Dependence on the Semiconductor Manufacturing Equipment Market and Demand Volatility Risk
First written in FY2020. 9 of 26 entries say "Materialised", first in FY2024-Q1. Latest entry: 2026-11-12.
Ebrains moved to the "Worse" side of this theme in 2022, 3 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 16 of 25 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MaterialisedAnnual report
「Due to the impact of postponed capital investment in the core semiconductor manufacturing equipment business, sales for the consolidated fiscal year decreased by ¥169 million, or 6.9%, year on year to ¥2,289 million, while the sales mix fell from 61.1% in the previous fiscal year to 57.3%.」
Postponed capital investment in semiconductor manufacturing equipment actually led to lower sales in the core measurement and control business. Sales decreased by 6.9% year on year, while the sales mix also fell from 61.1% to 57.3%. - FY2026-H1MaterialisedAnnual report
「Due to continued inventory adjustments for core models and lower capital investment related to EVs, sales of semiconductor manufacturing equipment for the interim consolidated accounting period decreased by ¥37 million, or 3.2%, year on year to ¥1,142 million, while the sales mix fell from 61.1% in the same period of the previous year to 59.0%.」
Inventory adjustments and lower EV-related investment continued in the core semiconductor manufacturing equipment business, resulting in a 3.2% year-on-year decline in sales. Although the sales mix declined, the impact of market dependence on operating results actually occurred. - FY2025MitigatedAnnual report
「Sales of semiconductor manufacturing equipment turned upward as inventories were worked down and some customers resumed placing orders. As a result, sales for the consolidated fiscal year increased by ¥15 million, or 0.6%, year on year to ¥2,459 million, while the sales mix declined from 61.3% in the previous fiscal year to 61.1%.」
In the semiconductor manufacturing equipment business, sales turned upward as inventories were worked down and some customers resumed placing orders, while the sales mix also declined slightly. The recent impact of market dependence risk was partially alleviated. - FY2025-H1MaterialisedAnnual report
「The impact of freezes and postponements of capital investment in semiconductor manufacturing equipment continued from April 2024 onward, and sales in the Group's core measurement and control business remained on a declining trend. Measurement and control [semiconductor manufacturing equipment, inspection equipment, FA-related] Capital investment in legacy equipment for China increased in the semiconductor manufacturing equipment business, but the impact on the Group was limited. In addition, production adjustments due to customers' unsold inventories resulted in lower shipments of high-margin products. As a result, sales for the interim consolidated accounting period decreased by ¥104 million, or 8.1%, year on year to ¥1,179 million, while the sales mix fell from 62.5% in the same period of the previous year to 61.1%.」
The freezes and postponements of capital investment in semiconductor manufacturing equipment and customers' unsold inventories continued, resulting in an 8.1% year-on-year decline in sales in the core measurement and control business. The sales mix also fell from 62.5% to 61.1%. The actual impact on operating results is continuing. - FY2024MaterialisedAnnual report
「Against a backdrop of the downturn in the Chinese economy and weak global demand related to the Russia-Ukraine situation, the semiconductor market, which grew at a pace that set new records in 2021 and 2022, experienced a series of freezes and postponements in capital investment in semiconductor manufacturing equipment, particularly for memory applications. Sales in the Group's core measurement and control business consequently remained on a declining trend.」
The risk of dependence on the semiconductor manufacturing equipment market actually affected operating results through freezes and postponements of capital investment and production adjustments associated with higher customer inventories. Sales in the measurement and control business decreased by 14.4% year on year to ¥2,444 million, while its sales mix fell from 67.1% to 61.3%. - FY2024-Q3MaterialisedAnnual report
「Against a backdrop of the downturn in the Chinese economy and weak global demand related to the Russia-Ukraine situation, the semiconductor market, which grew at a pace that set new records in 2021 and 2022, experienced a series of freezes and postponements in capital investment in semiconductor manufacturing equipment, particularly for memory applications. Sales in the Group's core measurement and control business consequently remained on a declining trend.」
The risk of dependence on the semiconductor manufacturing equipment market actually materialized in the form of freezes and postponements of capital investment and declining sales in the measurement and control business. Sales in the business decreased by 10.8% year on year to ¥1,920 million, while its sales mix fell from 68.3% to 62.3%. - FY2024-Q2MaterialisedAnnual report
「As inventory adjustments for semiconductor devices neared completion, the decline narrowed, particularly for memory applications, in anticipation of a resumption of investment in servers for AI applications. The forecast for 2024 investment was DRAM at $15.0 billion, up 40% from the previous fiscal year, and NAND at $12.1 billion, up 113%. As a result, sales for the cumulative second quarter of the current consolidated fiscal year decreased by ¥148 million, or 10.4%, year on year to ¥1,284 million, while the sales mix fell from 69.8% in the same period of the previous year to 62.5%.」
Regarding the risk of dependence on the semiconductor manufacturing equipment market, sales in the measurement and control business decreased by 10.4% year on year due to lower investment in memory applications, demonstrating that the risk has actually affected operating results. The Company also states that the decline in investment is expected to narrow and that the business's sales mix fell from 69.8% to 62.5%. - FY2024-Q1MaterialisedAnnual report
「The semiconductor market, which grew at a pace that set new records in 2021 and 2022, experienced a series of freezes and postponements in capital investment in semiconductor manufacturing equipment, particularly for memory applications, due to the downturn in the Chinese economy under the zero-COVID policy and weak global demand related to the Ukraine situation. As a result, sales in the Group's core measurement and control business declined.」
Regarding the risk of dependence on the semiconductor manufacturing equipment market, freezes and postponements of capital investment for memory applications actually occurred, and sales in the core measurement and control business decreased by 8.9% year on year. Meanwhile, the business's sales mix declined from 69.4% to 62.7%. - FY2023WorsenedAnnual report
「In the global semiconductor market, capital investment for data centers and smartphones declined due to weak performance by GAFAM, while NAND flash memory and DRAM became oversupplied, leading some customers to freeze capital investment, particularly in semiconductor manufacturing equipment for memory applications. In addition, some customers adjusted production of the latest semiconductor manufacturing equipment from the third quarter onward due to export restrictions to China and other factors. However, the plans of major semiconductor manufacturers and foundries (semiconductor contract manufacturers) to build substantially increased production capacity against a backdrop of the global semiconductor shortage remained unchanged, and investment continued to increase. The Group also benefited from this trend, resulting in higher sales.」
The reduction in investment for data centers and smartphones, the freeze in investment for memory applications, and customer production adjustments due to export restrictions to China actually occurred. Meanwhile, sales increased because of higher investment in logic applications. The sales mix of the measurement and control business rose from 65.3% to 67.1%, further increasing dependence. - FY2023-Q3WorsenedAnnual report
「In the global semiconductor market, capital investment in semiconductor manufacturing equipment for memory applications declined as products for data centers and 5G-related applications trended downward, while NAND flash memory and DRAM were oversupplied. Some customers also adjusted production of semiconductor manufacturing equipment due to export restrictions to China and other factors. Meanwhile, capital investment in semiconductor manufacturing equipment for logic applications continued to increase, as major semiconductor manufacturers and foundries (semiconductor contract manufacturers) built substantially increased production capacity against a backdrop of a global semiconductor shortage. The Group also benefited from this trend, resulting in higher sales. As a result, sales for the cumulative third quarter of the current consolidated fiscal year increased by ¥225 million, or 11.7%, year on year to ¥2,152 million, while the sales mix rose from 64.8% in the same period of the previous year to 68.3%.」
The reduction in capital investment for memory applications and customer production adjustments due to export restrictions to China actually occurred. The sales mix of the measurement and control business rose from 64.8% to 68.3%, further increasing the concentration of sales in the semiconductor manufacturing equipment market. - FY2023-Q2WorsenedAnnual report
「As a result, sales for the cumulative second quarter of the current consolidated fiscal year increased by ¥177 million, or 14.2%, year on year to ¥1,432 million, while the sales mix rose from 65.0% in the same quarter of the previous year to 69.8%.」
The sales mix of the measurement and control business rose from 65.0% to 69.8%, further increasing the concentration of sales in the semiconductor manufacturing equipment market. Some customers also postponed capital investment for memory applications. The risk exposure has been quantified, and some demand volatility has materialized. - FY2023-Q1WorsenedAnnual report
「As a result, sales for the cumulative first quarter of the current consolidated fiscal year increased by ¥52 million, or 8.2%, year on year to ¥696 million, while the sales mix rose from 66.6% in the same quarter of the previous year to 69.4%.」
The sales mix of the measurement and control business rose from 66.6% in the same quarter of the previous year to 69.4%, further increasing the concentration of sales in the semiconductor manufacturing equipment market. - FY2022WorsenedAnnual report
「In recent years, the Group has generated a large proportion of its sales from semiconductor manufacturing equipment-related business. If demand declines in markets such as semiconductors, where conditions can change rapidly, or market conditions cause the industry as a whole to restrain capital investment, the Group's financial position and operating results may be adversely affected by factors such as lower orders and increased inventories.」
The sales mix of the measurement and control business rose from 56.7% in the previous fiscal year to 65.3%, further increasing the concentration of sales in the semiconductor manufacturing equipment market. - FY2022-Q3RestatedAnnual report
「As a result, sales for the cumulative third quarter of the current consolidated fiscal year increased by ¥602 million, or 45.5%, year on year to ¥1,927 million, while the sales mix rose from 55.5% in the same quarter of the previous year to 64.8%.」
The sales mix of the measurement and control business rose from 55.5% in the same quarter of the previous year to 64.8%, and dependence on the semiconductor manufacturing equipment market remained high. However, it was slightly lower than the previous quarter's 65.0%. - FY2022-Q2WorsenedAnnual report
「Our core semiconductor manufacturing equipment business benefited from the decline in production of consumer and automotive-related equipment due to COVID-19, while investment in data centers and 5G-related areas remained firm. As a result, the projected market size for Japanese semiconductor manufacturing equipment in fiscal 2021 was revised substantially upward from ¥2,920 billion, up 22.5% year on year (SEAJ announcement in July 2021), to ¥3,260 billion, up 36.9% year on year (SEAJ announcement in October 2021). Benefiting from this trend and the conclusion of new projects, sales for the cumulative second quarter of the current consolidated fiscal year increased by ¥364 million, or 41.0%, year on year to ¥1,254 million, while the sales mix rose from 55.2% in the same period of the previous year to 65.0%.」
The sales mix of the measurement and control business rose from 55.2% in the same quarter of the previous year to 65.0%, increasing the concentration of sales in the semiconductor manufacturing equipment market. The Company states that there was no material change in the business risks themselves. - FY2022-Q1RestatedAnnual report
「In particular, in the semiconductor manufacturing equipment market within our core measurement and control business, major semiconductor manufacturers and foundries (semiconductor contract manufacturers) are building substantially increased production capacity against a backdrop of a global semiconductor shortage. This has accelerated capital investment in semiconductor manufacturing equipment for next-generation processes and memory applications, resulting in higher sales.」
Capital investment accelerated against a backdrop of the global semiconductor shortage, increasing sales in the measurement and control business. The existing structural dependence on the semiconductor manufacturing equipment market continues, and the Company states that there has been no material change in the risk itself. - FY2021RestatedAnnual report
「In recent years, the Group has generated a large proportion of its sales from semiconductor manufacturing equipment-related business. If demand declines in markets such as semiconductors, where conditions can change rapidly, or market conditions cause the industry as a whole to restrain capital investment, the Group's financial position and operating results may be adversely affected by factors such as lower orders and increased inventories.」
The Company continues to disclose the risk of dependence on the semiconductor manufacturing equipment market. While the sales mix of the measurement and control business rose from 49.2% to 56.7%, sales in the business increased due to higher capital investment in next-generation processes and memory applications. - FY2021-Q3RestatedAnnual report
「Meanwhile, in the semiconductor manufacturing equipment market within our core electrical measuring instruments business, capital investment related to next-generation processes by major semiconductor manufacturers has remained strong, with no impact from COVID-19. As capital investment in semiconductor manufacturing equipment for memory applications in South Korea, Japan and the United States is entering full swing, we expect the impact of COVID-19 for the full fiscal year to be limited.」
While continuing to recognize the potential for dependence on the semiconductor manufacturing equipment market and demand volatility, we expect the full-year impact of the pandemic to be limited, as capital investment in next-generation processes and memory applications remains strong. - FY2021-Q2RestatedAnnual report
「Meanwhile, in the semiconductor manufacturing equipment market within our core electrical measuring instruments business, capital investment related to next-generation processes by major semiconductor manufacturers has remained strong, with no impact from COVID-19. In addition, as reported, Taiwanese foundries (semiconductor contract manufacturers) experienced production adjustments in some areas due to the suspension of orders from Chinese telecommunications equipment manufacturers, but are recovering after starting additional capital investment ahead of schedule.」
The Group continues to recognize its dependence on the semiconductor manufacturing equipment market and the risk of demand adjustments. Although production adjustments occurred in some areas, the Group explained that the market is trending toward recovery due to additional capital investment. Sales in the electrical measuring instruments business were ¥890 million, representing 55.2% of total sales, quantifying the degree of dependence. - FY2021-Q1RestatedAnnual report
「As reported, some semiconductor manufacturers may adjust production going forward due to the suspension of orders from Chinese telecommunications equipment manufacturers. However, we expect the impact to be limited because capital investment in semiconductor manufacturing equipment for memory applications, particularly in South Korea, is entering full swing.」
While continuing to recognize the potential for dependence on the semiconductor manufacturing equipment market and demand adjustments, we expect the impact to be limited because of capital investment, particularly in South Korea. - FY2020First statedAnnual report
「In recent years, the Group has generated a large proportion of its sales from semiconductor manufacturing equipment-related business. If demand declines in markets such as semiconductors, where conditions can change rapidly, or market conditions cause the industry as a whole to restrain capital investment, the Group's financial position and operating results may be adversely affected by factors such as lower orders and increased inventories.」
Electrical measuring instruments accounted for 49.2% of sales. The impact of postponed capital investment in semiconductor manufacturing equipment and inventory adjustments in the first half actually materialized, with sales down 6.7% year on year.