Higher component prices and costs, and shipment delays caused by supply shortages
First written in FY2019. 14 of 21 entries say "Worsened", first in FY2022-Q2. Latest entry: 2026-09-30.
Hpc Systems moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 99 of 155 companies on the "Worse" side.
51 other companies' latest entry also says "Restated".
- 2026-09-30RestatedBusiness Plan
「Sharp increases in the prices of key components, including semiconductors and memory」
Higher component prices and supply constraints continued to be identified as business risks, with advance procurement, price revisions and bringing forward order-taking activities presented as countermeasures. - FY2026WorsenedAnnual report
「Although the external environment was challenging, with uncertainty over U.S. trade policy, higher import costs due to the weaker yen and historically high memory prices, we worked to secure profits by improving profitability through strengthening our business platform and rigorous order management.」
Regarding the risks of higher component prices and import costs, historically high memory prices were described as an actual external condition, intensifying pressure on procurement and costs. - FY2026-H1WorsenedAnnual report
「Although negative external factors include higher import costs due to the weaker yen, soaring memory prices and concerns over a slowdown in the global economy due to uncertainty over U.S. trade policy, we are working to achieve the targets set out in the Medium-Term Management Plan Vision2027 under our management philosophy of "Contributing to world peace through the power of people and computing."」
In addition to the previously identified risks of higher import costs and trade policy, soaring memory prices and concerns over a slowdown in the global economy were described as negative factors. - FY2025WorsenedAnnual report
「Although negative external factors include higher import costs due to the weaker yen and concerns over electronic-component supply chain disruptions resulting from increased uncertainty over U.S. trade policy, we have formulated a new Medium-Term Management Plan Vision2027 under our management philosophy of "Contributing to world peace through the power of people and computing" and are working to enhance corporate value.」
In addition to higher import costs, concerns over electronic-component supply chain disruptions due to uncertainty over U.S. trade policy were described. - FY2025-H1WorsenedAnnual report
「Profitability deteriorated and margins declined as a result of responding to higher material prices and cost-reduction requests from some existing customers.」
It was explained that higher material prices and responses to cost-reduction requests from existing customers resulted in deteriorating profitability and lower margins in the CTO business. - FY2024MitigatedAnnual report
「Meanwhile, the deterioration in availability of high-performance graphics processing units (GPUs) for AI and supercomputers accompanying intensifying global competition to develop generative AI has eased, but high-end GPUs still require close monitoring. We are strengthening cooperation with our main suppliers and monitoring trends in the electronic components market to advance measures that will enable us to provide computing solutions aligned with customer requirements.」
It was explained that the deterioration in availability of high-performance GPUs amid competition to develop generative AI had eased. However, high-end GPUs remain subject to continued monitoring, and measures such as strengthening cooperation with main suppliers are continuing. - FY2024-Q3RestatedAnnual report
「Meanwhile, amid intense global competition to develop generative AI, deteriorating availability of high-performance graphics processing units (GPUs) for AI and supercomputers may make it difficult to respond promptly to customer demand. We are strengthening cooperation with our main suppliers and monitoring trends in the electronic components market to advance measures that will enable us to provide computing solutions aligned with customer requirements.」
The risk of deteriorating availability of high-performance GPUs amid competition to develop generative AI, and response measures such as strengthening cooperation with main suppliers, have been reconfirmed. - FY2024-Q2WorsenedAnnual report
「Although we have been working to pass on higher import costs resulting from the weaker yen and other increases to customers through higher selling prices, some projects had low profitability because the cost increases were not passed on sufficiently.」
It was stated that some projects became low-profitability projects because higher import costs were not sufficiently passed on through selling prices, making the impact on costs and profitability more specific. - FY2024-Q1WorsenedAnnual report
「Meanwhile, amid intense global competition to develop generative AI, deteriorating availability of high-performance graphics processing units (GPUs) for AI and supercomputers may make it difficult to respond promptly to customer demand. We are strengthening cooperation with our main suppliers and monitoring trends in the electronic components market to advance measures that will enable us to provide computing solutions aligned with customer requirements.」
In addition to the existing risk of shortages of electronic components, deteriorating availability of high-performance GPUs amid competition to develop generative AI was explicitly identified as a risk that could make it difficult to respond to customer demand. Measures such as strengthening cooperation with main suppliers were also described. - FY2023WorsenedAnnual report
「In the computing industry in which we operate, demand for technological innovation in areas such as computational science simulations, cloud computing, artificial intelligence (AI), deep learning and big-data processing remains firm. At the same time, manufacturing costs have been trending higher due to increases in resource prices resulting from heightened geopolitical risks, including the situation in Ukraine, and higher import costs caused by the weaker yen. Although we are working to pass these higher costs on to selling prices, doing so involves negotiations with customers and a certain time lag.」
In addition to higher resource, raw-material and import costs, negotiations and time lags in passing these increases on to selling prices have continued, sustaining pressure on costs and profitability. - FY2023-Q2WorsenedAnnual report
「Manufacturing costs have been trending higher due to increases in resource prices resulting from heightened geopolitical risks, including the situation in Ukraine, and higher import costs caused by the rapid depreciation of the yen. Although we are working to pass these higher costs on to selling prices, doing so requires customer understanding and involves a certain time lag. Meanwhile, the business environment surrounding us has changed significantly, with some customers requesting cost reductions in response to higher raw-material prices.」
Resource prices, raw-material prices and import costs have continued to rise, while there is also a time lag in passing these increases on to selling prices, and some customers have requested cost reductions. Pressure from higher costs and deteriorating profitability has intensified. - FY2023-Q1WorsenedAnnual report
「The business environment surrounding us has changed significantly, including higher raw-material and resource prices, increased import costs due to the weaker yen and longer lead times for obtaining electronic components due to supply chain disruptions. In response to longer lead times for electronic components resulting from supply chain disruptions caused by large-scale lockdowns in certain regions, we are securing a certain level of inventory and taking other measures to steadily meet the delivery schedules requested by customers.」
As longer lead times for electronic components continue, higher raw-material and resource prices and increased import costs due to the weaker yen have added to the burden on procurement and costs. - FY2022WorsenedAnnual report
「In addition, although the global shortage of electronic components has lengthened the lead time for product supply, we are steadily working to meet the delivery schedules requested by customers.」
The shortage of electronic components and longer product-supply lead times have continued. In addition, higher material prices and increased import costs due to the rapid depreciation of the yen were described, broadening the burden on procurement and costs. - FY2022-Q3WorsenedAnnual report
「The global shortage of electronic components has lengthened the lead time for product supply, but we are steadily working to meet the delivery schedules requested by customers.」
The shortage of electronic components and longer product-supply lead times have continued. Supply chain disruptions and higher resource prices were also described, indicating that uncertainty in the procurement environment persists. - FY2022-Q2WorsenedAnnual report
「The outlook remains uncertain due to the spread of highly transmissible variants, higher raw-material prices and supply chain disruptions resulting from growing concerns over global inflation. In addition, although the global shortage of electronic components has lengthened the lead time for product supply, we are steadily working to meet the delivery schedules requested by customers.」
The shortage of electronic components and longer product-supply lead times have continued, and higher raw-material prices and supply chain disruptions were also described. - FY2022-Q1MaterialisedAnnual report
「In addition, although the global shortage of electronic components has lengthened the lead time for product supply, we are steadily working to meet the delivery schedules requested by customers.」
The previously identified risks of component shortages and shipment delays actually occurred and were described as longer lead times for product supply. - FY2021MitigatedAnnual report
「Customer demand remained firm, and because components could be procured without significant disruption, the impact on our performance was relatively limited.」
It was explained that component procurement was not significantly disrupted even during the infectious disease outbreak and that the impact on supply during the fiscal year was limited. - FY2020MitigatedAnnual report
「Although the COVID-19 pandemic imposed various restrictions on business activity, including travel restrictions, and extended the time required to secure orders, customer demand remained firm and components were procured without major disruption. As a result, the impact on our performance was relatively limited.」
It is stated that component procurement was not significantly disrupted even during the infectious disease outbreak, and that the impact on supply during that period was limited. - FY2019First statedAnnual report
「If sharp increases in component prices, such as memory prices, or supply shortages occur, there may be a risk of higher costs and difficulty securing components, resulting in delayed product shipments and potentially affecting our business and performance.」
Both component prices and supply are identified as procurement risks.