Supply-Demand Fluctuations and Technological Change in the Semiconductor Market

「In the semiconductor industry, a major customer base for our Group, demand related to AI data centers rose further against a backdrop of strong investment aimed at implementing and disseminating agentic AI. Under these market conditions, high demand for cutting-edge semiconductors such as CPUs, GPUs and HBM (high-bandwidth memory) drove market growth.」

「In the semiconductor industry, strong demand continued for cutting-edge semiconductors such as GPUs and HBM (high-bandwidth memory), driven by increased investment in AI, and device manufacturers became more aggressive in their capital investment.」

「In the semiconductor industry, a major customer base for our Group, demand for semiconductors used in smartphones and PCs remained soft, while AI-related semiconductor demand, including AI servers for data centers and HBM (high-bandwidth memory), drove the market. Demand for power semiconductor-related products remained weak against a backdrop of stagnation in the EV (electric vehicle) market.」

「In the semiconductor industry, a major customer base for our Group, recovery in end demand centered on smartphones and PCs remained slow, and some investment plans by device manufacturers, including for cutting-edge semiconductors, were reviewed. In specific fields, investment related to generative AI was active, while investment related to power semiconductors remained weak.」

「In the semiconductor industry, a major customer base for our Group, solid investment continued in HBM (high-bandwidth memory) for generative AI and power semiconductors against a backdrop of progress toward decarbonization, including the global shift toward EVs (electric vehicles). Investment to expand semiconductor manufacturing capacity using cutting-edge EUV (extreme ultraviolet) lithography also showed signs of recovery from the second half of the fiscal year.」

「In the semiconductor industry, a major customer base for our Group, device manufacturers showed some recovery in investment. Investment remained solid in HBM (high-bandwidth memory) related to generative AI and power semiconductors against a backdrop of the global shift toward EVs (electric vehicles) and progress toward decarbonization. Signs of recovery were also seen in investment to expand semiconductor manufacturing capacity using cutting-edge EUV (extreme ultraviolet) lithography. Over the medium to long term, the semiconductor manufacturing equipment market is expected to grow further as the semiconductor market expands.」

「In the semiconductor industry, a major customer base for our Group, signs of a bottom in end demand for smartphones and PCs emerged while inventory adjustments continued throughout the supply chain. However, most semiconductor device manufacturers remained cautious about investment, and investment related to expanding semiconductor manufacturing capacity using cutting-edge EUV (extreme ultraviolet) lithography and developing next-generation manufacturing processes also remained at a certain level. Meanwhile, the semiconductor market is expected to expand over the medium to long term across various applications, including generative AI and automotive applications, and government-led plans to build and expand semiconductor factories worldwide to address geopolitical risks are progressing. Semiconductor devices are also required to deliver higher performance and lower power consumption through continuous miniaturization, and the semiconductor manufacturing equipment market is expected to continue growing over the medium to long term.」

「In the semiconductor industry, a major customer base for our Group, capital investment adjustments continued throughout the supply chain as end demand centered on smartphones and PCs reached a plateau. Investment to expand semiconductor manufacturing capacity using cutting-edge EUV (extreme ultraviolet) lithography and to develop next-generation manufacturing processes continued at a certain level, but many memory and logic device manufacturers remained cautious about capital investment. In contrast, investment remained solid in specific fields, including power semiconductors aimed at achieving a decarbonized society and HBM (high-bandwidth memory) for generative AI.」

「In the semiconductor industry, a major customer base for our Group, inventory adjustments spread rapidly throughout the supply chain following a reactionary decline in demand for semiconductors used in smartphones and PCs after their sharp expansion during the COVID-19 pandemic. Investment in expanding semiconductor manufacturing capacity using cutting-edge EUV (extreme ultraviolet) lithography and developing next-generation manufacturing processes continued at a certain level, but memory device manufacturers implemented substantial investment restraint, while logic device manufacturers also showed notable reviews and postponements of capital investment.」

「In the semiconductor industry, a major customer base for our Group, demand for semiconductors used in smartphones and PCs, which had expanded during the COVID-19 pandemic, remained weak, and production and inventory adjustments spread throughout the supply chain. Memory device manufacturers reduced capital investment, while logic device manufacturers maintained a certain level of investment, including to expand semiconductor manufacturing capacity using cutting-edge EUV (extreme ultraviolet) lithography, but continued postponing existing investment plans in the short term. Meanwhile, plans to build and expand semiconductor factories worldwide are progressing to address expected growth in semiconductor demand and increasing geopolitical risks, and the semiconductor-related equipment market is expected to continue growing over the medium to long term.」

「In the semiconductor industry, a major customer base for our Group, demand for semiconductors used in smartphones and PCs, which had expanded during the COVID-19 pandemic, declined sharply, and a broad move to reduce capital investment spread, led by memory device manufacturers. Logic device manufacturers also maintained a high level of investment, including to expand semiconductor manufacturing capacity using cutting-edge EUV (extreme ultraviolet) lithography, but some postponement of existing investment plans was seen in the short term. Meanwhile, plans to build and expand semiconductor factories worldwide have been announced to address expected growth in semiconductor demand and increasing geopolitical risks, and the semiconductor-related equipment market is expected to continue growing over the medium to long term.」

「In the semiconductor industry, a major customer base for our Group, high demand continued for semiconductors used in data centers, driven by the spread of cloud services required for remote work and online meetings, as well as for communications equipment including 5G smartphones, despite an uncertain economic outlook. Demand for semiconductors is expected to weaken in some areas, but demand for cutting-edge semiconductors remains resilient. Logic and memory device manufacturers continued investing to expand semiconductor manufacturing capacity using EUV (extreme ultraviolet) lithography and in next-generation manufacturing processes incorporating further miniaturization.」

「If customers freeze or postpone capital investment because of an unexpected and rapid contraction in demand, this could affect the performance of our Group. Conversely, if they accelerate capital investment in response to an unexpected and rapid increase in demand, product supply may not be timely, potentially resulting in lost opportunities.」

「During the nine-month period of the third quarter of the current fiscal year, the global economy remained uncertain as the resurgence of infections from COVID-19 variants weighed on conditions, while Russia's invasion of Ukraine drove up resource and food prices and disrupted supply chains, further increasing global inflationary pressure. Monetary policy and foreign exchange markets also remained unstable, and uncertainty about the outlook continued amid a global semiconductor shortage.」

「In the semiconductor industry, a major customer base for our Group, demand for semiconductors used in communications equipment, including 5G smartphones, as well as PCs and data centers, remained solid as cloud services such as remote work and online meetings became more widespread. Demand was particularly strong for cutting-edge semiconductors, and logic and memory device manufacturers aggressively invested both to expand capacity for existing semiconductor manufacturing processes using EUV (extreme ultraviolet) lithography and in next-generation manufacturing processes incorporating further miniaturization.」

「In the semiconductor industry, a major customer base for our Group, demand for cutting-edge semiconductors used in communications equipment, including 5G smartphones, as well as PCs and data centers, driven by the spread of remote work and online meetings, remained solid. To meet this increased demand, logic and memory device manufacturers continued aggressive investment and accelerated the introduction of semiconductor manufacturing processes using cutting-edge EUV (extreme ultraviolet) lithography.」

「In the semiconductor industry, a major customer base for our Group, concerns about geopolitical risk from rising tensions between the United States and China and semiconductor shortages increased. Governments announced policies aimed at strengthening technological capabilities and reviewing supply chains, and semiconductor device manufacturers announced upward revisions to their investment plans.」

「In the semiconductor industry, a major customer base for our Group, concerns about geopolitical risk arising from dependence on specific regions and manufacturers for semiconductor production have increased amid intensifying tensions between the United States and China and shortages of automotive semiconductors. Governments announced policies aimed at rebuilding supply chains over the medium to long term, along with investment plans by semiconductor device manufacturers, to ensure a stable supply of semiconductors whose economic and military importance is increasing in countries worldwide. In the near term, demand remained solid for cutting-edge semiconductors used in communications equipment, including 5G smartphones, as well as PCs and data centers, driven by the spread of remote work and online meetings. Logic and memory device manufacturers continued investing to expand capacity for semiconductor manufacturing processes using cutting-edge EUV (extreme ultraviolet) lithography, while mask blank manufacturers also invested in EUV-related fields in anticipation of medium- to long-term demand growth. The semiconductor-related equipment market is expected to expand going forward.」

「In the semiconductor industry, a major customer base for our Group, demand for semiconductors used in communications equipment, including 5G smartphones, as well as PCs and data centers, remained solid as remote work and online meetings became more widespread, despite initial concerns about the negative impact of the novel coronavirus. Demand was particularly strong for high-performance semiconductors incorporating further miniaturization, and logic device manufacturers aggressively invested in capacity expansion for semiconductor manufacturing processes using cutting-edge EUV (extreme ultraviolet) lithography. Mask blank manufacturers are also investing in EUV-related fields in anticipation of medium- to long-term demand growth.」

「In the semiconductor industry, a major customer base for our Group, demand for consumer products such as smartphones and for automotive equipment remained weak as COVID-19 spread, while demand for data centers remained solid in response to the growth of remote work, e-commerce and gaming and the resulting increase in data traffic. In the cutting-edge field of logic device manufacturers, capacity expansion for semiconductor manufacturing processes using next-generation EUV (extreme ultraviolet) lithography continued, and major device manufacturers and mask blank manufacturers continued to invest in EUV-related fields.」

「In the semiconductor industry, a major customer base for our Group, demand for consumer products such as smartphones and for automotive equipment slowed as COVID-19 spread, while demand for data centers expanded in response to the growth of remote work, e-commerce and gaming and the resulting increase in data traffic.」

「In the semiconductor industry, a major customer base for our Group, demand for consumer products such as smartphones was feared to decline as COVID-19 spread, while demand for data centers was expected to expand in response to the growth of remote work, e-commerce and gaming. Memory used for data storage was showing signs of stabilizing prices against a backdrop of production adjustments and rising data center demand, and capital investment by memory manufacturers was expected to recover. In the cutting-edge field of logic device manufacturers, mass production of semiconductors using next-generation EUV (extreme ultraviolet) lithography was approaching, and major device manufacturers and mask blank manufacturers continued aggressive investment in EUV-related fields.」

「In the semiconductor industry, a major customer base for our Group, demand for PCs and data centers weakened because of factors including CPU (central processing unit) shortages, while smartphone shipments fell year on year for the second consecutive year. Memory used for data storage underwent production adjustments, prices continued to decline over an extended period, and memory manufacturers continued to restrain investment. However, in the cutting-edge field of logic device manufacturers, semiconductor manufacturing using next-generation EUV (extreme ultraviolet) lithography is approaching the mass-production stage, and major device manufacturers and mask blank manufacturers continue to invest more aggressively in EUV-related fields.」

「In the semiconductor industry, a major customer base for our Group, memory prices showed signs of bottoming out, but investment by memory manufacturers had not yet recovered. In contrast, capital investment for advanced lines incorporating further miniaturization by logic manufacturers remained solid, and major foundries in particular continued aggressive investment to support next-generation EUV (extreme ultraviolet) lithography.」

「In the semiconductor industry, a major customer base for our Group, memory manufacturers restrained capital investment, while logic manufacturers invested in advanced lines incorporating further miniaturization. Major foundries began investment to support next-generation EUV lithography.」

「In the semiconductor industry, a major customer base for our Group, memory manufacturers restrained capital investment as memory device prices continued to fall. In contrast, in the cutting-edge logic device field, major foundries began capital investment aimed at commercializing next-generation EUV (extreme ultraviolet) lithography, and robust EUV-related investment has continued.」

「In the semiconductor industry, a major customer base for our Group, memory manufacturers reduced and postponed capital investment amid falling memory device prices. The outlook for planned semiconductor manufacturers' capital investment in China has also become uncertain, partly because of trade friction between the United States and China. However, in the cutting-edge semiconductor field, the practical application of next-generation EUV (extreme ultraviolet) lithography is approaching, and major device manufacturers and mask blank manufacturers have begun aggressive investment related to EUV lithography.」

「In the semiconductor industry, a major customer base for our Group, NAND prices fell sharply and DRAM prices also began to trend downward, leading some memory manufacturers to postpone capital investment. In contrast, logic manufacturers began to resume investment, and a recovery is expected toward 2019.」

「In the semiconductor industry, a major customer base for our Group, the semiconductor and semiconductor manufacturing equipment markets continued to expand steadily as demand broadened with technological innovations such as HPC (high-performance computing) and IoT (the connection of various devices to the internet).」

「In the semiconductor industry, a major customer base for our Group, NAND prices returned to their usual gradual downward trend, while DRAM prices continued to rise, expanding the memory market overall. Other semiconductor markets also continued to grow, with aggressive capital investment taking place.」

「In the semiconductor industry, a major customer base for our Group, capital investment for memory devices, where supply and demand were particularly tight, was strong. Chinese-owned and foreign-owned device manufacturers are also planning substantial factory investments in China.」

「In the semiconductor industry, the group’s main end market, memory manufacturers increased capital investment because demand exceeded supply, particularly for memory devices known as DRAM and 3D-NAND. Capital investment by major Taiwanese foundries had run its course, but other foundries and Chinese device manufacturers made investments, resulting in generally favorable market conditions.」

「In the semiconductor industry, the group’s main end market, memory manufacturers and foundries made aggressive capital investments due to the progress of IoT, meaning various things being connected to the internet, the development of AI, meaning artificial intelligence, and growing demand for data servers, among other factors.」

「In the semiconductor industry, the group’s main end market, advanced capital investment by major foundries, including in 10nm nodes, had reached a plateau, but investment in 3D-NAND by memory manufacturers was brisk, keeping semiconductor capital investment overall at a high level.」

「In the semiconductor industry, the group’s main end market, prices for both DRAM and NAND memory increased, and investment in 3D-NAND in particular became more active. Major foundries also continued to maintain high levels of advanced capital investment for miniaturization, including 10nm nodes.」

「In the semiconductor industry, the group’s main end market, memory supply-demand conditions became tighter and spot prices began to rise. In addition, major foundries performed well, leading to expectations of increased capital investment going forward.」

「This market is characterized by rapid technological innovation and can grow significantly as technology changes, but its size may also temporarily contract if the supply-demand balance deteriorates.」