Sumco (3436 JP): Profits Going from Wafer Thin to Wafer Fat
Key Points
• Sumco shares surged sharply from Oct 2017 as the market became more convinced of the underlying strength supporting semiconductor silicon price hikes. In addition, it became clear that tightness was broadening beyond 300mm wafers to include 200mm and even smaller circumference wafers as well.
• In Aug 2017, Sumco management explained that it had finalized new contracts with most of its 300mm wafer purchasers, resulting in a steady increase in prices set to continue at least until 2019. That same month, Sumco began to flag the increasing tightness of 200mm wafer markets, a reflection of both strong semiconductor markets generally and a knock-on effect from stretched 300mm wafer capacity. The implication from all this is that wafer ASP will rise at a still higher pace in FY18 than in FY17.
• This report discussed the outlook for the industry, references Shin-Etsu Chemical (4063 JP), and looks at earnings and valuations for Sumco.
SUMCO is a manufacturing company that is mainly engaged in the high-purity silicon business. Along with its subsidiaries, Co. is involved in the manufacture and sale of various silicon wafers for semiconductors, including polished wafers, epitaxial wafers and special wafers; the production and sale of wafers; and the provision of technical and sales marketing support services in overseas markets, including the U.S., the U.K., Indonesia, Singapore, Taiwan and South Korea. In addition, Co., through its subsidiaries, is engaged in the finance and personnel services in the U.S.
Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods.
PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries.
The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.