Component Procurement Risk Due to Global Semiconductor Shortages and Other Factors
First written in FY2021. 7 of 21 entries say "Mitigated", first in FY2024-Q2. Latest entry: 2026-10-01.
Oi Electric 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 2022: 99 of 155 companies on the "Worse" side.
30 other companies' latest entry also says "Materialised".
- 2026-10-01Materialisedfinance.yahoo.co.jp
「Soaring raw material prices, particularly for communications equipment for second-generation smart meters, also weighed on profit margins.」
The deterioration in profit margins caused by higher raw material prices led to the operating income forecast for the first half falling into the red. - FY2026Risk factors organized as supply chain disruptions and soaring raw material pricesAnnual report
「Our Group procures many materials, including semiconductors, from external suppliers. If disruptions in the supply chain, soaring raw material prices or other factors impede the procurement of materials, this may affect the Group's financial condition and operating results.」
The previous explanation, centered on semiconductor shortages and longer lead times, has been reframed as the risk of procurement difficulties caused by supply chain disruptions and soaring raw material prices. - 2026-05-15MitigatedEarnings
「Strengthening procurement resilience, including promoting product development that enables the use of alternative components」
The company continued to strengthen procurement resilience, including developing products that can use alternative components in response to component-procurement issues. - FY2026-H1MitigatedAnnual report
「During the interim consolidated accounting period, Japan's economy continued on a gradual recovery path, against a backdrop of the ongoing recovery in economic activity, associated wage increases by companies, an improving parts procurement environment, and expanding inbound demand.」
The disclosure describes an improving parts procurement environment, indicating that conditions surrounding the global procurement of materials have eased from the previous fiscal year. - FY2025MitigatedAnnual report
「During the consolidated fiscal year, the Japanese economy continued on a gradual recovery trend, supported by the continued recovery in economic activity, corporate wage increases and improved conditions for procuring components, as well as expanding inbound demand.」
The Company disclosed improved conditions for procuring components, indicating that the environment surrounding component procurement problems has eased from the previous fiscal year. Meanwhile, the risk disclosure itself continues. - FY2025-H1MitigatedAnnual report
「During the interim consolidated fiscal period, the Japanese economy continued on a gradual recovery trend, supported by the continued recovery in economic activity, corporate wage increases and improved conditions for procuring components, as well as expanding inbound demand.」
The Company disclosed improved conditions for procuring components, indicating that the environment surrounding component procurement risks has eased from the previous fiscal year. - FY2024MitigatedAnnual report
「The long-standing problem of extended component lead times was rapidly resolved, aided by persistent negotiations, allowing deliveries of products that had been held up to proceed.」
The problem of extended component lead times was rapidly resolved, and deliveries of held-up products proceeded. The impact of component procurement risks eased substantially, but the risks of soaring raw material prices and persistently high procurement costs remain. - FY2024-Q3MitigatedAnnual report
「Although difficult conditions remain in some areas, supply and demand for components is trending toward easing, and production activities across the Group are rapidly returning to normal.」
The Company disclosed an easing trend in supply and demand for components and progress toward normalization of production activities. However, difficult conditions remain in some areas. - FY2024-Q2MitigatedAnnual report
「Although difficult conditions remain in some areas, supply and demand for components is trending toward easing, and production activities across the Group are rapidly returning to normal.」
The Company disclosed an easing trend in supply and demand for components and progress toward normalization of production activities, indicating some improvement in the impact of component procurement problems. However, difficult conditions and delays in orders and sales remain. - FY2024-Q1Some procurement constraints have eased while sales delays continueAnnual report
「During the cumulative first quarter, orders in the information and communications equipment manufacturing and sales business were trending higher than in the previous fiscal year, and sales also increased year on year as some of the impact of component procurement problems was resolved.」
Although the Company states that sales increased year on year as some of the impact of component procurement problems was resolved, its analysis of operating results states that delays in orders and sales for some products continued. - FY2023-Q3WorsenedAnnual report
「In response to problems including prolonged component lead times caused by global shortages and extremely tight supply and demand, the Group has advanced measures particularly in its information and communications equipment manufacturing and sales business, including advance ordering to address extended component lead times, switching to components that are relatively easy to procure, carrying out the redevelopment and redesign required for that purpose, and further promoting multi-sourcing by expanding suppliers. However, sales of some products have been delayed.」
Although prolonged component lead times continue and various measures are being implemented, sales delays for some products have actually occurred. - FY2023-Q2WorsenedAnnual report
「Although orders remained firm, particularly for optical transmission equipment for telecommunications carriers, the impact on production caused by component procurement problems continued. Amid extremely difficult conditions in which some production activities stagnated, sales were delayed, resulting in sales of ¥3,710 million, a substantial decrease of 37.7% year on year.」
Although orders remained firm, production stagnation and sales delays caused by component procurement problems continued, and sales in the information and communications equipment manufacturing and sales business decreased 37.7% year on year. - FY2023-Q1WorsenedAnnual report
「In response to prolonged component procurement problems caused by global shortages and extremely tight supply and demand, the Group has experienced delays in orders and sales for some products, particularly in its information and communications equipment manufacturing and sales business」
The Company states that prolonged component procurement problems have actually caused delays in orders and sales for some products in its information and communications equipment manufacturing and sales business. - FY2022WorsenedAnnual report
「Component procurement problems caused by shortages of semiconductors and other components worldwide, resulting from the global spread of COVID-19, the situation in Russia and Ukraine and other factors, have become apparent worldwide. If these shortages continue for an extended period, they may affect the production capacity of the Company's products.」
The Company added supply chain disruptions caused by the situation in Russia and Ukraine and other factors to the causes of component procurement risks, and stated that semiconductor shortages had become apparent worldwide. - FY2022-Q3WorsenedAnnual report
「The effects of the spread of COVID-19, including postponed customer plans and delays in construction projects, as well as component procurement problems caused by global shortages of raw materials, particularly semiconductors, and extremely tight supply and demand, have continued for an extended period, making it difficult to foresee when the situation will be resolved.」
The Company states that the impact of component procurement problems caused by global shortages of semiconductors and other raw materials, as well as extremely tight supply and demand, has continued for an extended period, making it difficult to foresee when the situation will be resolved. - FY2022-Q2MaterialisedAnnual report
「Although demand for optical transmission equipment for telecommunications carriers and other products remained at a certain level, as in the previous fiscal year, the impact on production caused by component procurement problems became apparent. Although a recovery was seen from the previous fiscal year, which was heavily affected by the spread of COVID-19, sales were limited to ¥5,958 million, up 11.4% year on year. Segment loss was ¥858 million, a decrease in loss of ¥199 million year on year, due to lower sales caused by component procurement problems and a deterioration in the cost ratio resulting from higher component prices and other factors.」
The Company disclosed that shortages of semiconductors and other components had a specific impact on production, sales and the cost ratio of its information and communications equipment manufacturing and sales business. - FY2022-Q1MaterialisedAnnual report
「The effects of component procurement problems caused by global shortages of raw materials, particularly semiconductors, have become apparent.」
Regarding shortages of semiconductors and other components that had been identified worldwide in the previous fiscal year, the Company states that their impact on the business also became apparent during the quarter. - FY2021First statedAnnual report
「Component procurement problems caused by semiconductor supply shortages resulting from a sharp increase in demand due to the global spread of COVID-19 and factory fires, as well as shortages of nylon resin and phosphor bronze caused by the effects of a major power outage during a cold wave in the United States, have become apparent worldwide. If these shortages continue for an extended period, they may affect the production capacity of the Company's products.」
The Company identified component procurement problems caused by shortages of semiconductors, nylon resin and phosphor bronze worldwide and disclosed the potential impact on production capacity as a new major risk.