Supply disruptions for raw materials and components and rising electricity and energy costs
First written in FY2016. 13 of 22 entries say "Worsened", first in FY2020. Latest entry: FY2026-H1.
Japan Display 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 2021: 3 of 9 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「During the interim consolidated accounting period, the difficult competitive environment in the display industry continued. In addition, persistently high energy costs and further increases in materials and processing costs resulted in continued challenging business conditions.」
Even after component shortages eased, energy costs remained high and component and processing costs continued to rise further, deepening the risk of higher procurement and manufacturing costs. - FY2025WorsenedAnnual report
「During the interim consolidated accounting period, the difficult competitive environment in the display industry continued. In addition, persistently high energy costs and further increases in materials and processing costs resulted in continued challenging business conditions.」
Even after the easing of materials shortages, energy costs remained high and materials and processing costs continued to rise, with the risk of higher procurement and manufacturing costs persisting in the full-year results. - FY2025-H1WorsenedAnnual report
「During the interim consolidated accounting period, the difficult competitive environment in the display industry continued. In addition, persistently high energy costs and further increases in materials and processing costs resulted in continued challenging business conditions.」
Even after constraints on component supplies eased, energy costs remained high and component and processing costs continued to rise further, causing the risk of higher procurement and manufacturing costs to persist and worsen. - FY2024MitigatedAnnual report
「Although the Group's operating environment during the consolidated fiscal year benefited from easing shortages of semiconductors and other materials and the positive effects of the weaker yen, conditions remained difficult due to the already intense competition and persistently high energy, materials and processing costs caused by global inflation.」
Although shortages of semiconductors and other materials eased, elevated energy, materials and processing costs persisted. Supply constraints were partially reduced, but the risk of rising costs remained. - FY2024-Q3MitigatedAnnual report
「During the nine-month period ended 31 December, the group's business environment remained challenging, as forecast at the beginning of the period, due to persistently high material and energy costs resulting from global inflation, despite the easing of shortages of semiconductors and other materials and the positive effect of the weaker yen.」
Although shortages of semiconductors and other materials eased, material and energy costs remained high. The risk of supply constraints declined somewhat, but the risk of higher costs remained. - FY2024-Q2RestatedAnnual report
「Although shortages of semiconductors and other materials were largely resolved, conditions remained difficult as forecast at the beginning of the fiscal year due to consumers holding back on purchases of consumer electronics amid global inflation and persistently high materials and energy costs.」
The Company stated that shortages of components including semiconductors had largely been resolved, while consumers continued to defer purchases of consumer equipment and component and energy costs remained elevated. - FY2024-Q1Materials shortages eased; high costs continuedAnnual report
「Although shortages of components such as semiconductors had largely been resolved, conditions were difficult, as forecast in May, due to sluggish demand for consumer equipment against a backdrop of global inflation and continued increases in materials and energy costs.」
Supply constraints for semiconductors and other components were largely resolved, but higher material and energy costs continued, leaving cost-related risks. - FY2023WorsenedAnnual report
「Performance for the fiscal year was extremely challenging, affected by continued intense competition and rising global inflation.」
In addition to shortages of semiconductors and other materials, continued increases in materials, energy and transportation costs contributed to the expansion of the operating loss through delays in passing these costs on to customers. - FY2023-Q3RestatedAnnual report
「The operating environment was challenging due to supply-chain disruptions caused by the situation in Ukraine and China's COVID-19 measures, continued shortages of components such as semiconductors, and soaring material, energy and transportation costs, among other factors.」
Shortages of semiconductors and other materials, as well as higher material, energy and transportation costs, continued and were reconfirmed as constraints on the business environment alongside supply-chain disruptions. - FY2023-Q2WorsenedAnnual report
「During the six months ended in the second quarter of the fiscal year ended March 2023, the challenging business environment continued due to factors including the sustained decline in demand for liquid crystal displays for smartphones, supply chain disruptions caused by lockdowns in China and the situation in Ukraine, customer production adjustments resulting from continued shortages of semiconductors and other components, and higher component, energy and transportation costs.」
Shortages of components, including semiconductors, continued, while customer production adjustments and high component, energy, and transportation costs also persisted. The effects of supply constraints and higher procurement costs became apparent in the business environment during the quarter. - FY2023-Q1WorsenedAnnual report
「In addition to continued shortages of semiconductors and other materials and persistently higher material and energy costs, the situation became challenging due to supply chain disruptions caused by lockdowns in China, the impact of the situation in Ukraine, and production constraints at customers resulting from component shortages.」
Shortages of semiconductors and materials, higher material and energy costs, and supply-chain disruptions caused by lockdowns continued, affecting customers through production constraints and the company's own production cuts. - FY2022WorsenedAnnual report
「The business was seriously affected by supply-chain disruptions caused by COVID-19, global shortages of semiconductors and other materials, and soaring materials and energy costs.」
Shortages of semiconductors and other materials, higher material and energy costs, and supply chain disruptions had a serious impact on full-year performance. The Company also cited measures including long-term supply agreements, supplier diversification and securing inventory. - FY2022-Q3WorsenedAnnual report
「In the nine-month period of the fiscal year ending March 2022, the operating environment remained extremely challenging due to continued intense competition in the small- and medium-sized display industry, declining demand for LCD displays as major customers expanded their adoption of OLED (organic EL) displays in smartphones, shortages of components such as semiconductors, and rising procurement costs.」
Continued shortages of semiconductors and other materials and higher procurement costs affected production and sales in the automotive and non-mobile businesses. - FY2022-Q2WorsenedAnnual report
「Meanwhile, this field was strongly affected by component shortages, and the company was unable to supply enough to meet robust demand.」
Tight supply and higher prices for semiconductors and other materials continued, resulting in insufficient supply to meet strong demand in the automotive field. The non-mobile field was also affected by material shortages. - FY2022-Q1WorsenedAnnual report
「During the three-month cumulative period, the environment surrounding the group became even more challenging due to a serious imbalance between semiconductor supply and demand.」
The semiconductor supply-demand imbalance became more severe, newly highlighting the risk of lower production and fewer orders. However, the company stated that its efforts to secure stable medium- to long-term procurement from major semiconductor suppliers had reduced this risk. - FY2021-Q3WorsenedAnnual report
「The constraints on production caused by lockdowns and supply chain disruptions accompanying the spread of COVID-19 during the first half of the cumulative period were resolved in the second half. However, shortages and price increases occurred due to a sharp rise in demand for semiconductor components and other materials, and some impact on the company's and its customers' production began to emerge.」
Although constraints caused by lockdowns and supply chain disruptions were resolved in the latter half, shortages and price increases for semiconductor components and other items newly emerged, and their impact on production began. - FY2021-Q2MitigatedAnnual report
「The production constraints caused by the spread of COVID-19 at our Philippine back-end processing subsidiary, which affected shipments during the first quarter of the consolidated accounting period, had been resolved by the end of the second quarter.」
The Company stated that production constraints at its Philippine back-end subsidiary caused by the spread of infection had been resolved by the end of the second quarter. - FY2021-Q1WorsenedAnnual report
「Revenue decreased from the previous quarter due to delays in the recovery of production at the Philippine back-end processing subsidiary and lower demand for digital cameras.」
Risks related to components and production continuity affected sales, which declined from the previous quarter as a result of delayed production recovery at the Philippine backend-process subsidiary. - FY2020WorsenedAnnual report
「Shipments declined due to personnel and component shortages caused by lockdowns and other factors, while customer demand also decreased.」
Regarding risks to component supplies and production continuity, lockdowns, labor shortages, component shortages and reduced shipment volumes associated with COVID-19 actually occurred. - FY2019RestatedAnnual report
「For some raw materials and components, suppliers are limited due to their specialized nature, while switching suppliers is difficult for others.」
The company reiterated the risks of delays in, shortages of, price increases for and quality problems with materials, as well as rising electricity and energy costs. - FY2017RestatedAnnual report
「For some raw materials and components, suppliers are limited due to their specialized nature, while switching suppliers is difficult for others.」
The risks of delays in, shortages of and price increases for materials, quality issues, and higher energy costs were reiterated. - FY2016First statedAnnual report
「For some raw materials and components, suppliers are limited due to their specialized nature, while switching suppliers is difficult for others.」
In addition to supply delays, shortages, price increases and quality deterioration, the company cited power supply restrictions and higher electricity charges resulting from the weaker yen as risks.