Business Overview by Segment
Semiconductor Materials
We will strengthen our collaboration
with customers and partners around
the world to become an unwavering
market leader with technological
innovation that always places us
one step ahead
SEMICONDUCTOR
A Review of Fiscal Y2023
Although stay-at-home demand related to the COVID-19 pandemic for semiconductor materials increased, demand slowed from the second half of FY2022. As the AI-related product market is currently booming, we expect the data center market to expand further as replacement demand for smartphones and PCs increases in the future. In addition, epoxy molding compounds for encapsulation of semiconductors, which are some of our mainstay products, has started to be used for mobility applications. The number of applications for fixing motor magnets in EVs and HVs and number of materials for encapsulating ECUs and power modules are growing.
Turning to overseas markets, in China, domestic demand for smartphones and other products continued to recover supported by increased exports. On the other hand, demand for consumer and telecommunication products is sluggish in Taiwan, and Southeast Asia is taking time to absorb its inventories of semiconductors for automobiles.
Overall, although the recovery in the third year of the previous Medium-term Business Plan was modest after an increase in demand due to a sharp recovery in demand due to the impact of COVID-19 and a subsequent sharp slowdown, sales and profits increased as the semiconductor market remained stagnant due to the continued strong performance of the three strategic products for mobility.
Business Characteristics/Strengths
- We hold top share of the global semiconductor encapsulation materials market and a competitive edge in the 3+1 strategic products for mobility encapsulation materials market
- Business framework that integrates production, sales, and research worldwide to enhance management efficiency
- Advanced technical capabilities and relationships of trust built with stakeholders worldwide
- Ability to make product proposals in the form of sets using back-end process materials such as semiconductor encapsulants and die bonding paste
- Global expansion of open labs enables close one-on-one communication with customers and accelerates research and development
- Ability to propose solutions in a cross-business manner through One Sumibe Activities
Business Risks and Opportunities
- Higher functionality of semiconductors due to the improvement of communication speed and the increase in communication volume
- Support high voltage and high current of power semiconductors by increasing the functionality of power generation derived from renewable energy, servers, home appliances, cars, etc.
- Acceleration of vehicle EV conversion
- Expansion of the semiconductor market in Asia
- Intensified competition for mainstay products
- Uncertainty and supply chain disruption due to geopolitical risks
- Delay in recovery of the smartphone and PC markets
- Soaring costs of raw materials, energy, logistics, etc.
- Stagnant demand due to global inflation
Business Performance (actual results and Medium-term Business Plan targets)
Fiscal 2024 Business Strategy
01. Determine enhanced areas with a view to 2030
- We have set power semiconductors, mobility, and AI-related areas as enhanced areas, and are carrying out well-balanced approaches in these areas
02. Make advanced semiconductor materials one of the pillars of our business
- Expand GPU, HBM, and AI-related product lineup
- Build relationships of trust through close communication with key customers and increase our presence in this field
03. Aim to become the world’s No. 1 manufacturer in the power semiconductor materials market, which is growing at a remarkable pace
- Expand product lineup to conform to customer development roadmaps
- Strengthen relationships with key customers by expanding open labs and making company-wide proposals through One Sumibe Activities
04. Increase share of molding compounds for mobility
- Enhance services worldwide, including expanding open labs, providing customer support through integrated production and sales, and local production for local consumption
- Strengthen global collaboration with customers to enhance new product development
05. Expand SDG-contributing products and differentiate products
- Expand the number of environmentally-friendly products such as low-temperature curing materials for semiconductor encapsulants and materials for fixing motor magnet that are easier to break down
06. Realize strategic allocation by utilizing new plants and new lines
- Establish an optimal supply system by utilizing new plants in Taiwan and China and new lines in Belgium and the United States
07. Strengthen external collaboration
- In addition to customers, we actively collaborate with academia and suppliers to solve technical issues
Enhanced area 1: Materials for Advanced Semiconductors
Materials that contribute to making semiconductor packages smaller, lighter, more energy efficient, and more reliable
Enhanced area 2: Materials for Power Semiconductors
These materials contribute to the higher level performance of power semiconductors by responding to higher currents, voltages, and increased heat stress
Enhanced area 3: Molding Compounds for Mobility
Encapsulating materials
for fixing
motor magnets
ECU direct
molding materials
Power module
sealing material
Encapsulating materials
for stators