Ferrotec, a manufacturer of semiconductor production equipment components, fell after opening higher, despite reports that it had raised its outlook for the second half. The operating profit forecast for the fiscal year ending December 2026 was raised from ¥60 billion to ¥68 billion, with growing AI-related demand cited as a factor improving the earnings mix.
Ferrotec was bought in the morning before falling in the afternoon, ending 3.6% lower than the previous day and declining to around ¥7,360. At the time of trading, it was down ¥271 from the previous day, a substantial decline.
On the same day, the company raised its consolidated forecast for the fiscal year ending December 2026 from ¥60 billion to ¥68 billion. No year-on-year comparison was provided because the fiscal year-end was changed.
Demand is increasing for semiconductor materials products for generative AI, including ceramics and quartz, as well as equipment-related products such as vacuum seals and metal processing. Demand is also expanding for thermoelectric modules used in optical transceivers for AI data centers. As a result, the sales mix is expected to shift toward higher-margin products.
The company plans to reconsider and disclose revisions to the numerical targets in its medium-term management plan after monitoring future business performance.