Shortages of Semiconductors and Electronic and Electrical Components and Surging Raw Material Prices
First written in FY2022-Q3. 4 of 10 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Nippon Avionics moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 99 of 155 companies on the "Worse" side.
46 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The economic environment during the current consolidated fiscal year saw a gradual recovery in production and capital investment in the manufacturing sector. However, the yen remained weak, while soaring material costs and difficulty securing resources such as rare metals, together with the impact of conditions in the Middle East toward the end of the fiscal year, made procurement of crude oil and petroleum products a major concern.」
Rising materials costs, difficulty securing resources such as rare metals, and concerns over procuring crude oil and petroleum products due to the situation in the Middle East were identified, increasing supply chain and cost risks. - 2026-05-12WorsenedRevision of earnings forecasts
「During the fiscal year, the economic environment saw a gradual recovery in production and capital investment in the manufacturing sector. However, the yen remained weak, material costs rose, and securing resources such as rare metals became more difficult. In addition, the impact of the situation in the Middle East toward the end of the fiscal year made the procurement of crude oil and petroleum products a major concern.」
Higher material costs, difficulty securing resources such as rare metals and concerns over procuring crude oil and petroleum products were newly specified, indicating increased supply-chain and cost risks. - FY2024RestatedAnnual report
「Uncertainty about the outlook continues as a result of higher energy and raw material prices and supply concerns caused by the impact of unstable global conditions, including the prolonged situation in Ukraine, stagnation in overseas economies centered on China, and heightened tensions in the Middle East.」
The company continued to disclose supply-chain and cost risks, including rising energy and raw material prices, supply concerns and stagnation in overseas economies. - FY2024-Q3RestatedAnnual report
「Uncertainty about the outlook continues as a result of higher energy and raw material prices and supply concerns caused by the impact of unstable global conditions, including the prolonged situation in Ukraine, stagnation in overseas economies centered on China, and heightened tensions in the Middle East.」
Uncertainty on the supply-chain and cost fronts has continued, including rising energy and raw material prices, supply concerns and stagnation in overseas economies. - FY2023RestatedAnnual report
「However, soaring prices of components, raw materials and other items beyond assumptions, fluctuations in procurement availability caused by natural disasters or deteriorating international conditions, quality defects, logistics disruptions and infrastructure restrictions could result in delivery and lead-time delays, lost business opportunities and higher cost of sales, potentially affecting our corporate group's business results, financial condition and reputation.」
The company continued to disclose supply-chain risks related to component and raw material prices, procurement availability, quality, logistics and infrastructure restrictions. It also continued measures including securing necessary inventory, procuring from multiple suppliers and sharing information with suppliers. - FY2023-Q3RestatedAnnual report
「However, difficult conditions continue as a result of the prolonged situation in Ukraine, sharp exchange-rate fluctuations amid continued global monetary tightening, the impact on the Chinese economy of the country's COVID-19 measures, rising raw material prices and continued uncertainty over supply conditions.」
It was explained that rising raw material prices and uncertainty over supply conditions have continued. This disclosure does not indicate any new deterioration related to supply-chain risks, including shortages of semiconductors and electronic and electrical components. - FY2023-Q2WorsenedAnnual report
「The business environment surrounding our corporate group was such that, although private-sector capital investment showed signs of recovery, the recovery in capital investment appetite stalled as automakers reduced production due to weaker smartphone demand and the semiconductor shortage, leaving demand related to electronic equipment in an uncertain situation.」
It was explained that semiconductor shortages were linked to reduced production by automakers and a stalled recovery in their appetite for capital investment. The impact of supply shortages and supply-chain-related risks on the business environment has continued. - FY2023-Q1MaterialisedAnnual report
「In Electronic Equipment, sales of Bonding Equipment declined because sales recognition was postponed as a result of disruptions in international logistics. Sales of Sensing Solutions also declined because orders for existing production equipment applications decreased as customers reviewed capital expenditure plans for decarbonisation measures in the steel and other industries.」
Supply and logistics risks materialized as an actual extension of the sales schedule for joining equipment. The impact of supply risks, including semiconductor shortages and supply-chain disruptions, appeared in business performance. - FY2022WorsenedAnnual report
「To ensure stable procurement and quality of components, raw materials and other items for our group products, our corporate group works to secure necessary inventory levels, procure from multiple suppliers and share information closely with suppliers, while undertaking quality control of components and raw materials. However, soaring prices of components, raw materials and other items beyond assumptions, fluctuations in procurement availability caused by natural disasters or deteriorating international conditions, quality defects, logistics disruptions and infrastructure restrictions could result in delivery and lead-time delays, lost business opportunities and higher cost of sales, potentially affecting our corporate group's business results, financial condition and reputation.」
Regarding shortages of semiconductors and electronic and electrical components and soaring raw material prices, the company advanced stable supply by securing components, while the issue developed and expanded into a specific supply-chain risk including price increases, fluctuations in procurement availability, logistics disruptions and delivery delays. - FY2022-Q3First statedAnnual report
「Concern over the rapid spread of the Omicron variant of COVID-19, in addition to the impact of semiconductor shortages on various industries and soaring raw material prices, has caused uncertainty about the outlook to rise again.」
The explanation of the business environment for the third quarter identified for the first time the impact of semiconductor shortages on various industries and soaring raw material prices as separate supply and cost risks. Separately, the company explained that it was working to secure components amid a global shortage of semiconductors and electronic and electrical components.