Business Performance Fluctuations Driven by Supply and Demand for Printed Circuit Boards and Technological Innovation

「当社グループが属する電子基板業界は、原材料・エネルギー価格の変動に伴う製造コストの増加や石油由来材料の調達環境への懸念はあったものの、生成ＡＩ関連需要の拡大を背景にデータセンター及びＡＩサーバー向けを中心とした需要が底堅く推移いたしました。」

「Although demand for data centers and AI servers expanded strongly against a backdrop of growing demand related to generative AI, the electronic circuit board industry in which the Group operates remained uncertain due to fluctuations in crude oil and energy prices associated with heightened tensions in the Middle East and concerns about the procurement environment for petroleum-derived materials.」

「生成ＡＩ関連需要の拡大を背景に、データセンター及びＡＩサーバー向け需要が力強く拡大したものの、中東情勢の緊迫化に伴う原油・エネルギー価格の変動や、石油由来材料の調達環境へ の懸念等により、不透明な状況で推移いたしました。」

「Although Japan's domestic EV market remained sluggish, the electronic circuit board industry as a whole performed firmly, supported by replacement demand for PCs following the end of OS support, expanded use of generative AI, increased data center demand, and recovering demand for high-end smartphones.」

「The printed circuit board industry (Note 1) in which our Group operates saw stagnant demand for industrial equipment and automotive applications, including prolonged inventory adjustments. However, demand for data centers remained solid against a backdrop of expanding generative AI-related demand, resulting in a bifurcation in demand trends following inventory adjustments stemming from the special demand during the COVID-19 pandemic.」

「Although signs of recovery have emerged in the data center market amid the launch of new smartphone models and the growing use of generative AI (artificial intelligence), the environment surrounding the Group remained weak as the impact of the global decline in the EV market continued and inventory adjustments for semiconductor- and electronic-device-related products, particularly for industrial equipment, persisted.」

「Although demand for servers for data centers and consumer PCs increased amid the expansion of the generative AI-related market, the electronic circuit board industry in which our Group operates performed weakly because demand for high-function automotive products remained sluggish due to the slowdown in the global EV market and automobile production cuts resulting from the impact of misconduct issues and other factors, as well as weak demand for consumer products such as smartphones.」

「Although demand for high-function products for EVs and advanced driver-assistance systems remained firm, the electronic circuit board industry in which the Group operates performed weakly due to the longer-than-expected inventory adjustments by industrial equipment customers, sluggish capital investment demand resulting from the stagnation of the Chinese economy, and weak demand for products related to ICT (information and communications technology).」

「Although demand for automotive products, mainly EVs and advanced driver-assistance systems, remained firm as supply constraints for electronic components eased, the electronic circuit board industry in which the Group operates performed weakly due to prolonged inventory adjustments for smartphones, PCs and other products following softer demand, as well as weak demand for products for data centers and industrial equipment.」

「Although demand for consumer products such as smartphones and PCs, as well as products for data centers and industrial equipment, remained weak due to the reversal of stay-at-home demand and a cautious stance on capital investment, the electronic circuit board industry in which our Group operates continued to perform solidly, driven by demand for automotive products, particularly EVs and advanced driver assistance systems.」

「There were also no material changes in the risks relating to the business and other matters described in the securities report for the previous consolidated fiscal year.」

「Although demand for consumer products such as smartphones and PCs remained weak following the reversal of stay-at-home demand, the electronic circuit board industry in which our Group operates continued to perform solidly, with new factories being built in Southeast Asia to meet strong demand in growth areas such as 5G, EVs and autonomous driving.」

「The electronic circuit board industry in which our Group operates maintained solid performance as supply chains normalized and demand recovered following the phased lifting of lockdowns in China, while demand for semiconductor package substrates and power module substrates in growth fields such as communications devices, EVs and industrial equipment remained high. In addition, successive plans were announced for higher functionality, including high-density multilayer substrates, active materials development and expanded production capacity.」

「The electronic circuit board industry in which our Group operates continued to perform solidly as demand for semiconductor package substrates and power module substrates in growth fields such as 5G, EVs and industrial equipment remained high and continued to drive the market. Semiconductor-related manufacturers actively pursued higher functionality, including high-density multilayer substrates, development of low-transmission-loss substrate materials, and expansion of production capacity.」

「Although the impact of difficulties in procuring materials and logistics disruptions remains in the electronic circuit board industry in which the Group operates, demand for semiconductor package substrates and power module substrates in growth fields such as 5G, EVs and industrial equipment remained firm.」

「The electronic circuit board industry in which our Group operates was buoyant as intensifying global supply-demand tightness for semiconductors used in 5G communications and EVs accelerated the strengthening of production capacity, particularly among manufacturers of large package substrates. Manufacturers, including production equipment and materials companies, advanced development aimed at new market entry and further miniaturization.」

「The electronic circuit board industry in which our Group operates continued to perform solidly as demand remained high for high-performance package substrates carrying CPUs, AI chips and other components for PCs and servers, as well as large package substrates for automotive applications amid the full-scale recovery of global automobile production. Manufacturers, including production equipment and materials companies, advanced large-scale capital investment plans.」

「The electronic circuit board industry in which our Group operates continued to perform solidly, driven by increased demand for semiconductor package substrates for PCs and servers as DX progressed in response to the COVID-19 pandemic, and for power module substrates as the EV market expanded, amid the spread of 5G-enabled IoT products. Capital investment to expand production lines and development of substrates using next-generation materials became more active.」

「Consolidated net sales were ¥3,175 million, down 18.5% year on year, a decrease of ¥721 million from the previous consolidated fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「Although the electronic circuit board industry in which our Group operates was expected to benefit from expanding new business opportunities through the full-scale adoption of 5G (next-generation communications standards), production and sales activity stagnated due to the impact of US-China trade tensions and the global spread of the COVID-19 pandemic.」

「Although the electronic circuit board industry in which our Group operates had been expected to see steady demand growth from expanding business opportunities driven by the full-scale adoption of 5G (next-generation communications standards) and the expanding market for high-value-added automotive equipment, many factories in China suspended operations due to the impact of the COVID-19 pandemic, and production and consumption activity continued to stagnate worldwide.」

「Consolidated net sales were ¥3,896 million, down 15.0% year on year, a decrease of ¥686 million from the previous consolidated fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「FPC (¥100 million) 811.4　748.8　902.9　798.6　736.2　Year-on-year change (%) △23.1　△7.7　＋20.6　△11.6　△7.8」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were also no material changes during the most recent year to the business and other risks described in the annual securities report for the previous fiscal year.」

「As described above, if supply and demand for electronic circuit boards becomes disrupted due to trends in the electronic components industry or technological innovation in electronic circuit boards such as FPCs, this may have a material impact on the Group's operating results.」