Deep Intelligence Across Industries

Shin-Etsu Polymer is a Tokyo-based resin and silicone rubber processor controlled by Shin-Etsu Chemical. It turns PVC, silicone and engineering plastics into high-specification components for semiconductors, cars, office equipment, medical devices and food packaging. Its strategic core is the plastic containers that protect silicon wafers: shipping boxes (FOSB) used between wafer makers and chip plants, and front-opening unified pods (FOUP) used inside fabs. Together with Entegris and Miraial, it belongs to the small group that dominates this qualification-heavy niche. Around that core sit steadier businesses, including automotive input devices, printer rollers, catheter parts, carrier tape, wrapping film and functional compounds. The company has no borrowings, held JPY 55.1 billion of cash and deposits at 30 September 2026, and is working towards JPY 150 billion of sales by FY2030 with a payout ratio of 50% or more. **Company description.** The FY2026 Securities Report defines the group as a resin processor that combines materials and compounding, design, processing and evaluation technologies across silicone, plastics and conductive materials. The corporate philosophy is to observe the law, conduct fair business, create value through technology and products, and contribute to society and industry. Management aims to grow in any economic environment by strengthening existing businesses and creating new ones. **Independent characterisation.** Shin-Etsu Polymer is less a diversified chemical company than a semiconductor consumables franchise attached to a portfolio of niche engineered parts. Precision Molding Products was 51.9% of FY2026 sales and 72.8% of operating income. Wafer containers are the main reason for that weight, although the company does not report them separately. **Business model.** The company makes and sells physical products. Revenue is recognised at delivery, or at shipment for ordinary domestic sales. The only over-time revenue comes from construction contracts at Shin-Etsu Finetech. There is no subscription or licensing line of any significance, though the company licenses Digipak packaging in Japan from Atlas Holdings. Volume rebates are netted against sales, and paid-supply processing is recorded net. **Value chain position.** The company buys resins and silicone, some of it from its parent: JPY 3,698 million in FY2026, about 4.6% of cost of sales. It adds value through formulation, precision moulding, cleanroom manufacture, and evaluation and analysis. Customers are wafer makers, device makers, automotive suppliers, printer makers, medical device makers, supermarkets, restaurants and construction firms. **Customer concentration.** No customer reached 10% of FY2026 sales. Sister company Shin-Etsu Handotai bought JPY 3,327 million of semiconductor containers, 2.9% of sales. Management links continued listing to this independence: because the company is not simply a captive supplier, it says it can sell containers to all wafer makers, not only its parent (results briefing, 15 May 2026). **End markets.** **Semiconductors and electronic parts:** Principal products: FOSB, FOUP, carrier tape, connectors, wafer frames; Management classification: Growth **Automotive:** Principal products: Input devices, wipers, packings, EV fire-prevention cushions; Management classification: Base and growth **Office equipment:** Principal products: Toner fixing and developing rollers; Management classification: Base **Medical and bioprocess:** Principal products: Catheter parts, silicone tubing, single-use assemblies; Management classification: Growth **Packaging and food service:** Principal products: PVC wrap, colour wrap; Management classification: Base **Factory automation and robotics:** Principal products: Functional compounds for cable coating; Management classification: Base **Construction and infrastructure:** Principal products: Corrugated sheets, sealants, repair materials; Management classification: Base **Advanced materials:** Principal products: Conductive polymers, heat-resistant thin films; Management classification: Growth

Heraeus is a family-owned German technology group that turns materials science into positions in precious metals, medical technology, semiconductor and electronics materials, and industrial measurement. Its headline revenue of EUR 43.2 billion in FY2025 is dominated by pass-through precious metal trading, so management steers the business on revenue excluding precious metals of EUR 2.83 billion, which places it among mid-sized specialty materials groups. Within the semiconductor supply chain it supplies packaging materials such as bonding wire, solder and sinter pastes, high-purity quartz and ceramic components for fab equipment, conductive polymers, and precious metal recycling and refining that returns metal from electronics and semiconductor scrap. Its strategic strengths are a low-leverage balance sheet, long-term family ownership and a position across the entire precious metal cycle. Its central challenge is restoring trust after customer-detrimental irregularities at its Hanau recycling operation, which remain under criminal investigation. In its FY2025 Financial Report, Heraeus describes itself as "a family-owned global technology group headquartered in Hanau", with roots in a family pharmacy dating to 1660 and a position as one of the leading providers in its global sales markets. These markets include electronics, semiconductors, telecommunications, automotive, chemicals, medical technology, pharmaceuticals and steel. Activities are bundled in four Business Areas: Precious Metals, Healthcare, Semiconductor & Electronics, and Industrials. Heraeus Holding sets overarching strategy, and "preserving the long-term independence of the Group" has priority in all corporate decisions. Independently characterized, Heraeus is two businesses reported as one. The first is a high-volume, low-margin metal flow: trading, hedging, leasing, refining and recycling, where revenue moves with metal prices and volatility. Group revenue rose 46.9% in FY2025 mainly for this reason. The second is a portfolio of specialty franchises with strong technical barriers: bone cement, contract manufacturing of medical components, quartz glass, electronic materials and steel sensors. Metal revenue is why the Group's EBIT margin on total revenue (about 1%) carries no information. The margin on revenue excluding precious metals, 15.8% in FY2025, is the meaningful measure. The revenue model is overwhelmingly product-based, with service-like income in precious metals. Recycling revenue is recognized over time until the customer is reimbursed for its metal, and it includes non-cash consideration: reclaimed metal that remains with Heraeus after agreed quantities are returned. That consideration was EUR 178.1 million in FY2025 and is the largest single explanation for the Precious Metals revenue jump. Heraeus does not disclose subscription or licensing revenue, and the FY2025 report says total service proceeds within revenue are insignificant. **Value-chain position:** Characterization: Mid-chain: buys processed metals and chemicals, sells semi-finished materials and components to OEMs and Tier 1 suppliers; in precious metals it spans refining, trading, processing and recycling **Customer types:** Characterization: Mining houses, refiners, banks and investors; chemical and pharmaceutical producers; semiconductor device, packaging and equipment makers; fiber manufacturers and hyperscalers; hospitals and medical OEMs; steel and foundry producers **End-markets:** Characterization: Electronics, semiconductors, telecommunications and AI data centers, automotive, chemicals, hydrogen, aerospace propulsion, pharmaceuticals, medical technology, steel, luxury and investment metals **Precious metals value-chain stages:** Characterization: Six stages: raw material extraction, refining, trading and administration, processing, use phase, recycling; Heraeus operates in four of them **Revenue types:** Characterization: Metal trading and metal-bearing product revenue; revenue excluding precious metals from products and services; recycling fees and non-cash metal consideration Semiconductor exposure sits mainly in Semiconductor & Electronics (EUR 793.6 million revenue excluding precious metals in FY2025), through Heraeus Electronics, Heraeus Covantics, Heraeus Epurio and Heraeus Printed Electronics, with a second leg in Precious Metals through probing alloys and recycling. In the recycling market, the company takes in precious-metal-bearing materials from electronics, including powders, pastes and production residues from sectors such as LEDs, photovoltaics and passive components. It operates 12 recycling facilities in eight countries, including associated companies.