Rising purchase prices and lower gross margins due to the global semiconductor supply-demand crunch
First written in FY2022-Q1. 6 of 17 entries say "Materialised", first in FY2022-Q1. Latest entry: 2026-09-28.
Axell moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2018: 12 of 31 companies on the "Worse" side.
23 other companies' latest entry also says "Materialised".
- FY2026Added soaring memory prices due to generative AI demandAnnual report
「In the semiconductor industry, manufacturing costs for certain products have been trending upward due to soaring crude oil and raw material prices amid the situations involving Russia and Ukraine and the Middle East, as well as globally rising memory prices accompanying the expansion of generative AI demand.」
In addition to the previously identified increases in resource and raw material prices, the Company explicitly identified globally rising memory prices due to expanding generative AI demand as a factor driving higher manufacturing costs. - FY2025Explicit identification of supply chain and manufacturing cost risks arising from US trade policyAnnual report
「In the semiconductor industry, manufacturing costs have been trending upward due to higher crude oil and raw material prices amid the situation involving Russia and Ukraine. In addition, concerns have arisen regarding the impact of US trade policy on supply chain disruptions and manufacturing costs.」
In addition to the previously identified risks related to soaring resource prices and other factors, the Company explicitly identified supply chain disruptions and the impact on manufacturing costs arising from US trade policy as new areas of concern. - FY2024-Q3RestatedAnnual report
「The segment's order backlog at the end of the third quarter was ¥17,092 million. Many manufacturers were actively securing components amid tight semiconductor supply and demand, and the backlog includes sales scheduled for the next fiscal year and beyond.」
The Company reconfirmed that manufacturers' component procurement activity, driven by tight semiconductor supply and demand, has resulted in an order backlog that includes products scheduled for future sale. - FY2024-Q1RestatedAnnual report
「The segment's order backlog at the end of the first quarter was ¥22,437 million. Many manufacturers were actively securing components amid tight semiconductor supply and demand, and the backlog includes sales scheduled for the next fiscal year and beyond.」
The Company reiterated that tight semiconductor supply and demand and manufacturers' component procurement activity have continued, and that the order backlog includes products scheduled for sale from the next fiscal year onward. - FY2023MaterialisedAnnual report
「The gross profit margin was 31.4%, down 1.6 points from the previous fiscal year, due to changes in the product mix and higher procurement unit prices for certain products, among other factors.」
Higher procurement unit prices for certain products and other factors continued, resulting in a 1.6-point decrease in the gross profit margin from the previous fiscal year to 31.4%. - FY2023-Q3RestatedAnnual report
「Due to the global semiconductor supply shortage, many manufacturers are actively securing components, and this order backlog includes products scheduled for sale in the next and subsequent fiscal years.」
The semiconductor supply shortage has affected manufacturers' component procurement activity and the composition of the order backlog, and the Company reiterated that the backlog includes products scheduled for sale in the next and subsequent fiscal years. - FY2023-Q2RestatedAnnual report
「During the first six months of the current fiscal year, COVID-19 vaccination steadily expanded and socioeconomic activity was moving toward normalization. However, the economic outlook remained uncertain due to the prolonged situation in Ukraine, semiconductor shortages, soaring global resource prices, and concerns about inflation.」
An uncertain economic environment has continued due to the semiconductor supply shortage, soaring resource prices, the prolonged situation in Ukraine and concerns about inflation. - FY2023-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, COVID-19 vaccination steadily expanded and socioeconomic activity was moving toward normalization, but the situation remained far from bringing infections under control. In addition to the spread of new variants, the economic outlook remained uncertain amid semiconductor shortages, soaring global resource prices, and concerns about inflation.」
An uncertain economic environment has continued due to the semiconductor supply shortage, soaring resource prices, concerns about virus variants and inflation. - FY2022WorsenedAnnual report
「The semiconductor industry has continued to experience a global supply shortage due to supply chain disruptions caused by the COVID-19 pandemic and strong demand, including for automotive applications. In addition, crude oil and raw material prices have risen amid the situation involving Russia and Ukraine, and manufacturing costs have been trending upward. The Group is passing through some of these costs to selling prices for certain products. However, if these effects persist, manufacturing costs may rise further and the Group may be unable to pass through the increases sufficiently relative to the rise in manufacturing costs. If the manufacturing period for products is extended and this leads to the materialization of lost revenue opportunities or other effects, the Group's operating results may be materially affected.」
In addition to actual increases in procurement unit prices due to the semiconductor supply shortage, the Company explicitly identified supply chain disruptions, soaring resource prices, the situation involving Russia and Ukraine, insufficient price pass-through and longer manufacturing periods as risks. - FY2022-Q3MaterialisedAnnual report
「In the semiconductor market, many manufacturers are actively securing components due to tight supply and demand, and this order backlog includes products scheduled for sale from the next fiscal year onward.」
Tight semiconductor supply and demand affected actual component procurement activity and the composition of the order backlog, and the Company stated that the ¥10,931 million order backlog includes products scheduled for sale from the next fiscal year onward. - FY2022-Q2MaterialisedAnnual report
「The decrease in the gross profit margin was attributable to changes in the product sales mix, as well as the impact of higher cost ratios accompanying revised procurement unit prices for certain products resulting from tight global supply and demand for semiconductor products.」
Revisions to procurement unit prices and higher cost ratios due to tight global supply and demand for semiconductor products continued, contributing to a 4.2-point year-on-year decrease in the gross profit margin. - FY2022-Q1MaterialisedAnnual report
「The decrease in the gross profit margin was attributable to changes in the product sales mix, as well as the impact of revised procurement unit prices for certain products resulting from tight global supply and demand for semiconductor products.」
The Company stated that actual revisions to procurement unit prices for certain products occurred due to tight global supply and demand for semiconductor products, contributing to a 5.1-point year-on-year decrease in the gross profit margin.