Dependence on External Manufacturing Contractors
First written in FY2016. 2 of 4 entries say "Restated". Latest entry: FY2023.
Axell moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2020: 4 of 20 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2023WorsenedAnnual report
「Furthermore, amid continuing tight semiconductor supply and demand, we have entered into long-term procurement agreements with some manufacturing contractors to secure production capacity and maintain stable supplies to customers. These procurement agreements include commitments to procure specified quantities during the contract periods. Our Group enters into long-term procurement agreements after preparing sufficient demand forecasts based on customer interviews and other information. However, if future market trends or other factors cause the quantities agreed under these contracts to diverge materially from actual demand, this could have a material impact on our Group’s business performance.」
In addition to dependence on external manufacturing contractors, the company newly specifies the risks associated with long-term procurement agreements to secure supply and a divergence between agreed quantities and actual demand. - FY2022RestatedAnnual report
「Our relationships with manufacturing contractors are currently sound, and no factors have arisen that would hinder the continuation of our business model. However, if sufficient production capacity cannot be secured at each manufacturing contractor, if an unforeseen event causes problems with a contractor’s facilities, or if a manufacturing outsourcing agreement is terminated, this could have a material impact on our Group’s business performance.」
The company reiterates its dependence on external manufacturing contractors and the risks relating to production capacity, facilities and contract termination. - FY2017RestatedAnnual report
「Our relationships with manufacturing contractors are currently sound, and no factors have arisen that would hinder the continuation of our business model. However, if sufficient production capacity cannot be secured at each manufacturing contractor, if an unforeseen event causes problems with a contractor’s facilities, or if a manufacturing outsourcing agreement is terminated, this could have a material impact on our business performance.」
While describing its relationships with manufacturing contractors as sound, the company reaffirms the risks associated with dependence on production capacity, facilities and the termination of contracts. - FY2016First statedAnnual report
「We have adopted a horizontally分業型 business model and focus primarily on R&D and sales strategy. Accordingly, because product manufacturing is outsourced to external companies, manufacturing outsourcing is an extremely important element of our business.」
The company indicates its dependence, underlying its fabless model, on production capacity, facilities and the continuation of contracts with manufacturing contractors.