Business Overview by Segment

Semiconductor Materials

In a reversal from fiscal 2021, when we achieved strong results with all our core products, demand dropped sharply from the second quarter of fiscal 2022. Sales of consumer products like smartphones in China and Taiwan failed to recover following the lifting of the lockdown in Shanghai, and we had trouble procuring components for in-vehicle electronics due to the semiconductor shortage and the impact of the war in Ukraine. This caused line operation to slow and we were unable to achieve the figures we initially forecast.

Demand for consumer products failed to recover in the second half, remaining sluggish through the end of the fiscal year. On the other hand, in the field of mobility, which is finally on track to recovery, attention should be given to the field of EVs. The field is growing steadily and inspiring high expectations. Furthermore, construction has already begun on our plan for additional production lines in anticipation of growth markets in China, Taiwan, Europe, and the United States, and we are moving forward according to schedule.

We have finally reached fiscal 2023, the final year of our Medium-term Business Plan. In order to gain market share in fast-paced and rapidly changing business domains, we believe that the key to sustainable growth will be to build relationships of trust with customers through strategic proposals and the capacity to execute them. We are developing open laboratories in Japan, Asia, Europe, and the United States, and will continue to enhance our system for responding to needs by working in collaboration with customers. In addition to our main products of semiconductor encapsulation materials, we also aim to grow our business in the area of photosensitive materials and paste for die bonding of semiconductors, by expanding into new applications such as power semiconductors and data communication applications, as well as micro and mini LEDs, antennas, and displays. We hope to gain momentum through these activities to achieve our targets for fiscal 2025: "revenue of 100 billion yen for a 20-25% ratio of total business profit."

In fiscal 2022, SDG-contributing products generated sales revenue of 61 billion yen. This represents 76% of all our semiconductor materials, up 2% from the previous fiscal year. This result is largely thanks to our three strategic mobility products: motor magnet sealing material, ECU batch encapsulation material, and sealing material for power modules. With the addition of our new sealing material for stators, we have a strong product line with which to contribute to the achievement of SDGs in the mobility sector. In light of society's growing needs concerning environmental initiatives, we are also enhancing our materials development by adopting bio-based raw materials, and materials that can be stored at room temperature and cure at low temperatures.