Shift in demand toward Asia, including China, and decline in domestic demand for mass production

「Overseas, orders for LED lighting, air conditioners and other home appliances, as well as high-value-added metal substrates for automotive applications, increased. However, total orders for automotive applications declined, causing revenue to fall below the same period of the previous year.」

「国内では自動車の生産低迷が続いており、家電製品などの生産は増加したものの、需要は依然として足踏みが見られました。」

「During the interim consolidated accounting period, the printed circuit board industry in which the Company operates continued to experience weak automotive production in Japan. Although production of home appliances and other products increased, demand remained sluggish. Overseas, a gradual recovery continued in ASEAN.」

「During the interim consolidated accounting period, the printed circuit board industry in which the Company operates continued to experience weak domestic demand due to the suspension of production and shipments by automakers. Overseas, the North American market remained firm.」

「To address these conditions, the Group sells products for a broad range of applications and secures multiple sales channels so that it does not depend on a particular customer even for the same application. It is working to mitigate the risks of demand fluctuations by using a sales share of approximately 10% per customer as a guideline.」

「During the first 9 months of the fiscal year, the printed circuit board industry in which the Company operates saw a recovery in automotive demand as semiconductor shortages eased, but demand declined in other sectors against a backdrop of prolonged inventory adjustments and rising prices.」

「During the first half of the fiscal year, the printed circuit board industry in which the Company operates saw a recovery in automotive demand as semiconductor shortages eased, but overall demand declined due to inventory adjustments in other sectors and the waning of stay-at-home consumption. Overseas, orders in China's automotive-related sector recovered, but orders declined mainly in the office equipment and electronic component sectors, including power supplies. In contrast, orders in Vietnam increased substantially, supported by strong demand in the automotive-related sector and the transfer of production from China as supply chains were reorganized.」

「Overseas, orders declined in China and Indonesia, mainly in the office equipment and electronic component sectors, including power supplies. In contrast, orders in Vietnam increased substantially, supported by strong demand in the automotive-related sector and the transfer of production from China as supply chains were reorganized.」

「To address these conditions, the Group established a factory in Vietnam, which offers greater competitiveness in Asia, and is strengthening its production structure. In Japan, it is expanding its capabilities for high-density products manufactured using printing methods, prototypes and small-lot production, and is working to mitigate these risks by strengthening its competitiveness.」

「Under these conditions, in Japan, orders in the Group's assembly-related business recovered gradually for industrial and communications equipment, but in the printed circuit board business, production adjustments caused by semiconductor and component shortages continued to affect the core automotive-related sector, resulting in weak orders and domestic revenue falling below the same quarter of the previous year. Overseas, sales from new customers and new products, mainly in the automotive-related sector, contributed, while orders in the office equipment sector remained strong in China and Indonesia. Vietnam, which began operations in the previous fiscal year, also continued to perform well, with sales increasing substantially, mainly in the automotive-related sector.」

「In Japan, orders in the Group's printed circuit board business remained weak as production adjustments caused by semiconductor and component shortages continued to affect the core automotive-related sector. Overseas, although China was affected by lockdowns, sales from new customers and new products, mainly in the automotive-related sector, contributed, and orders in the office equipment sector remained strong in China and Indonesia. Vietnam, which began operations in the previous fiscal year, also continued to perform well, increasing sales mainly in the automotive-related sector.」

「In Japan, orders in the home appliance sector, including LED lighting, remained strong in the printed circuit board business, but the core automotive-related sector was affected by production adjustments caused by semiconductor and component shortages, and fell below the same quarter of the previous year. Overseas, orders in China and Indonesia remained strong, supported by recovering demand, the development of new customers, mainly in the automotive-related sector, and new products.」

「During the first 9 months of the fiscal year, the printed circuit board industry in which the Company operates remained subject to uncertainty about the outlook due to concerns over a resurgence of COVID-19 infections, semiconductor shortages and higher prices for key materials. Nevertheless, domestic and overseas demand recovered and conditions remained strong.」

「During the 2nd quarter cumulative consolidated period, the printed wiring board industry to which the Company belongs faced an uncertain outlook due to concerns over a resurgence of COVID-19, semiconductor shortages and rising prices for primary materials and other items. However, demand recovered both in Japan and overseas, and business performed strongly.」

「During the first quarter of the fiscal year, the printed circuit board industry in which the Company operates remained subject to uncertainty about the outlook, including the prolonged effects of the spread of COVID-19. Nevertheless, demand continued to recover in Japan and overseas, and conditions remained firm.」

「To address these conditions, the Group established a factory in Vietnam, which offers greater competitiveness in Asia, and is strengthening its production structure. In Japan, it is expanding its capabilities for high-density products, prototypes and small-lot production in an effort to mitigate these risks.」

「During the first 9 months of the fiscal year, demand in Japan and overseas began recovering gradually from the third quarter in the printed circuit board industry in which the Company operates, but the prolonged effects of the COVID-19 pandemic meant that uncertainty about the outlook persisted.」

「During the first half of the fiscal year, the printed circuit board industry in which the Company operates continued to be affected by the spread of COVID-19 both domestically and overseas. Demand remained sluggish due to stagnant economic activity, and uncertainty about the outlook persisted.」

「During the first quarter of the current consolidated cumulative period, the printed wiring board industry in which we operate was affected by the spread of COVID-19 both in Japan and overseas. Demand stagnated amid a sharp deterioration in economic conditions, and the outlook remained uncertain.」

「To address these conditions, the Group established a factory in Vietnam, which offers greater competitiveness in Asia, and is strengthening its production structure. In Japan, it is expanding its capabilities for high-density products, prototypes and small-lot production in an effort to mitigate these risks.」

「During the first 9 months of the fiscal year, domestic demand in the printed circuit board industry in which the Company operates remained sluggish, mainly because the decline in exports of electronic components and other products to China and ASEAN persisted. Overseas, uncertainty over trade friction between the United States and China, together with weak exports, led economies in emerging Asian countries, including China, to continue slowing, and demand remained stagnant.」

「During the first half of the fiscal year, the printed circuit board industry in which the Company operates saw sluggish domestic demand, mainly due to declining exports of electronic components and other products to China and ASEAN. Overseas, economies in emerging Asian countries, including China, continued to slow as trade friction between the United States and China intensified, while exports remained at low levels, causing demand to stagnate.」

「During the first quarter of the current consolidated cumulative period, conditions in the printed wiring board industry in which we operate remained firm in Japan, particularly in automotive-related fields, but demand declined against a backdrop of lower exports to China and ASEAN and persistently high inventories. Overseas, economic slowdown continued in emerging Asian countries, including China, amid intensifying US-China trade friction, while exports remained weak and demand was sluggish.」

「Overseas, as trade friction between the United States and China intensified, export growth in China and emerging Asian economies slowed from the second half of the period, and the effects spread to the real economy, heightening uncertainty about the economic outlook.」

「Overseas, moderate growth centered on domestic demand continued in emerging Asian economies, but signs of a slowdown in China's economic recovery emerged. Concerns over an escalation in global trade friction and sharp fluctuations in foreign exchange and financial markets also heightened uncertainty about the outlook.」

「During the first half of the fiscal year, the printed circuit board industry in which the Company operates remained firm domestically, as demand increased for automotive-related products, energy-saving products, high-value-added home appliances and video-related products amid a gradual economic recovery. Overseas, although concerns grew over an escalation in global trade friction, the economy continued to grow steadily, supported by economic measures such as China's infrastructure investment promotion policies and solid domestic demand in emerging Asian economies, and demand remained firm.」

「During the first quarter of the fiscal year, the printed circuit board industry in which the Company operates saw domestic demand exceed the same quarter of the previous year, as the economy continued its gradual recovery and demand remained firm for automotive-related products, energy-saving and high-value-added home appliances, and video-related products. Overseas, demand remained firm as China and emerging Asian economies continued to expand steadily, supported by solid domestic demand and increased exports.」

「During the first 9 months of the fiscal year, the printed circuit board industry in which the Company operates saw domestic demand exceed the same period of the previous year, as the economic recovery continued and demand remained firm for automotive-related products, energy-saving and high-value-added home appliances, and video-related products. Overseas, demand remained firm as China and emerging Asian economies continued to achieve stable growth, supported by resilient domestic demand and strong exports.」

「During the cumulative second quarter of the current consolidated fiscal year, conditions in the printed wiring board industry to which the Company belongs exceeded the previous year’s quarter in Japan as the economy continued to recover, demand for automotive-related products, energy-saving and high-value-added home appliances remained strong, and the communications equipment sector grew. Overseas, demand remained firm as domestic demand in China and emerging Asian economies remained resilient and their economies continued to recover.」

「In Japan, demand for automotive-related products and home appliances remained strong as the economy continued to recover, and the communications equipment sector also grew. As a result, all sectors exceeded the previous year’s quarter. Overseas, demand remained resilient as the economies of China and emerging Asian countries continued to recover.」

「In Japan, demand for automotive-related products and home appliances remained strong from the latter half of the period as the economy continued to recover, and the previously sluggish communications equipment sector also grew gradually. As a result, demand remained firm. Overseas, demand also remained resilient as the automotive-related sector continued to grow in China and emerging Asian economies, and conditions were generally firm.」

「During the cumulative third quarter of the current consolidated fiscal year, conditions in the printed wiring board industry to which the Company belongs improved in some areas in Japan, as demand for automotive-related products and high-value-added home appliances remained strong from the latter half of the period and the previously sluggish communications equipment sector showed a stronger recovery trend. Overseas, concerns remained about downside risks to China's economy and the outlook remained uncertain, but the automotive-related sector continued to grow in emerging Asian economies and elsewhere, keeping demand firm.」

「In Japan, demand remained firm, mainly in automotive-related and home appliance sectors, and signs of recovery also emerged in the previously sluggish communications equipment sector. However, demand overall remained sluggish because these developments did not drive the market. Overseas, growth continued in the automotive-related sector in emerging Asian economies and elsewhere, but China's economic growth continued to slow, leaving the outlook uncertain.」

「In Japan, the communications equipment sector, which had driven growth through the previous year, clearly slowed from the beginning of the year as the market matured. Although demand was generally sluggish, signs of recovery strengthened from the latter half of the first quarter, particularly in home appliances and automotive-related sectors.」

「Demand for the Group's main products, single-sided and double-sided printed wiring boards, continues to shift toward Asia, including China. In Japan, although demand for mass-produced products is gradually declining, demand for high-density products, prototypes and small-lot production is expected to strengthen further.」