Weakness in the Electronics Market, Including Smartphones

「During the interim consolidated accounting period, demand for AI servers and data centers increased in the electronics markets relevant to our group's business, driven by the spread of AI. Information and communications products, centered on smartphones, also remained firm. Automotive-related demand remained stable as vehicle electrification progressed, although stagnation in the EV market continued. Industrial equipment remained at a low level, but signs of recovery began to emerge in recent order trends.」

「In the electronics markets relevant to our group's business, capital investment in data centers expanded worldwide, particularly in North America, driven by the spread of AI. Automotive-related demand remained on a growth trend as vehicle electrification progressed, but signs of stagnation emerged in the growth of the EV market. Information and communications products, centered on smartphones, remained on a recovery trend, although the recovery lacked strength. Meanwhile, demand related to industrial equipment remained at a low level.」

「During the interim consolidated accounting period, the electronics markets relevant to our group's business showed a mixed performance by product segment. Demand for air conditioners in the consumer electronics sector and demand related to industrial equipment showed some signs of bottoming out but did not reach a full-scale recovery. Meanwhile, demand related to data centers in North America and elsewhere remained firm, and demand for information and communications products such as smartphones and PCs also picked up.」

「During the third-quarter cumulative period, the electronics markets relevant to our group's business continued to be affected by stagnation in the Chinese market and a delayed recovery in the semiconductor-related market, while automotive-related demand remained on a recovery trend.」

「During the second-quarter cumulative period, the electronics markets relevant to our group's business continued to be affected by stagnation in the Chinese market and declining semiconductor-related demand. Meanwhile, automotive-related demand showed signs of bottoming out as production constraints caused by shortages of components, particularly semiconductors, were gradually eased.」

「During the first-quarter cumulative period, the electronics markets relevant to our group's business showed a mixed performance by product segment. Demand for information and communications products such as smartphones and PCs, as well as semiconductor-related demand, remained weak, while demand for industrial equipment, which had been firm, also began to slow. Meanwhile, energy-related demand and demand for air conditioners in the consumer electronics sector remained firm.」

「The electronics market relevant to our group was affected by automotive production cuts due to semiconductor shortages and a slowdown in smartphones, PCs and other products following the reversal of stay-at-home demand. However, demand for consumer electronics such as air conditioners and industrial machinery such as robots remained resilient throughout the year.」

「The electronics market relevant to our group was negatively affected by automotive production cuts due to semiconductor shortages. However, demand remained resilient for consumer electronics such as air conditioners and industrial machinery aimed at enhancing and automating production.」

「Automotive-related businesses were affected by customers' production cuts due to semiconductor shortages, but demand for industrial machinery, consumer electronics and other products remained firm.」

「In the electronics market, demand for industrial machinery and consumer electronics remained high as economic activity recovered. In automotive-related businesses, however, production was cut as production adjustments were made due to delays in procuring components, particularly semiconductors.」

「In the electronics markets relevant to our group, strong demand for industrial machinery and consumer electronics continued, while automotive-related businesses experienced temporary production cuts due to semiconductor shortages and the resurgence of COVID-19 infections.」

「In the electronics market relevant to the Group, robust demand for industrial machinery and consumer electronics continued, but business operations remained difficult due to soaring raw material prices, including copper, iron, and petrochemical products, and difficulties procuring components, particularly semiconductors.」

「In the electronics market relevant to the Group, the automotive and information and communications markets recovered early, while demand for consumer electronics products remained at a high level, driven by stay-at-home demand. From around autumn onward, the industrial machinery market also began to recover rapidly.」

「In the electronics market relevant to the Group, signs of recovery began to emerge in the industrial machinery market, following the automotive and information and communications markets.」

「In the electronics market relevant to the Group, demand for industrial machinery and equipment-related products continued to stagnate as capital investment was restrained.」

「In the electronics market relevant to the Group, demand for industrial machinery and equipment-related products stagnated as capital investment was restrained, while automobile production was cut significantly.」

「The electronic chemicals and assembly-related business is highly profitable within the Group and drives Group earnings. However, it remained dependent on smartphones, its key challenge, and was affected by customer demands for cost reductions and intensifying competition for smartphone-related products. In addition, deferred customer capital investment made it difficult to secure sales of assembly equipment, resulting in lower revenue and operating income.」

「The electronics industry relevant to the Group remained in difficult conditions as stagnation in the industrial machinery-related market was compounded by sluggish global automobile sales.」

「In the electronics industry relevant to the Group, demand declined and plans were deferred across various fields, particularly those related to industrial machinery.」

「In the electronics industry relevant to the Group, demand related to industrial machinery and smartphones remained sluggish.」

「In the electronics industry relevant to the Group, a slowdown in the smartphone market and moves to restrain capital investment in the industrial machinery market became apparent.」

「Although activity related to vehicle electrification and the increased use of electronics was gaining momentum in the electronics industry relevant to the Group, recent demand remained somewhat weak, particularly in industrial machinery-related areas.」

「Although a slowdown was seen in smartphone-related products, the electronics industry relevant to the Group remained generally firm, led by automotive-related products, which are expected to grow in the future against the backdrop of vehicle electrification and the increased use of electronics.」

「In the electronics market relevant to the Group, industrial machinery-related demand, particularly in emerging markets, remained strong as production equipment was enhanced and automated, while automotive-related demand, expected to grow in the future against the backdrop of electrification and the increased use of electronics, also performed well. However, from the latter half of the fiscal year, concerns emerged, including ...slowing growth in the smartphone market recently....」

「Demand related to industrial machinery and automobiles continued to increase in the electronics market relevant to the Group.」

「In the Japanese economy, corporate earnings recovered and employment conditions improved. In the electronics market relevant to the Group, corporate activity remained firm, supported by factors including rising demand related to industrial machinery.」

「In Japan's electronics industry, production activity recovered and exports picked up, supported by factors including increased demand from China.」

「Solder resist for flexible circuit boards used in smartphones remained firm from the summer onward, while development progressed on high-reliability solder paste and solder resist for the automotive market as vehicle electrification advanced.」

「Production of solder resist for flexible circuit boards used in smartphones ramped up during the summer and progressed smoothly in the electronic chemicals business, while high-reliability materials for automotive applications also remained firm.」

「Various products in the electronics market relevant to the Group continued to lack momentum.」

「Against this market backdrop, the electronics market relevant to the Group remained weak, with various products, including smartphone-related products, lacking momentum.」