To Our Shareholders and Investors
Let me first express my gratitude to our shareholders and investors for your continued support.
We are experiencing extremely lively demand for semiconductor silicon wafers of all sizes in view of the expansion of silicon contents in increasingly sophisticated smartphone functions, growing demand from data centers, in-vehicle installations, and the expansion of the Internet of Things (IoT). SUMCO continues to struggle to produce enough volumes of all wafer diameters to keep up with demand.
Given these healthy demand conditions, SUMCO has been negotiating with customers repeatedly and determinedly aimed at achieving more appropriate levels of pricing. We are pleased to say that these efforts are starting to have a gradual positive impact on the company’s business performance.
We expect the market for our flagship 300 mm silicon wafer products to expand even further going forward. Within that product segment, we estimate demand for high-precision wafers used in state-of-the-art semiconductor chips will increase the most, and demand/supply conditions will tighten even further due to the limited number of suppliers.
In view of these tight supply conditions, SUMCO has committed to fulfil its responsibility to supply 300 mm state-of-the-art semiconductor high-precision wafers, for which the company commands a high market share. To that aim, SUMCO has decided to use its own capital to fund increased monthly production of 110,000 wafers by around the first half of 2019 based on long-term sales contracts with customers.
In the current market environment the SUMCO Group is also committed to seeking to differentiate its products through consistent and aggressive development of leading-edge technologies, while continuing to promote improvements in productivity to strengthen its profit base.
We humbly ask you to support us in these latest measures to ensure sustainable future growth for SUMCO.
Mayuki Hashimoto, Representative Director
Chairman & Chief Executive Officer
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