Risk of increases in raw materials, purchased components and freight costs
First written in FY2019. 5 of 8 entries say "Worsened", first in FY2023-Q1. Latest entry: 2026-11-06.
Sinfonia Technology moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 103 of 163 companies on the "Worse" side.
47 other companies' latest entry also says "Worsened".
- 2026-11-06WorsenedResults
「Geopolitical risks, including instability in the supply of rare earths and the situation in the Middle East, will continue.」
The Company stated that instability in the supply of rare earths remains an issue in procurement and that geopolitical risks, including the situation in the Middle East, persist in the external environment. - FY2027-H1WorsenedAnnual report
「During the interim consolidated accounting period from 1 April 2026 to 30 September 2026, the Group’s operating environment remained favorable. This reflected strong conditions in the semiconductor market driven by increased AI-related demand and continued demand for defense-related equipment, despite ongoing geopolitical risks, including instability in rare-earth supply and the situation in the Middle East.」
Regarding raw material and component procurement risks, the company explicitly identified instability in rare-earth supply in addition to previously cited risks such as surging raw material prices. - FY2026WorsenedAnnual report
「In fiscal 2026, the Group's business environment is expected to become increasingly uncertain, amid concerns over heightened international tensions, the resulting surge in raw material and energy prices, and instability in the procurement of components and other items.」
Regarding risks related to raw materials and purchased components, the company explicitly identified soaring raw material and energy prices driven by international conditions, as well as instability in component procurement. It is addressing these risks by diversifying procurement routes, securing multiple suppliers, and considering alternative components. - FY2023-Q3RestatedAnnual report
「From the second half of the fiscal year, demand for semiconductors and electronic components declined rapidly, partly because investment in semiconductor industry equipment shifted toward restraint.」
While the company states that there were no significant changes to the existing risks related to material prices and component supplies themselves, the business environment was affected by a rapid decline in demand for semiconductors and electronic components accompanying restrained capital investment by the semiconductor industry. - FY2023-Q2WorsenedAnnual report
「Although the prolonged situation involving Russia and Ukraine, yen depreciation against the backdrop of monetary tightening in the United States and Europe, and the implementation of China's zero-COVID policy led to soaring resource and material prices and shortages of components and other items,」
Regarding the risk of higher prices for raw materials and purchased components, the company states that, in addition to soaring resource and material prices, shortages of components and other items actually affected the business environment during the quarter. - FY2023-Q1WorsenedAnnual report
「Although the Group's business environment was affected by soaring material prices, supply constraints for electronic components and lockdowns in China to prevent the spread of COVID-19, investment in semiconductor manufacturing equipment remained firm, supported by strong global demand for semiconductors.」
In addition to the existing risk of higher prices for raw materials and purchased components, the company explicitly identified soaring material prices and supply constraints for electronic components and other items as factors affecting the business environment during the quarter. - FY2021MitigatedAnnual report
「For components and other items, the Group is pursuing stable procurement by sourcing from multiple suppliers and working with suppliers to maintain and improve quality and reduce costs.」
In response to the risk of rising raw material, purchased component and transportation costs, the company specifies multiple sourcing, the search for substitutes and new suppliers, production cost reductions, and reviews of selling prices as countermeasures. - FY2019First statedAnnual report
「The Group is working to reduce costs through design standardization and productivity improvements and is also working to review selling prices. However, if it is unable to absorb rising raw material prices, the Group's results could be affected.」
The company identifies fluctuations in raw material, purchased component and transportation costs, and the potential impact on results if increases cannot be absorbed, as risks.