Semiconductor and Electronic Component Markets and Economic Trends

「Because of concerns over the procurement of certain products handled by the company, among other factors, we have decided to maintain the forecast figures announced on 14 May 2026 for the time being.」

「The global economy during the fiscal year remained uncertain due to growing policy uncertainty in the United States and the heightened tensions in the Middle East that became apparent toward the fiscal year-end. In the electronics industry, the business domain of the Group, growing demand for next-generation technologies, including AI, drove the overall semiconductor market. In Japan’s ICT industry, demand for system renewals aimed at improving productivity and operational efficiency remained strong.」

「The global economy during the consolidated fiscal year under review remained uncertain, owing to factors including increasing policy uncertainty in the United States and the escalating tensions in the Middle East that became apparent at the end of the fiscal year.」

「During the six-month period ended [current interim period], the global economy remained uncertain despite easing inflationary pressures and firm consumer spending in Europe and the United States, due to concerns over a slowdown in the Chinese economy, the impact of reviews of monetary policy in Europe and the United States, and rising geopolitical risks in Ukraine and the Middle East. In the electronics industry, the business domain of the Group, rapidly expanding demand for AI-related semiconductors drove the overall semiconductor market. In Japan’s ICT industry, the IT services market remained firm, supported by companies’ renewal of existing systems, migration to the cloud and promotion of DX (Digital Transformation).」

「During the nine-month period ended [current third quarter], the global economy remained uncertain, with strong caution over an economic downturn due to monetary tightening in various countries, concerns over the outlook for the Chinese economy and rising geopolitical risks. In the electronics industry, the business domain of the Group, recovery in demand for semiconductors and electronic components stagnated, and inventory adjustments continued.」

「In the electronics industry, the business domain of the Group, recovery in demand for semiconductors and electronic components stagnated, and inventory adjustments continued. In Japan’s ICT industry, meanwhile, the IT services market remained firm, supported by companies’ renewal of existing systems, migration to the cloud and promotion of DX (Digital Transformation).」

「During the three-month period ended [current first quarter], economic and social activity continued to normalise following the COVID-19 pandemic. However, downside risks to the economy remained significant due to global inflation, the monetary tightening that accompanied it in various countries, and rising geopolitical risks, leaving the outlook uncertain. In the electronics industry, the business domain of the Group, supply and demand for semiconductors and electronic components, which had remained tight, entered an adjustment phase.」

「During the nine-month period ended [current third quarter], the global economy saw economic activity gradually normalise, particularly in Europe and the United States, on the assumption of so-called living with COVID-19. However, the outlook remained uncertain due to global inflation, higher resource prices following Russia’s invasion of Ukraine, changes in monetary policy in various countries and the resulting sharp exchange-rate fluctuations. In the electronics industry, the business domain of the Group, the previously severe imbalance between supply and demand for semiconductors and electronic components began to ease, except in certain areas such as automobiles, and conditions gradually started to stabilise.」

「During the six-month period ended in the second quarter, economic activity normalized based on the so-called living with COVID-19, but uncertainty about the outlook remained amid growing concerns about an economic slowdown due to global inflation, higher resource prices associated with Russia’s invasion of Ukraine, and monetary tightening in various countries. In the electronics industry, the Group’s business domain, tight supply and demand for semiconductors and electronic components continued and affected production of automobiles, electronic equipment, and other products that use them.」

「During the three-month period ended in the first quarter, the global economy remained uncertain despite progress toward normalizing economic activity based on the so-called living with COVID-19, particularly in Europe and the United States. Downside risks to the economy, including the worsening and prolongation of the situation in Ukraine, soaring energy prices, and monetary tightening in various countries, also became evident.」

「In the electronics industry, the Group’s business domain, tight supply and demand for semiconductors and electronic components continued and affected production of automobiles, electronic equipment, and other products that use them.」

「In the electronics industry, the Group’s business domain, semiconductor and electronic component supply and demand became tight due to rapidly expanding demand, particularly for automobiles, as well as the impact of production plants shutting down because of the spread of COVID-19, mainly in Southeast Asia.」

「During the three-month period ended in the first quarter, economic activity recovered mainly in China, Europe, and the United States, but the timing of the containment of COVID-19 remained unforeseeable. In addition, issues that had existed before the pandemic, such as U.S.-China trade friction, resurfaced, and uncertainty about the outlook continued.」

「In the electronics industry, the Group’s business domain, semiconductor supply and demand became tight against a backdrop of production declines caused by U.S.-China trade friction and the COVID-19 pandemic and the recovery of the automotive market in China. In Japan’s ICT industry, corporate IT investment tended to be restrained due to the postponement of the Tokyo Olympic and Paralympic Games and the economic recession, while investment in digitalization, including the development of remote-work environments, became more active.」

「In the electronics industry, the Group’s business domain, conditions became difficult as the automotive-related market, a destination for semiconductor and electronic component sales, stagnated due to the impact of the spread of COVID-19. In Japan’s ICT industry, corporate IT investment tended to be restrained due to the postponement of the Tokyo Olympic and Paralympic Games and the economic recession, while investment in digitalization, including the development of remote-work environments, became more active.」

「During the three-month period ended in the first quarter, the global economy deteriorated rapidly as the spread of the novel coronavirus caused various economic activities, including corporate investment, to stagnate. Although countries subsequently began gradually moving to resume economic activity, conditions remained extremely severe.」

「During the consolidated fiscal year, the global economy generally followed a gradual recovery trend through the third quarter, but from the fourth quarter onward concerns about an economic downturn rapidly intensified due to the global spread of the novel coronavirus.」

「During the nine-month period ended in the third quarter, the global economy generally followed a gradual recovery trend, but U.S.-China trade friction, China’s economic slowdown, and the worsening situation in the Middle East remained downside risks. In Japan, uncertainty about the economic outlook intensified as exports and production remained weak.」

「During the six-month period ended in the second quarter, downside risks to the economy, including U.S.-China trade friction, the United Kingdom’s withdrawal from the European Union, and China’s economic slowdown, remained unresolved. In Japan, uncertainty about the economic outlook intensified as exports and production remained weak.」

「Concerns about trade friction between the United States and China, the United Kingdom’s withdrawal from the European Union, and the economic slowdown in China had not been dispelled, leaving continued uncertainty about the outlook for the global economy.」

「At the same time, uncertainty about the outlook for economic conditions in Japan and overseas intensified amid concerns about the impact on the global economy of trade friction between the United States and China and the United Kingdom’s withdrawal from the European Union.」

「At the same time, uncertainty in the global economy increased due to trade friction between the United States and China and geopolitical risks in Europe, intensifying uncertainty about the outlook for economic conditions in Japan and overseas.」

「At the same time, uncertainty increased due to developments in U.S. trade and monetary policy and geopolitical risks in Europe, causing uncertainty about the outlook to intensify.」

「In the electronics industry, the Group’s business domain, markets related to advanced driver assistance systems for automobiles, IoT, AI (artificial intelligence, Artificial Intelligence, Artificial Intelligence), and M2M continued to grow. In Japan’s IT industry, investment related to cloud computing, big data, and security remained firm, while demand also increased for investment aimed at improving corporate productivity, including initiatives to reform working styles.」

「During the nine-month period ended in the third quarter, the global economy generally remained on a recovery trend, particularly in developed countries, despite continued concerns about policy developments in the United States and Europe and geopolitical risks.」

「During the six-month period ended in the second quarter, the global economy generally remained firm, but uncertainty about the outlook continued amid growing concerns about policy developments in the United States and major European countries and geopolitical risks.」

「The outlook remained uncertain due to developments in U.S. government policies and rising geopolitical risks.」

「During the nine-month period ended in the third quarter, the global economy remained uncertain due to concerns about the effects of the United Kingdom’s decision to leave the European Union, the transition to a new administration in the United States, and the slowdown in emerging economies, including China. In the electronics industry, the expansion of markets related to advanced driver assistance systems for automobiles, IoT, and machine-to-machine (M2M) communications began to appear more realistic, while the smartphone market reached maturity and entered a plateau.」

「During the six-month period ended in the second quarter, the global economy became increasingly uncertain, driven by economic slowdowns in emerging markets, particularly China, and the issue of the United Kingdom’s withdrawal from the European Union. In the electronics industry, the smartphone market showed limited growth, while markets related to advanced driver assistance systems for automobiles and the Internet of Things (IoT) steadily expanded.」

「In the electronics industry, the slowdown in the smartphone market became increasingly evident, while expectations grew for markets related to advanced driver assistance systems, such as automatic braking, and the Internet of Things (IoT). The demand structure for semiconductors and electronic components is approaching a turning point.」

「The Group’s major products, semiconductors and electronic components, are used mainly in the information and communications and social and industrial sectors. Accordingly, market conditions in these sectors and economic trends in Japan and overseas could affect the Group’s performance.」