Sumco Corporation Overview
SUMCO is the world's second-largest maker of silicon wafers for semiconductors and the purest listed play on the wafer cycle. All of its revenue comes from one reportable segment, high-purity silicon. It grows single-crystal silicon ingots by the Czochralski method and turns them into 300mm and 200mm-and-below polished, annealed and epitaxial wafers for memory, logic and power-device makers. Its fused-silica crucibles come from its own JSQ Division, and since 2023 its polysilicon has come from Kojundo Silicon. That makes it unusually vertically integrated across the three critical inputs of crystal growth. FY2025 revenue was ¥409.7 billion, with 80.6% earned outside Japan and 37% in Taiwan. The company describes its global share as roughly 30%. AI-driven demand for leading-edge logic, HBM/DRAM and server NAND pushed 300mm shipments to a record of more than 8 million wafers a month in Q2 2026. However, depreciation from its 2023–2025 greenfield build-out has kept the company loss-making for five straight quarters. Management has now switched from adding capacity to upgrading existing lines and is waiting for wafer prices to recover before restarting greenfield construction.
What the company does. SUMCO makes and sells high-purity monocrystalline silicon wafers, the substrate on which almost all integrated circuits are built. Production runs through a fully integrated chain: polysilicon feedstock (Kojundo Silicon, acquired from Mitsubishi Materials in March 2023) → high-purity quartz-glass crucibles (JSQ Division) → Czochralski crystal pulling of 300mm and smaller ingots → slicing, lapping/grinding, etching, double-side polishing, cleaning, heat treatment (annealing) and epitaxial deposition → metrology and shipment. Its 2025 securities report describes the business as a single segment, "high-purity silicon," covering 300mm wafers, 200mm-and-smaller wafers and polysilicon.
Company self-description (FY2025 securities report). SUMCO presents itself as a specialist manufacturer of silicon wafers for semiconductor device makers worldwide. It runs a material-supply model using polycrystalline silicon as raw material, and it works with customers on joint development to win "first call" status for wafers used in next-generation devices. Its corporate vision speaks of being "the world's No. 1 company in technology," a company of "lively employees with a strong profit mindset," and a company "strong in overseas markets."
Business and revenue model. Revenue is almost entirely product revenue from wafer sales. There is no material service, subscription or licensing revenue.
Long-term agreements (LTAs): Most 300mm volume is sold under multi-year LTAs that set volumes and prices in advance, some running to 2028. In Q2 2026 management said LTA prices "continued to be respected." Spot sales are a small share of revenue.
Trading-company channel: Much of the volume to device makers passes through Sumitomo Corporation, which accounted for 27.0% of FY2025 net sales as a sales intermediary.
Pricing: Prices are set per wafer and depend on diameter, crystal specification, flatness/nanotopography, defect density and whether the wafer is polished, annealed or epitaxial. Contract prices are not publicly disclosed.
Value-chain position. SUMCO sits upstream of every semiconductor fab. Its suppliers are crystal-growth and polishing equipment makers, high-purity quartz sand producers (globally concentrated in Spruce Pine, North Carolina), graphite and carbon parts makers, and electricity providers. Its customers are foundries, DRAM/NAND/HBM makers, logic IDMs and power/analog device makers. Because the JSQ Division makes its own crucibles and Kojundo Silicon supplies polysilicon, SUMCO controls more of its own input chain than most wafer peers. The remaining weak link is its dependence on high-purity quartz sand.
Customer types and end-markets.
Leading-edge foundries and logic IDMs: Products bought: 300mm epitaxial and polished wafers for ≤7nm/3nm/2nm logic; End-market demand driver: AI accelerators, CPUs, smartphones
DRAM and HBM makers: Products bought: 300mm polished/annealed wafers; End-market demand driver: AI data-centre memory, HBM stacks, server DRAM
NAND makers: Products bought: 300mm polished wafers; End-market demand driver: AI server SSDs, agentic-AI storage workloads
Power and analog device makers: Products bought: 200mm and 150mm wafers, epitaxial wafers; End-market demand driver: Power MOSFETs, automotive, industrial
Image sensor and specialty device makers: Products bought: 300mm and 200mm epitaxial wafers; End-market demand driver: Consumer, automotive cameras
Independent characterization. SUMCO is a high-fixed-cost, high-operating-leverage commodity-specialty hybrid. At the leading edge (sub-3nm logic epi and HBM-grade polished wafers), qualification cycles of two to three years and customer co-development create real switching costs and pricing power. In 200mm and below, competition from Chinese suppliers backed by state policy is turning the product into a commodity. The investment case therefore hinges on three things: the mix shift to leading-edge 300mm; how fast the record ¥115.7 billion depreciation charge of FY2025 (with FY2026 the peak year) rolls off under declining-balance accounting; and whether wafer prices can rise enough to justify the next round of capacity.
Strategy
Stated strategic themes
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"Technology No. 1 in the world." Win "first call" supplier status for next-generation device wafers through joint development with leading customers, with priority on post-2nm logic and AI-memory specifications.
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Concentrate on leading-edge 300mm. Leading-edge wafers are about 20% of 300mm revenue and growing. In 2023 management projected that demand for advanced logic wafers for data centres would grow at a 26% CAGR from 2023 to 2027.
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Profit mindset and cost leadership. Use AI to cut variable and manufacturing costs (led by the new AI Promotion Division) and restructure the small-diameter business.
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Strength in overseas markets. More than 80% of sales are outside Japan, anchored by Taiwan.
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Capital discipline after the build-out. Upgrade existing lines rather than build greenfield fabs. No greenfield restart unless wafer prices rise significantly; the president has said a 5–10% increase "would not be meaningful."
Strategic initiatives (last 24 months)
| Date | Initiative | Detail | Targets / status |
|---|---|---|---|
| Feb 2025 | Small-diameter structural reform | Miyazaki ends 200mm wafer production by end-2026; ingot production retained; wafer processing moves to Japanese plants and Indonesia; staff redeployed to 300mm | In progress; management says the reform will take time to contribute |
| 2025–2026 | AI-driven productivity programme | AI Promotion Division set up under a Senior Managing EO; AI applied to production control | Cost-reduction targets not publicly disclosed |
| Feb 19, 2026 | FST capital restructuring | Partial sale of FST shares to move from consolidation to equity method | Completed August 20, 2026 (43.2% → 38.0%); SUMCO is still reviewing the best capital relationship with Formosa Plastics |
| Mar 27, 2026 | Revised METI Stable Supply Plan | New-fab construction (Imari expansion and Yoshinogari) replaced by equipment upgrades at existing sites, especially Imari, for leading-edge wafers | Maximum subsidy cut from ¥75 billion to ¥19.3 billion; about ¥1 billion of subsidy income expected in Q3 2026 |
| Mar 2026 | Pre-emptive financing | Borrowing brought forward into March ahead of expected Japanese rate rises | Cash and deposits ¥111.7 billion at June 30, 2026 |
| 2026 onward | Capex normalisation | Annual capex of about ¥50–60 billion, mainly upgrades | Down from ¥315.4 billion (acceptance basis) in FY2023 |
| Ongoing | Vertical integration | In-house crucibles (JSQ) and polysilicon (Kojundo Silicon) | Secures critical inputs |
| Ongoing | Sustainability | Scope 1+2 −42% by 2030 versus 2023; Scope 3 −25% by 2030; carbon neutral by 2050 | 2024 Scope 1+2 down about 7% from the 2023 base |
Feb 2025: Initiative: Small-diameter structural reform; Detail: Miyazaki ends 200mm wafer production by end-2026; ingot production retained; wafer processing moves to Japanese plants and Indonesia; staff redeployed to 300mm; Targets / status: In progress; management says the reform will take time to contribute
2025–2026: Initiative: AI-driven productivity programme; Detail: AI Promotion Division set up under a Senior Managing EO; AI applied to production control; Targets / status: Cost-reduction targets not publicly disclosed
Feb 19, 2026: Initiative: FST capital restructuring; Detail: Partial sale of FST shares to move from consolidation to equity method; Targets / status: Completed August 20, 2026 (43.2% → 38.0%); SUMCO is still reviewing the best capital relationship with Formosa Plastics
Mar 27, 2026: Initiative: Revised METI Stable Supply Plan; Detail: New-fab construction (Imari expansion and Yoshinogari) replaced by equipment upgrades at existing sites, especially Imari, for leading-edge wafers; Targets / status: Maximum subsidy cut from ¥75 billion to ¥19.3 billion; about ¥1 billion of subsidy income expected in Q3 2026
Mar 2026: Initiative: Pre-emptive financing; Detail: Borrowing brought forward into March ahead of expected Japanese rate rises; Targets / status: Cash and deposits ¥111.7 billion at June 30, 2026
2026 onward: Initiative: Capex normalisation; Detail: Annual capex of about ¥50–60 billion, mainly upgrades; Targets / status: Down from ¥315.4 billion (acceptance basis) in FY2023
Ongoing: Initiative: Vertical integration; Detail: In-house crucibles (JSQ) and polysilicon (Kojundo Silicon); Targets / status: Secures critical inputs
Ongoing: Initiative: Sustainability; Detail: Scope 1+2 −42% by 2030 versus 2023; Scope 3 −25% by 2030; carbon neutral by 2050; Targets / status: 2024 Scope 1+2 down about 7% from the 2023 base
Guidance and medium-term targets
| Metric | Q3 FY2026 guidance | 9M FY2026 guidance | 9M FY2025 actual |
|---|---|---|---|
| Net sales (JPY bn) | 118.0 | 333.0 | 304.4 |
| Operating income (JPY bn) | 0.0 | -6.3 | 5.9 |
| Ordinary income (JPY bn) | 1.0 | -11.1 | 2.2 |
| Net income to owners (JPY bn) | 0.0 | -12.8 | -1.0 |
| EBITDA margin (%) | 28.6 | — | — |
| Depreciation (JPY bn) | 35.4 | ~100 | — |
SUMCO publishes only one-quarter-ahead guidance because of industry volatility. It has no publicly disclosed numeric medium-term plan for revenue, margin or ROE. Current guidance:
Net sales (JPY bn): Q3 FY2026 guidance: 118.0; 9M FY2026 guidance: 333.0; 9M FY2025 actual: 304.4
Operating income (JPY bn): Q3 FY2026 guidance: 0.0; 9M FY2026 guidance: -6.3; 9M FY2025 actual: 5.9
Ordinary income (JPY bn): Q3 FY2026 guidance: 1.0; 9M FY2026 guidance: -11.1; 9M FY2025 actual: 2.2
Net income to owners (JPY bn): Q3 FY2026 guidance: 0.0; 9M FY2026 guidance: -12.8; 9M FY2025 actual: -1.0
EBITDA margin (%): Q3 FY2026 guidance: 28.6
Depreciation (JPY bn): Q3 FY2026 guidance: 35.4; 9M FY2026 guidance: ~100
Qualitative guidance from the Q2 2026 call:
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300mm shipments are expected to keep growing quarter on quarter through Q3 and Q4 2026, with plants close to full utilisation.
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Server wafer demand may exceed supply for more than three years.
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Customer inventories are expected to stay somewhat elevated for three to five years as memory makers hold more wafers.
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2026 is the depreciation peak.
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The year-end dividend has not been decided.
Products & Services
All products sit in the single high-purity silicon segment. Prices are set under confidential LTAs or spot quotes, and price lists are not publicly disclosed.
300mm wafers
| Product | Description and key specifications | Target customers | Status |
|---|---|---|---|
| 300mm polished wafers | Double-side-polished prime wafers built to SEMI 300mm standards; ultra-low defect density, tight site flatness and edge-roll-off for advanced lithography | DRAM, HBM, NAND makers; logic test and monitor use | Core volume product; FY2025 securities report names it as a key product |
| 300mm epitaxial wafers | Single-crystal silicon epi layer on a polished substrate, giving controlled resistivity profiles and a defect-free device layer; used for leading-edge logic down to 3nm and 2nm-class | Leading-edge foundries and logic IDMs | Highest-value product; leading-edge wafers make up about 20% of 300mm revenue |
| 300mm annealed wafers | High-temperature hydrogen/argon annealing dissolves near-surface crystal-originated particles to give a defect-free surface zone | Memory and logic | In production |
| 300mm wafers for HBM | Polished wafers with crystal properties optimised for through-silicon-via stacking and thinning | HBM makers | Demand rising since 2025 |
| Next-generation (post-2nm) wafers | Wafers meeting the tighter flatness, oxygen-precipitation and particle specs of nodes below 2nm; developed with customers for "first call" status | Leading-edge logic | The priority of the 2026 equipment-upgrade programme at Imari |
200mm-and-below wafers
| Product | Description and key specifications | Target customers | Status |
|---|---|---|---|
| 200mm polished wafers | Prime polished wafers | Analog, MCU, power, sensors | Mixed demand; gradual recovery in 2026 |
| 200mm epitaxial wafers | Epi wafers for power devices and CMOS image sensors | Power MOSFET and IGBT makers | Power MOSFETs named as a 2026 demand driver |
| 150mm-and-smaller wafers | Legacy diameters | Discrete and power devices | Being consolidated into fewer sites |
| Junction-isolated, SOI and reclaimed polished wafers | Specialty products listed in the product range | Specialty devices | Niche volumes |
JSQ Division — quartz-glass crucibles (former Japan Super Quartz)
| Product | Description and key specifications | Target customers | Status |
|---|---|---|---|
| Quartz-glass (vitreous silica) crucibles for silicon single-crystal pulling | Arc-fused crucibles with a high-purity synthetic or natural quartz inner layer and an opaque outer layer containing bubbles; built for multi-day 300mm pulls. Patented designs cover crystallisation-accelerator-containing layers, multilayer structures, coatings with peel strength ≥0.3 kN/m, and tighter carbon-susceptor fit | Mainly SUMCO's own crystal-pulling plants; some external supply | Active patenting continues (e.g. US 12,252,804 B2, March 2025; US 12,325,278, July 2025) |
| Crucible handling and manufacturing equipment know-how | Lift and handling devices and manufacturing apparatus (patented) | Internal | Supports in-house crucible output |
The JSQ Division is one of the top three global suppliers of quartz crucibles for semiconductors, alongside Shin-Etsu Quartz Products and the former CoorsTek crucible business (now part of Momentive Technologies). Its standalone revenue is not publicly disclosed.
Polysilicon (Kojundo Silicon)
| Product | Description | Target customers | Status |
|---|---|---|---|
| Semiconductor-grade polysilicon | Hyper-pure polycrystalline silicon feedstock, including chunk polysilicon | Mainly internal crystal growth | Acquired March 2023; SUMCO filed US trademarks for "SUMCO" covering polysilicon in May 2023 |
Single-crystal ingots
| Product | Description | Notes |
|---|---|---|
| Monocrystalline silicon ingots | Czochralski-grown ingots | The Miyazaki plant is converting to a single-crystal ingot production site as wafer processing moves elsewhere (by end-2026) |
Financial Narrative
All figures are consolidated under Japanese GAAP, in JPY, for fiscal years ending December 31, from SUMCO's securities reports and earnings releases (kessan tanshin) for FY2021–FY2025. EBITDA is operating income plus depreciation and amortisation from the cash-flow statement. SUMCO's own reported FY2025 EBITDA margin is 27.4%.
Income statement
SUMCO has no dilutive securities, so diluted EPS equals basic EPS (and is not presented for the FY2025 loss year).
Revenue CAGR. FY2021–FY2025: +5.1% a year. FY2022–FY2025 (peak to latest): −2.4% a year.
Commentary.
Inflection 1 (FY2022 peak): Wafer shortages and LTA-backed price rises drove sales up 31.4% to a record ¥441.1 billion and the operating margin to 24.9%.
Inflection 2 (FY2023–FY2024 downcycle): Customer inventory corrections in non-AI logic, smartphones, PCs and automotive cut volumes. FY2023 pre-tax income of ¥92.7 billion included ¥20.1 billion of extraordinary income, and FY2024 included a ¥5.8 billion extraordinary loss.
Inflection 3 (FY2025 depreciation shock): Sales rose 3.3% as AI-driven 300mm demand recovered, but depreciation jumped ¥36.7 billion to ¥115.7 billion as the new Imari and Omura capacity came online. Operating income fell 96.4% to ¥1.3 billion, and SG&A rose to ¥53.2 billion. The FY2025 result still beat the November 2025 forecast of a ¥4.2 billion operating loss, helped by yen weakness (average ¥149.8/USD) and smooth production.
2026 trajectory: In H1 2026 sales rose 4.7% to ¥215.0 billion, but the operating loss was ¥6.4 billion and the net loss ¥12.9 billion. Cost of sales rose 14.9% on depreciation, materials and electricity. Q3 2026 guidance calls for sales of ¥118.0 billion and roughly breakeven operating profit. Management has said 2026 will be the depreciation peak, and because SUMCO uses five-year declining-balance depreciation, the burden should ease significantly in 2027–2028.
Balance sheet
Cash and deposits on the FY2025 balance sheet, which include time deposits, were ¥75.3 billion. Property, plant and equipment was ¥663.4 billion, construction in progress ¥90.3 billion (down from ¥123.4 billion), and retained earnings ¥260.5 billion. FY2025 debt consisted of ¥41.3 billion of short-term borrowings, ¥312.2 billion of long-term borrowings and ¥0.3 billion of leases, with no bonds outstanding. At June 30, 2026, cash and deposits had risen to ¥111.7 billion after SUMCO brought March 2026 financing forward ahead of expected Japanese rate rises. Interest-bearing debt was up ¥13.6 billion, the equity ratio was 50.0% and gross D/E was 0.65x.
Commentary. The balance sheet changed sharply between FY2022 and FY2024. Net cash of ¥109 billion became net debt of ¥267 billion as cumulative cash capex of about ¥504 billion in FY2023–FY2024 ran far ahead of operating cash flow. Inventories rose 43% from FY2021 to FY2025, driven largely by raw materials and supplies (up ¥13.9 billion in FY2025 alone). This reflects polysilicon bought under take-or-pay supply contracts during the shortage years, and it ties up working capital. Goodwill is negligible. The equity ratio has held around 50% since FY2024.
Cash flow
On an acceptance (booking) basis, capex was ¥130.9 billion in FY2022, ¥315.4 billion in FY2023, ¥214.9 billion in FY2024 and ¥80.0 billion in FY2025, falling to ¥19.4 billion in H1 2026. Management expects about ¥50–60 billion a year over the next few years. In H1 2026 operating cash flow was ¥46.5 billion, investing outflow ¥25.5 billion and free cash flow positive at ¥21.0 billion. That marks a return to positive free cash flow after three negative years.
Ratios
Interest expense rose from ¥0.86 billion in FY2021 to ¥2.71 billion in FY2025 and reached ¥1.84 billion in H1 2026 alone (H1 2025: ¥1.35 billion). Payout ratios were 30.2% (FY2021), 40.4% (FY2022), 30.1% (FY2023) and 36.9% (FY2024); for FY2025 the ratio is not meaningful because of the net loss. Dividends on equity were 1.2% in FY2025.
Commentary. Returns have fallen from a 17.7% ROIC peak in FY2022 to slightly negative because the capital base has grown much faster than earnings. Leverage at 2.45x net debt to EBITDA is manageable for an A-rated issuer, and EBITDA still covers interest more than 40 times. The weak point is operating-profit coverage, which fell to 0.5x in FY2025. A cash conversion cycle of about 300 days is structurally long, a product of strategic polysilicon inventory and long crystal-growth lead times. Normalising it is one of the biggest potential sources of cash once polysilicon contracts reset.
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View Subscription PlansFinancial Detail
Revenue by Segment and Segment Margins & Growth (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
High-purity silicon segment revenue (JPY Bn) | 425.9 | 396.6 | 409.7 |
Segment operating income (JPY Bn) | 73.1 | 36.9 | 1.3 |
Segment operating margin (%) | 17.2 | 9.3 | 0.3 |
Segment revenue growth YoY (%) | -3.4 | -6.9 | 3.3 |
Share of group revenue (%) | 100 | 100 | 100 |
Unit / Product Family Details
| Unit / product family | Contents | Main sites | Notes |
|---|---|---|---|
300mm wafers | Polished, annealed and epitaxial 300mm wafers for logic, DRAM/HBM, NAND | Saga (Imari, Kyushu Business Site), Yamagata, Nagasaki (incl. new Omura plant), Taiwan (FST, equity-method from Q3 2026) | Shipments above 8 million wafers/month in Q2 2026, a record |
200mm-and-below wafers | 200mm and 150mm polished and epitaxial wafers for power, analog, sensors | Nine sites: six in Japan plus US (Phoenix), Indonesia and Taiwan | Just under 4 million wafers/month in Q1 2026; under restructuring |
JSQ Division (quartz crucibles) | High-purity quartz-glass crucibles for Czochralski pulling | Akita (crucible process development and manufacturing) | Mainly captive; formerly Japan Super Quartz Corporation |
Polysilicon | High-purity polysilicon feedstock | Kojundo Silicon (Mie Prefecture, Yokkaichi) | Acquired March 2023 |
Group Entities
| Entity | Country | Role | SUMCO interest |
|---|---|---|---|
SUMCO TECHXIV Corporation | Japan (Nagasaki/Omura) | 300mm and 200mm wafers; holds the FST stake | 100% |
Kojundo Silicon Co., Ltd. (高純度シリコン) | Japan | Polysilicon | 100% |
SUMCO Phoenix Corporation | United States (Arizona) | 200mm wafers | 100% |
SUMCO Southwest Corporation | United States | US operations | 100% |
PT. SUMCO Indonesia | Indonesia | Small-diameter wafers | Consolidated subsidiary |
Formosa SUMCO Technology Corporation (FST) | Taiwan (listed, 3532) | 300mm and 200mm wafers | 43.2% until August 20, 2026; 38.0% afterwards (equity-method from September 30, 2026) |
SUMCO Singapore Pte. Ltd.; SUMCO Taiwan Technology; UK and US sales entities | Singapore, Taiwan, UK, US | Sales and technical support | 100% |
Results by Segment and Segment Margins & Growth (%)
| Metric | Q1 FY2025 | Q2 FY2025 | Q3 FY2025 | Q4 FY2025 | Q1 FY2026 | Q2 FY2026 |
|---|---|---|---|---|---|---|
Net sales (JPY Bn) | 102.5 | 102.9 | 99.1 | 105.2 | 101.4 | 113.6 |
Operating income (JPY Bn) | 6.0 | 1.5 | -1.6 | -4.5 | -5.3 | -1.1 |
Net income to owners (JPY Bn) | 3.0 | 0.0 | -4.1 | -10.8 | -8.5 | -4.4 |
EBITDA margin (%) | 28.1 | 27.3 | 27.6 | 26.6 | 23.1 | 26.9 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales (JPY Bn) | 335.7 | 441.1 | 425.9 | 396.6 | 409.7 |
Cost of sales (JPY Bn) | 255.6 | 297.7 | 317.7 | 323.9 | 355.2 |
Gross profit (JPY Bn) | 80.1 | 143.4 | 108.3 | 72.7 | 54.5 |
SG&A (JPY Bn) | 28.6 | 33.7 | 35.2 | 35.8 | 53.2 |
Operating income (JPY Bn) | 51.5 | 109.7 | 73.1 | 36.9 | 1.3 |
Ordinary income (JPY Bn) | 51.1 | 111.3 | 72.6 | 37.5 | -3.9 |
Pre-tax income (JPY Bn) | 51.1 | 111.3 | 92.7 | 31.6 | -3.9 |
Net income attributable to owners (JPY Bn) | 41.1 | 70.2 | 63.9 | 19.9 | -11.8 |
Depreciation & amortisation (JPY Bn) | 52.8 | 59.8 | 71.6 | 79.0 | 115.7 |
EBITDA (JPY Bn) | 104.3 | 169.5 | 144.7 | 115.9 | 117.0 |
Basic EPS (JPY) | 135.86 | 200.49 | 182.59 | 56.84 | -33.60 |
Dividend per share (JPY) | 41 | 81 | 55 | 21 | 20 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 23.9 | 32.5 | 25.4 | 18.3 | 13.3 |
Operating margin (%) | 15.4 | 24.9 | 17.2 | 9.3 | 0.3 |
EBITDA margin (%) | 31.1 | 38.4 | 34.0 | 29.2 | 28.6 |
Net margin (%) | 12.2 | 15.9 | 15.0 | 5.0 | -2.9 |
Revenue growth YoY (%) | 15.2 | 31.4 | -3.4 | -6.9 | 3.3 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (JPY Bn) | 764.8 | 892.6 | 1,073.1 | 1,172.7 | 1,128.0 |
Cash & cash equivalents (JPY Bn) | 218.2 | 250.5 | 147.7 | 87.2 | 67.3 |
Short-term debt (JPY Bn) | 32.5 | 30.4 | 34.1 | 41.6 | 41.3 |
Long-term debt (JPY Bn) | 108.3 | 110.6 | 190.1 | 312.0 | 312.2 |
Total debt (JPY Bn) | 141.1 | 141.4 | 224.5 | 354.0 | 353.7 |
Net debt (JPY Bn) | -77.1 | -109.1 | 76.7 | 266.8 | 286.4 |
Shareholders' equity (JPY Bn) | 476.1 | 533.6 | 572.2 | 592.1 | 578.4 |
Non-controlling interests (JPY Bn) | 46.7 | 57.9 | 63.4 | 65.1 | 69.4 |
Total net assets (JPY Bn) | 522.8 | 591.5 | 635.5 | 657.2 | 647.8 |
Goodwill & intangibles (JPY Bn) | 8.7 | 8.2 | 7.7 | 7.3 | 7.2 |
Inventories (JPY Bn) | 174.8 | 182.4 | 218.4 | 233.3 | 250.6 |
Trade receivables (JPY Bn) | 75.6 | 90.0 | 82.8 | 92.5 | 90.0 |
Trade payables (JPY Bn) | 30.7 | 38.0 | 34.2 | 32.0 | 32.1 |
Working capital (JPY Bn) | 378.3 | 386.4 | 269.3 | 271.5 | 294.3 |
Equity ratio (%) | 62.3 | 59.8 | 53.3 | 50.5 | 51.3 |
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View Subscription PlansCash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (JPY Bn) | 104.7 | 179.5 | 96.3 | 69.6 | 100.0 |
Capital expenditure, cash (JPY Bn) | 67.8 | 125.5 | 256.9 | 247.2 | 111.0 |
Free cash flow (JPY Bn) | 36.9 | 54.0 | -160.6 | -177.6 | -11.0 |
Dividends paid (JPY Bn) | 7.6 | 21.0 | 30.5 | 9.8 | 5.6 |
Share buybacks (JPY Bn) | 2.5 | 0.0 | 0.9 | 0.0 | 0.0 |
Equity issuance (JPY Bn) | 119.8 | 0.0 | 0.0 | 0.0 | 0.0 |
Debt issued (JPY Bn) | 29.5 | 32.7 | 112.4 | 162.7 | 56.1 |
Debt repaid (JPY Bn) | 38.2 | 32.5 | 30.4 | 36.6 | 59.7 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%) | 10.4 | 13.9 | 11.6 | 3.4 | -2.0 |
ROA, net income / year-end assets (%) | 5.4 | 7.9 | 6.0 | 1.7 | -1.0 |
ROIC (%) | 10.4 | 17.7 | 9.7 | 3.2 | -0.4 |
Current ratio (x) | 4.64 | 3.46 | 2.32 | 2.66 | 3.21 |
Debt / total equity (x) | 0.27 | 0.24 | 0.35 | 0.54 | 0.55 |
Net debt / EBITDA (x) | -0.74 | -0.64 | 0.53 | 2.30 | 2.45 |
Interest coverage, operating income / interest expense (x) | 60.1 | 134.4 | 64.2 | 14.1 | 0.5 |
EBITDA / interest expense (x) | 121.7 | 207.7 | 127.0 | 44.3 | 43.2 |
Asset turnover (x) | 0.49 | 0.53 | 0.43 | 0.35 | 0.36 |
Days inventory outstanding | 250 | 224 | 251 | 263 | 258 |
Days sales outstanding | 82 | 75 | 71 | 85 | 80 |
Days payables outstanding | 44 | 47 | 39 | 36 | 33 |
Cash conversion cycle (days) | 288 | 252 | 283 | 312 | 305 |
Revenue by Region and Revenue by Region (%)
| Region (JPY Bn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Taiwan | 92.1 | 137.0 | 147.8 | 138.8 | 153.2 |
Japan | 75.8 | 85.6 | 81.9 | 83.5 | 79.6 |
China | 55.9 | 71.8 | 58.6 | 51.0 | 52.0 |
Europe and other | 35.2 | 52.0 | 52.5 | 47.0 | 48.1 |
South Korea | 44.1 | 49.5 | 40.7 | 40.0 | 40.5 |
United States | 32.5 | 45.2 | 44.4 | 36.4 | 36.3 |
Overseas sales ratio (%) | 77.4 | 80.6 | 80.8 | 78.9 | 80.6 |
Growth YoY (%)
| Growth YoY (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Taiwan | 48.7 | 7.9 | -6.1 | 10.4 |
Japan | 13.0 | -4.3 | 1.9 | -4.7 |
China | 28.5 | -18.4 | -13.0 | 1.9 |
Europe and other | 47.7 | 1.0 | -10.5 | 2.3 |
South Korea | 12.2 | -17.8 | -1.8 | 1.3 |
United States | 39.0 | -1.8 | -18.0 | -0.2 |
Share of FY2025 revenue (%) | FY2025 | — | — | — |
Taiwan | 37.4 | — | — | — |
Japan | 19.4 | — | — | — |
China | 12.7 | — | — | — |
Europe and other | 11.7 | — | — | — |
South Korea | 9.9 | — | — | — |
United States | 8.9 | — | — | — |
Market Valuation and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Year-end market capitalisation (JPY Bn) | 822.5 | 615.2 | 739.4 | 413.7 | 501.8 |
Year-end EV (JPY Bn) | 915.4 | 537.5 | 809.6 | 701.2 | 851.6 |
EV / EBITDA (x) | 8.8 | 3.2 | 5.6 | 6.2 | 7.6 |
EV / sales (x) | 2.73 | 1.22 | 1.90 | 1.77 | 2.08 |
P / B (x) | 1.57 | 1.04 | 1.16 | 0.63 | 0.78 |
Dividend yield (%) | 1.93 | 4.88 | 2.68 | 1.81 | 1.40 |
Capital Markets
| Item | Value |
|---|---|
Analysts covering | 16 |
Consensus rating | Hold / Outperform (varies by aggregator) |
Average 12-month target | ¥3,886.25 |
Target range | ¥1,440 – ¥5,500 |
Recent actions | Morgan Stanley Hold, ¥3,000 (Sep 29, 2026); UBS upgrade to Buy (October 2026) |
Q3 FY2026 consensus EPS | −¥10.25 |
Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Interim DPS (JPY) | 17 | 36 | 42 | 15 | 10 |
Year-end DPS (JPY) | 24 | 45 | 13 | 6 | 10 |
Annual DPS (JPY) | 41 | 81 | 55 | 21 | 20 |
Credit Ratings
| Agency | Rating | Outlook | Date |
|---|---|---|---|
Japan Credit Rating Agency (JCR) — long-term issuer | A | Stable | Affirmed January 9, 2026 |
JCR — commercial paper (¥40 billion program) | J-1 | — | Affirmed January 9, 2026 |
Analyst Conclusions
Management guidance
Q3 FY2026: sales ¥118.0 billion (+¥4.4 billion QoQ), roughly breakeven operating profit, ordinary profit of ¥1.0 billion (including about ¥1 billion of subsidies), roughly breakeven net income, EBITDA margin 28.6%, depreciation ¥35.4 billion.
9M FY2026: sales ¥333.0 billion (+9.4%), operating loss ¥6.3 billion, net loss ¥12.8 billion.
Q4 FY2026: depreciation expected to rise slightly; plants close to full utilisation; inventory being built ahead of regular maintenance at the main plant.
Beyond: capex of about ¥50–60 billion a year; depreciation burden easing significantly in 2027–2028; no greenfield restart without significantly higher wafer prices.
Consensus expectations
Market forecasts put quarterly sales at about ¥121 billion in Q3 and Q4 2026 and ¥101.6–119.3 billion a quarter through 2027. Consensus EBITDA is about ¥32–33 billion a quarter in H2 2026. The consensus P/E of 31.5x on 2027 implies a sharp return to profit as depreciation falls.
Bull case
-
Operating leverage from depreciation roll-off. Depreciation rose from ¥79.0 billion (FY2024) to ¥115.7 billion (FY2025) and peaks in 2026. With five-year declining-balance accounting, each ¥10 billion fall in depreciation adds about 2.5 points of operating margin on a revenue base above ¥400 billion.
-
Tightening supply in 300mm. Shipments are at records above 8 million wafers a month, full utilisation is in sight, greenfield construction is frozen across SUMCO and much of the industry, and customers are now seeking higher prices or more volume rather than cuts. That sets up price increases as LTAs roll off through 2028.
-
Balance-sheet repair underway. Free cash flow turned positive in H1 2026 (+¥21.0 billion), capex is down to about ¥50–60 billion a year, and the FST sale releases capital. Leverage of 2.45x net debt to EBITDA should fall quickly.
Bear case
-
Prices may not rise enough. Management says a 5–10% wafer price rise "would not be meaningful" for new capacity. Peers' new fabs (GlobalWafers in the US and Italy, Siltronic in Singapore) and Chinese capacity could cap prices before SUMCO's margins recover to the 25% operating margin of FY2022.
-
Structural decline outside 300mm. China revenue is down 28% from its FY2022 peak, 200mm is still being restructured, and customer inventories may stay elevated for three to five years.
-
The share price already reflects much of the recovery and is volatile. Shares rose roughly 77% year to date while the company lost money for five straight quarters. They are trading at about 10x TTM EV/EBITDA versus 3–8x historical year-end levels, and fell 13.85% in a single day in October 2026 on sentiment about the AI cycle.
Key catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable | What to watch |
|---|---|---|
| Nov 11, 2026 | Q3 FY2026 results | Delivery of breakeven; gain or loss on the FST sale; Q4 guidance; year-end dividend decision |
| Q4 2026 | Main-plant maintenance shutdown | Effect on Q4 volumes and costs |
| Dec 2026 | Miyazaki wafer production ends | Restructuring costs and savings |
| Feb 2027 | FY2026 results and Q1 FY2027 guidance | Depreciation reset in January; first quarter after the depreciation peak |
| 2,027 | LTA renegotiations and spot pricing | Size of 300mm price increases |
| Spring 2027 | Yoshinogari land work completed | Any decision to restart greenfield construction |
| Ongoing | Further moves on the FST stake | Additional monetisation |
| Ongoing | Customer inventory months | Further drawdowns or restocking by memory makers |
| Ongoing | High-purity quartz supply | Spruce Pine output and crucible costs |
| Ongoing | Yen and Japanese interest rates | Revenue translation and financing costs |
Nov 11, 2026: Catalyst / monitorable: Q3 FY2026 results; What to watch: Delivery of breakeven; gain or loss on the FST sale; Q4 guidance; year-end dividend decision
Q4 2026: Catalyst / monitorable: Main-plant maintenance shutdown; What to watch: Effect on Q4 volumes and costs
Dec 2026: Catalyst / monitorable: Miyazaki wafer production ends; What to watch: Restructuring costs and savings
Feb 2027: Catalyst / monitorable: FY2026 results and Q1 FY2027 guidance; What to watch: Depreciation reset in January; first quarter after the depreciation peak
2027: Catalyst / monitorable: LTA renegotiations and spot pricing; What to watch: Size of 300mm price increases
Spring 2027: Catalyst / monitorable: Yoshinogari land work completed; What to watch: Any decision to restart greenfield construction
Ongoing: Catalyst / monitorable: Further moves on the FST stake; What to watch: Additional monetisation
Ongoing: Catalyst / monitorable: Customer inventory months; What to watch: Further drawdowns or restocking by memory makers
Ongoing: Catalyst / monitorable: High-purity quartz supply; What to watch: Spruce Pine output and crucible costs
Ongoing: Catalyst / monitorable: Yen and Japanese interest rates; What to watch: Revenue translation and financing costs
Analyst verdict
SUMCO is a good franchise going through an unprofitable stretch of its own making. Its competitive position has arguably never been stronger. It is the world's No. 2 wafer maker, with record 300mm shipments above 8 million wafers a month, close to full utilisation, deep ties with leading-edge Taiwanese foundries, and unusual control over its critical inputs through the JSQ crucible division and Kojundo Silicon polysilicon. The quartz crucible business that once traded as Japan Super Quartz is a hidden strategic asset. With high-purity quartz supply concentrated in one North Carolina town, controlling crucible technology and output in-house is a real source of supply security.
Earnings, however, are hostage to the 2023–2025 capacity build-out. Depreciation of ¥115.7 billion in FY2025 erased the operating margin, five straight quarters have been loss-making, and net debt has reached ¥286 billion. Management's March 2026 decision to freeze greenfield construction and redirect subsidies to upgrades was the right one: it shifts the company from chasing volume to defending returns, and free cash flow has already turned positive.
The way forward is fairly clear. Depreciation peaks in 2026 and falls in 2027–2028, utilisation stays high, and LTAs reprice into a market where no supplier is adding capacity at current prices. If wafer prices rise even modestly, operating margins could return to the mid-teens by 2028 without any volume heroics.
The risk is mainly in the share price, not the business. Shares at about ¥2,535 trade on roughly 10x TTM EV/EBITDA and 1.6x book, after a run to ¥5,939 and a fall of more than 55%. They already price in a substantial part of the margin recovery while carrying the full volatility of AI-cycle sentiment.
On balance, SUMCO is a fundamentally improving story with a share price for patient investors. The key proof points are a clean breakeven in Q3 2026 on November 11, the year-end dividend decision, and evidence in 2027 LTA talks that customers will pay for scarcity. Until then, a neutral-to-constructive stance is appropriate, with a bias to add on cycle-driven sell-offs rather than chase rallies.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background | Age |
|---|---|---|---|
Jiro Ryuta (龍田 次郎) | Representative Director & President | President since March 2026. Joined Mitsubishi Metal (now Mitsubishi Materials) in April 1985; SUMCO GM Overseas Sales 2008; President of SUMCO Singapore and SUMCO Taiwan Technology 2012; President of SUMCO Phoenix 2013–2022; Executive Officer 2014, Managing EO 2017, Senior Managing EO 2021; Representative Director & VP, Technology Division 2022; VP, Production & Technology Division and GM Kyushu Business Site 2023 | 66 (born February 16, 1960) |
Shinichi Kubozoe (窪添 伸一) | Representative Director, Vice President & CFO; GM, President's Office | Sumitomo Metal Industries background; leads financial reporting and guidance | — |
Seiya Hirota (弘田 成弥) | Representative Director & Vice President; GM, Production & Technology Division | Took over the Production & Technology Division from Ryuta in March 2026 | — |
Takeo Kato (加藤 健夫) | Director, Senior Managing Executive Officer; GM, AI Promotion Division | Leads the use of AI to cut variable and manufacturing costs | — |
Mayuki Hashimoto (橋本 眞幸) | Director & Senior Adviser | Joined Mitsubishi Metal in 1976; President of Mitsubishi Polycrystalline Silicon America 1997; Mitsubishi Materials Representative Director & Senior Managing Director 2007 and Representative Director & VP 2011; SUMCO outside director 2010; SUMCO President April 2012; Chairman & CEO March 2016 to March 2026 | 75 (born 1951) |
Takayuki Komori (小森 隆行) | General Manager, PR & IR Department | Investor-relations lead | — |
Board of Directors
| Name | Role | Committee / independence | Background |
|---|---|---|---|
Jiro Ryuta | Representative Director & President | Executive | See above |
Shinichi Kubozoe | Representative Director, VP & CFO | Executive | Sumitomo Metal lineage |
Seiya Hirota | Representative Director & VP | Executive | Production and technology |
Takeo Kato | Director, Senior Managing EO | Executive | AI promotion |
Mayuki Hashimoto | Director & Senior Adviser | Non-executive | Former Chairman & CEO |
加藤 茜愛 | Director | Non-executive | — |
Atsuro Fujii (藤井 淳郎) | Director, Audit & Supervisory Committee member | Audit & Supervisory Committee | — |
Hitoshi Tanaka (田中 等) | Director, Audit & Supervisory Committee member | Outside; attorney | Legal |
Masahiro Mitomi (三冨 正博) | Director, Audit & Supervisory Committee member | Outside; certified public accountant | Finance and audit |
Shinichiro Ota (太田 信一郎) | Director, Audit & Supervisory Committee member | Outside; former Ministry of Economy, Trade and Industry official | Industrial policy |
Masahiko Sue (須江 雅彦) | Director, Audit & Supervisory Committee member | Outside; former Director-General, Statistics Bureau (Ministry of Internal Affairs); former Executive Director & Vice President, Shiga University | Statistics and academia; 2026 approval 96.36% |
Amy Shigemi Hatta | Director, Audit & Supervisory Committee member | Outside | International |
Anita Killian | Director, Audit & Supervisory Committee member | Outside | International |
Major Shareholders
| Rank | Shareholder | Shares held (thousands) | % of shares outstanding |
|---|---|---|---|
| 1 | The Master Trust Bank of Japan, Ltd. (trust account) | 54,382 | 15.53 |
| 2 | Custody Bank of Japan, Ltd. (trust account) | 27,304 | 7.80 |
| 3 | MSCO Customer Securities (standing proxy: Morgan Stanley MUFG Securities) | 19,249 | 5.50 |
| 4 | JPMSLLC Client Assets SK JPY (standing proxy: Citibank, N.A., Tokyo Branch) | 11,709 | 3.34 |
Competitive Landscape
Key Competitors
| Competitor | Country | Positioning versus SUMCO |
|---|---|---|
Shin-Etsu Handotai (Shin-Etsu Chemical) | Japan | Global No. 1 wafer maker; part of a diversified chemicals group whose Electronics Materials segment earned a 33.9% operating margin in FY3/2026; strongest balance sheet in the industry (78.7% equity ratio) |
GlobalWafers | Taiwan | No. 3; expanding in the US (Texas, Missouri) and Italy; long-term contracts are more than 50% of revenue |
Siltronic AG | Germany | No. 4; new Singapore 300mm fab; 2025 EBITDA margin 23.5% |
SK siltron | South Korea | Captive-leaning supplier to SK hynix; also active in SiC wafers |
National Silicon Industry Group (NSIG) | China | Chinese 300mm leader backed by state policy; taking share in China |
Zhonghuan Advanced (TCL Zhonghuan) | China | 200mm and 300mm wafers for domestic customers |
Formosa SUMCO Technology | Taiwan | 38%-owned affiliate; a partner rather than a competitor |
Okmetic | Finland | Specialty 150/200mm wafers for MEMS and sensors |
Wafer Works | Taiwan | 150/200mm and power-device wafers |
Shin-Etsu Quartz Products | Japan | One of the top three semiconductor crucible makers; tied to Shin-Etsu Handotai |
Momentive Technologies (acquired CoorsTek's crucible business in November 2022; CoorsTek's Japanese crucible roots go back to Toyo Fire Brick, 1918) | United States / Japan | One of the top three |
SiFusion (Ferrotec) | China / Japan | Fast-growing |
Inner Mongolia OJing Science & Technology | China | Largely solar, moving into semiconductor grades |
Jinzhou Youxin Quartz; Jinzhou East Quartz; Nantong Robuster Quartz; Ningxia Jinglong Quartz; Zhejiang Meijing | China | Mostly solar crucibles; some semiconductor grade |
Peer Comparison FY2012
| Company | Fiscal year | Revenue | Revenue growth (%) | Operating / EBIT margin (%) | EBITDA margin (%) | R&D intensity (%) |
|---|---|---|---|---|---|---|
SUMCO | FY12/2025 | ¥409.7 bn | 3.3 | 0.3 | 28.6 | 2.7 |
Shin-Etsu Chemical — Electronics Materials segment | FY3/2026 | ¥1,015.8 bn | 9 | 33.9 | — | — |
GlobalWafers | FY12/2025 | NT$60.6 bn | -3.2 | 14.3 | 28.7 | 3.7 |
Siltronic | FY12/2025 | €1,346.7 m | -4.7 | -2.0 | 23.5 | — |
