「During the six months ended [current first quarter], there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The company stated that there had been no material change in the previously disclosed risks relating to customers freezing capital investment, reducing production and changing plans. - FY2022WorsenedAnnual report
「If we are unable to respond to such a sharp increase in demand, we may be unable to supply products to customers in a timely manner, resulting in lost opportunities and potentially affecting our performance.」
In addition to the existing risks of customers freezing capital investment, reducing production and changing plans, the company explicitly disclosed the risk that supply may fail to keep pace with a sharp increase in demand, preventing timely product delivery. - FY2022-Q2RestatedAnnual report
「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The company stated that there had been no material change in the previously disclosed risks relating to customers freezing capital investment, reducing production and changing plans. - FY2021-Q3MitigatedAnnual report
「Order intake, which had temporarily been sluggish in the latter half of the previous fiscal year due to the impact of the infectious disease, recovered substantially to ¥4,876 million in the nine months ended the third quarter, up 26.2% year on year. Order backlog at the end of the third-quarter accounting period was ¥2,894 million, up 69.4% year on year.」
In response to the deterioration in customers’ capital investment and order projects caused by the impact of the infection, order intake and the order backlog recovered significantly. - FY2021-Q2MitigatedAnnual report
「Order intake, which had temporarily been sluggish in the latter half of the previous fiscal year due to the impact of the novel coronavirus disease, recovered to approximately the previous year's level at ¥3,058 million in the six months ended the second quarter, down 3.9% year on year. Order backlog at the end of the second-quarter accounting period was ¥2,316 million, down 1.0% year on year.」
Order intake recovered from the decline seen in the second half of the previous fiscal year to approximately the year-earlier level, partially alleviating the impact of the slowdown in customers’ capital investment on orders. - FY2021-Q1MitigatedAnnual report
「Order intake, which had declined in the third quarter of the previous fiscal year due to the impact of the novel coronavirus disease, recovered in the fourth quarter and reached ¥1,646 million in the first quarter, up 9.5% year on year. Order backlog at the end of the first-quarter accounting period was ¥2,460 million, up 0.8% year on year.」
In response to the decline in customers’ willingness to invest in capital equipment and sluggish orders seen in the previous fiscal year, order intake and the order backlog exceeded the year-earlier period, partially alleviating the impact. - FY2020WorsenedAnnual report
「The stagnation of global economic activity caused by the spread of COVID-19 may shrink our sales market as a result of customers freezing capital investment, reducing production or changing plans.」
The previously disclosed risks of customers freezing capital investment, reducing production and changing plans were explicitly linked to the stagnation of global economic activity caused by COVID-19. - FY2020-Q3MaterialisedAnnual report
「From February, when the novel coronavirus disease began to spread, the tendency to postpone new orders intensified. In addition, restrictions on working at the office, business travel and overseas travel following the declaration of a state of emergency caused third-quarter order results to fall below the assumptions made at the start of the period.」
Customers actually postponed new equipment purchases and order projects, and orders received fell below the assumptions made at the beginning of the fiscal year. - FY2020-Q2MitigatedAnnual report
「As a result, order intake for the six months ended the second quarter was ¥3,183 million, up 22.1% year on year, and order backlog at the end of the second quarter was ¥2,339 million, up 25.9% year on year, both showing solid trends.」
In contrast to the earlier situation in which customers’ reduced willingness to invest in capital equipment and postponement of projects had affected orders, order intake and the order backlog increased, alleviating the impact. - FY2020-Q1MitigatedAnnual report
「As a result, equipment orders increased in line with higher production at electronic component manufacturers, and first-quarter order intake remained solid at ¥1,503 million, up 7.0% year on year.」
The impact that customers’ increasingly cautious capital investment and postponement of projects had on orders was alleviated by an increase in equipment orders accompanying increased production by electronic component manufacturers. - FY2019MaterialisedAnnual report
「However, order intake continued to show a sluggish trend because weak demand in the smartphone market and the slowdown in the Chinese economy resulting from the impact of US-China trade friction affected the capital investment decisions of electronic component manufacturers, our major customers.」
The impact on customers’ capital investment decisions continued and was reflected in full-year performance as sluggish order intake. - FY2019-Q3MaterialisedAnnual report
「However, the impact of weak demand in the smartphone market and a slowdown in the Chinese economy due to US-China trade friction on the capital investment decisions of electronic component manufacturers, our major customers, caused orders to remain sluggish even after the start of the third quarter.」
The impact on customers’ capital investment decisions continued and was reflected in sluggish order growth in the third quarter as well. - FY2019-Q2MaterialisedAnnual report
「However, orders remained sluggish because demand in the smartphone market was weak and the Chinese economy slowed due to the impact of US-China trade friction, temporarily reducing the capital investment appetite of electronic component manufacturers, our major customers.」
The decline in customers’ willingness to invest in capital equipment actually occurred and was described as sluggish order growth. - FY2019-Q1MitigatedAnnual report
「Under these circumstances, as in the previous fiscal year, we focused on securing orders for manufacturing equipment for communications lasers in the optoelectronics field, as well as high-frequency devices, MEMS and various sensors in the electronic components field. Orders and production remained firm in the first quarter.」
In response to a situation in which delays in customer capital investment and postponement of projects had previously affected performance, orders and production remained firm. - FY2018MitigatedAnnual report
「Sales discussions became more concrete for production equipment projects involving communications lasers and vertical-cavity surface-emitting lasers (VCSELs) in the optoelectronics field, as well as high-frequency devices, power devices, MEMS and various sensors in the electronic components field, and orders from multiple customers in Japan and overseas increased.」
In response to a situation in which the slowdown in capital investment and postponement of projects had resulted in sluggish orders, orders increased across multiple fields and customers, and full-year performance also recovered. - FY2018-Q3MitigatedAnnual report
「Business negotiations have taken concrete shape for production equipment projects involving communications lasers and vertical-cavity surface-emitting lasers (VCSELs) in the optoelectronics field, as well as high-frequency devices, power devices, MEMS and various sensors in the electronic components field. Orders from multiple customers in Japan and overseas have increased significantly, resulting in an order backlog of ¥2,747 million at the end of the cumulative third quarter, up 197.5% year on year.」
In response to a situation in which delays in customers’ capital investments and postponement of projects had affected performance, orders increased in multiple fields and the order backlog also increased significantly. - FY2018-Q2MitigatedAnnual report
「Orders from multiple customers in Japan and overseas increased significantly, and the order environment remained strong, as it had in the first quarter.」
In response to a situation in which delays and postponements of customers’ capital investments had affected performance, orders from multiple customers in Japan and overseas increased significantly. - FY2018-Q1MitigatedAnnual report
「Business negotiations for production equipment projects have taken concrete shape in such areas as communications lasers and vertical-cavity surface-emitting lasers (VCSELs) in optoelectronics, and high-frequency devices, MEMS and various sensors in electronic components, and we have received orders from multiple customers.」
In response to a situation in which delays and postponements of customers’ new capital investments had affected performance, business discussions progressed to specific opportunities and orders were secured in multiple fields. - FY2017MaterialisedAnnual report
「If customers freeze capital investment, reduce production or change plans, this could adversely affect the Company's results.」
The slowdown in capital investment demand and postponement of new production equipment investment projects have occurred and have been reflected in results as stagnant orders and a substantial decline in sales. - FY2017-Q3MaterialisedAnnual report
「Under these conditions, during the cumulative third-quarter period, orders continued to stagnate as demand for capital investment in high-frequency devices and other electronic components slowed and the tendency for new production equipment projects to be postponed continued. As a result, sales for the cumulative third-quarter period were low.」
The continued slowdown in capital investment demand and postponement of new production equipment projects have been reflected in actual results as stagnant orders and low sales. - FY2017-Q1MaterialisedAnnual report
「Demand for capital investment in high-frequency devices, which had driven the market through the previous fiscal year, has slowed, and the impact of delays in new capital investment has kept current demand for capital equipment at a standstill.」
Delays in customers' new capital investment are described as a factor behind stagnation in actual capital equipment demand. - FY2016First statedAnnual report
「Depending on changes in needs and the economic environment, the supply-demand balance may deteriorate significantly. If this results in customers freezing capital investment, reducing production or changing plans, this could adversely affect the Company's results.」
Alongside expectations for growth in the compound semiconductor market, the company independently identifies for the first time the freezing of customer capital investment, production cuts and plan changes as risks.