Overseas Expansion and Product Development in Chemicals, New Equipment and Optimal-Site Production

「In the surface treatment chemicals division, investment related to package substrates became more active amid rapid growth in the generative AI market, leading to progress including the acquisition of new customers in China, and chemicals for passive components performed strongly. In addition, demand for chemicals for printed circuit boards recovered.」

「In the surface treatment chemicals division, sales and profit both performed strongly, supported by the acquisition of new customers for chemicals used with passive components in China and across Asia, as well as a recovery in demand for chemicals used with printed circuit boards.」

「In the surface treatment equipment division, we expanded by meeting strong customer demand following the plant expansion. In addition to expanding the plant, our pursuit of shorter delivery times substantially strengthened our order-fulfillment capacity.」

「With the support of a leading domestic semiconductor equipment manufacturer, we are strengthening proposals for total solutions combining chemicals and equipment to recover sales. We are also continuing development in anticipation of 6G, the next-generation communications standard for which demand is rising in the printed-circuit-board, electronic components and semiconductor markets, while advancing new development to meet needs in automotive applications, where conditions are changing substantially. In the surface treatment equipment division, sales remained strong because the number of orders increased following the expansion of the plant.」

「However, to recover sales, we are advancing proposals for total solutions combining chemicals and equipment with the support of a leading domestic semiconductor equipment manufacturer. We are also advancing development to meet new needs in automotive applications, where conditions are changing substantially. In the surface treatment equipment division, 東京化工機株式会社 performed strongly, with sales exceeding the same period of the previous year because the number of orders increased following the expansion of its plant.」

「However, a Japanese company decided to adopt the connector chemicals for smartphones on which we had worked for many years, and mass production began in July 2023.」

「Meanwhile, we pursued the pass-through of increases in raw-material and energy costs, reviewed manufacturing costs and SG&A expenses, including personnel expenses, and succeeded in substantially lowering the sales break-even point.」

「In the surface treatment equipment division, we focused on improving operational efficiency and knowledge and maintaining quality to shorten delivery times, and advanced measures to provide higher levels of technology and better products. We also pursued cost reductions, and as a result performance remained firm.」

「As a result, during the consolidated fiscal year under review we continued to advance operational improvement activities. Measures linked to “customer satisfaction,” the easing of restrictions related to COVID-19, and ingenuity in advancing sales activities and on-site construction plans enabled us to finish the year substantially above our sales, operating profit and ordinary profit targets.」

「Completion of the second phase of the manufacturing building expansion improved production capacity, and we worked to further strengthen our ability to meet demand.」

「In the surface treatment chemicals business, we continued to focus on expanding sales of core process chemicals for semiconductors, chemicals for fine-wiring formation and chemicals for passive components. In the surface treatment equipment business, we focused on improving knowledge and maintaining quality to achieve the targets of “profit planning,” “shorter delivery times” and “safe operations,” and advanced initiatives to provide society with higher levels of technology and better products.」

「In the surface treatment equipment business, expansion of the manufacturing building was completed, improving production capacity.」

「In the surface treatment equipment business, expansion of the manufacturing building was completed, improving manufacturing capacity. At the same time as full-scale operations began, we launched manufacturing initiatives focused on quality assurance, preparing approved drawings and reducing costs.」

「Despite the spread of COVID-19, the surface treatment chemicals business actively communicated with customers using ICT and focused on selling its core products in Japan and overseas, including chemicals for fine wiring formation, semiconductor electrode formation and passive components. In the surface treatment equipment business, under the slogan “Shorter delivery times change the company,” we returned to our roots as an equipment manufacturer under the new structure introduced in February 2021 and began activities focused on manufacturing.」

「In the surface treatment equipment business, we further strengthened the profit-improvement activities pursued to date, while working to improve operating efficiency and shorten delivery times by transferring the technologies developed over the years. We also worked on developing new equipment to respond to the continuing evolution of fine-circuit formation and miniaturization, weight reduction and reduced thickness.」

「As the spread of COVID-19 continued for an extended period, the surface treatment equipment business promoted operational efficiency through rigorous optimal-site production, despite suspended sales activities and delivery postponements at customers' request. In the surface treatment chemicals business, we strengthened sales expansion of etchants and dry-film strippers for fine-circuit formation on printed wiring boards and copper sulfate plating additives in regions where infections were limited or recovery was rapid.」

「Against this backdrop, in the surface treatment chemicals business we strengthened sales activities for seed etchants and copper sulfate plating additives for fine-circuit formation on printed wiring boards in regions where the impact of COVID-19 was limited or recovery was rapid. In the surface treatment equipment business, we continued profit-improvement activities, including optimal-site production within the group and shorter delivery times through equipment standardization, and worked on technology-transfer activities to develop engineers.」

「In the chemicals business, amid the accelerating commercialization of high-speed, high-capacity mobile communications systems, we advanced equipment development to meet customer needs, including the increasing density of high-performance package substrates. In surface treatment chemicals, we strengthened sales of seed-layer etching chemicals and copper sulfate plating additives for fine wiring in printed wiring boards, and UBM plating chemicals for semiconductors.」

「In the surface treatment chemicals business, we introduced new copper plating additives for printed wiring boards and expanded seed-layer etching chemicals for semiconductors in Japan and overseas. We also continued activities to promote the adoption of UBM plating chemicals for semiconductors, a growth market in Japan. In addition, we worked to promote newly added electroless copper plating chemicals for horizontal transport.」

「In the surface treatment chemicals business, we continued expanding sales of copper sulfate plating additives for via filling and dry-film strippers for fine wiring in the printed-wiring-board market, and conducted promotional activities in Japan and overseas for bump-forming chemicals and seed-layer etching chemicals in the semiconductor market. As a result, overseas sales of copper sulfate plating additives grew, while the semiconductor business remained firm in Japan and overseas. In the surface treatment equipment business, we pursued equipment standardization to shorten delivery times and optimal-site production to reduce costs, with cost reduction and shorter delivery times as company-wide objectives. As planned capital investment demand was deferred, we also advanced sales activities to develop new sources of demand.」

「In the surface treatment chemicals business, for the printed-wiring-board segment we continued to focus on promoting copper sulfate plating additives for via filling and dry-film strippers, while for the semiconductor segment we continued expanding sales of bump-forming plating chemicals and seed-layer etchants. We also added zinc alloy plating to the lineup, targeting the automotive market.」

「In the surface treatment chemicals business, we introduced new copper plating additives for printed wiring boards and expanded seed-layer etching chemicals for semiconductors, mainly overseas. In Japan, we continued activities to win new customers for UBM plating chemicals for semiconductors, a growth market. We also worked to promote newly added electroless copper plating chemicals for horizontal transport and zinc plating additives. As a result, sales of existing products for printed wiring boards and electronic components declined because overseas customers reduced operating rates amid deteriorating market conditions, while delays in winning new customers also weighed on performance, which remained sluggish. In semiconductors, seed-layer etching chemicals and UBM plating chemicals performed steadily in Japan and overseas. In the surface treatment equipment business, while preserving our strength in customization, we promoted standardization of basic configurations based on know-how developed over half a century and worked to improve the profitability of individual made-to-order projects. In technology development, we also worked to improve equipment for automotive boards, where production increases are expected. As a result, the profitability of individual orders improved substantially year on year, and performance remained strong.」

「Against this backdrop, in the surface treatment chemicals business we promoted sales expansion overseas of new copper plating additives for printed wiring boards and dry-film strippers for fine circuits, as well as products acquired from Hitachi Chemical Corporation. For electronic components, we promoted sales of plating chemicals for passive components, an area of strength, and for semiconductors, we promoted sales of electroless plating chemicals for wafer-bump formation and seed-layer etching chemicals. As a result, new overseas sales of copper plating additives grew in the printed-wiring-board segment, while products from the acquired business performed steadily in Japan. Sales of chemicals for electronic components substantially exceeded plan because of increased demand for chemicals for passive components, resulting in strong overall performance in the surface treatment chemicals business.」

「In the surface treatment chemicals business, we advanced sales expansion of new copper sulfate plating additives for printed wiring boards, as well as the transfer and expanded sales of various process chemicals acquired from Hitachi Chemical Corporation. In semiconductor-related chemicals, we actively pursued overseas expansion of UBM-forming plating chemicals for bumps and seed-layer etching chemicals.」

「In the surface treatment chemicals business, group company メルテックス株式会社 plans to acquire Hitachi Chemical Corporation's chemicals business for printed wiring boards in the third quarter as a new business initiative. The acquisition will fill gaps in the printed-wiring-board chemicals lineup, and preparations have begun to develop new markets.」

「As one measure toward achieving our vision, we have agreed to acquire Hitachi Chemical's chemicals business for printed wiring boards. The acquisition will further expand our product lineup of plating chemicals and surface treatment agents for wiring boards and semiconductor packages. This will enable the chemicals business to further optimize peripheral materials and various process products, strengthen its capabilities as a total-solutions provider for surface treatment chemicals, and pursue sales growth by leveraging its broad sales network in Japan, South Korea, mainland China, Taiwan, Hong Kong and Southeast Asia.」

「The new etching equipment under development and the new developing equipment for fine-circuit formation with line widths of 10μm or less have been completed, establishing the framework for expanded sales from the next fiscal year.」

「In the surface treatment chemicals business, we sought to strengthen adoption of new printed-wiring-board products by major manufacturers, particularly in automotive components, and focused on expanding the market share of products for electronic and semiconductor components in existing markets. Overseas, we strengthened our ability to respond to demand, including through cost reductions using manufacturing alliances. As a result, adoption of new printed-wiring-board products progressed and began contributing to higher sales. The new etching and developing equipment under development also progressed toward completion.」

「In the surface treatment chemicals business, we focused on selling new printed-wiring-board products and semiconductor-related products and on establishing a track record with automotive components, while strengthening overseas support to expand overseas manufacturing bases and pursuing strategic sales expansion. In the surface treatment equipment business, we have been differentiating ourselves from competitors by improving the performance of existing equipment, and improvements to fine-circuit-formation etching equipment are progressing steadily toward completion. As a new initiative, we have begun developing developing equipment for L/S=5μm/5μm, as required for next-generation package substrates.」

「In the surface treatment chemicals business, we focused on selling new products for printed wiring boards and electronic components and on establishing a track record in automotive applications, while clarifying our overseas manufacturing bases, expanding overseas support personnel and pursuing strategic sales expansion. In the surface treatment equipment business, we secured sales channels in the Chinese market, which we had identified as a promising new market, and conducted sales activities with the aim of making it a third pillar alongside Japan and South Korea. Technically, we also focused on establishing further fine-circuit formation technology and thick-copper etching technology for automotive boards, which have become increasingly common in recent years. As a result, the company's brand strength in the market clearly improved after stationing design engineers in China, but business remained sluggish amid the slowdown in China's overall economy.」

「In the surface treatment chemicals business, in addition to expanding sales of newly developed high-performance copper sulfate plating additives for printed wiring boards, we focused on further product development for chemicals used in electronic components and automotive components. As a result, we achieved certain results, including new adoption at major domestic manufacturers, but business conditions remained extremely difficult, mainly overseas.」

「In the surface treatment chemicals business, we focused on expanding overseas operations and on further product development for chemicals used in electronic components and automotive components. We also strengthened optimal-site production through group-wide activities to compete with global price competition, while working to improve production efficiency and reduce manufacturing costs. As a result, we secured new adoption at major domestic manufacturers, among other achievements, but business conditions remained extremely difficult because adoption of new products was delayed. In the surface treatment equipment business, we advanced development of new equipment effective for the next generation of fine-circuit formation required by customers in order to differentiate ourselves from competitors, and focused on expanding sales channels with value-added equipment and recovering prices that had declined. As a result, transactions with local Chinese companies remained firm, but overall business was sluggish because of weak capital investment by domestic companies.」

「In the surface treatment chemicals business, we focused on expanding overseas operations to grow the business, as well as on further product development for chemicals used in electronic components and automotive components. In the surface treatment equipment business, we advanced development of new equipment effective for the next generation of fine-circuit formation required by customers in order to differentiate ourselves from competitors, and focused on expanding sales channels with value-added equipment and recovering prices that had declined. We also strengthened optimal-site production through group-wide activities to compete with global price competition, while working to improve production efficiency and reduce manufacturing costs.」