As always, I am deeply grateful to you, our shareholders and investors, for your continued support of SUMCO.

The semiconductor and silicon wafer market today is at a time of major changes, both in technology and in the market structure itself.
In response to trade issues stemming from U.S. policy moves, China has taken protective measures for semiconductors, turning to domestic production of commodity chips among the semiconductors it consumes. As a result, our customers who manufacture commodity products are being hard hit by rising Chinese self-sufficiency. While continued strong demand growth is expected for leading-edge wafers used in AI, non-leading-edge wafers such as those for automotive and consumer electronics uses have been slow to recover, impacted both by customer inventory drawdown and the above-noted increase in Chinese production.

In this challenging situation, we are shifting our focus from quantity to quality, aligned to the changes in market structure. By reallocating our management resources, we will carry out business restructuring, seeking to make our strong areas even stronger, while for areas that are weak, taking measures appropriate to the changing situation, aimed at further raising our corporate value.
As specific moves regarding 300 mm wafers, with the aim of agilely meeting the expected further increase in demand growth for leading-edge wafers, we are going ahead steadily with the launching of new plant facilities, and at the same time converting manufacturing equipment in existing plants from that for non-leading-edge wafers to the latest equipment for leading-edge wafers. In the case of 200 mm and smaller wafers, we will reorganize production, acting to improve efficiency and profitability.

The current market recovery has been slow, affected by the slowness of customer inventory normalization along with geopolitical risks. Silicon wafers, however, are a growth industry. We will continue as always to differentiate our products through technology development, based on the SUMCO vision of being the “World’s Best in Technology.”
In terms of our financial underpinnings, adaptability to market conditions, and agility, the Group is well equipped for dealing with such a widely fluctuating market environment. We will accelerate our structural reform efforts toward ensuring growth when the market reaches the next recovery stage.

We have set an interim dividend amount of 10 yen per share for the fiscal year ending December 2025, based on an overall consideration of such factors as the profit levels in this interim period, the outlook for the second half and beyond, funding needs for capital investment, free cash flow, EBITDA, and the status of dividend payment funds. This brings total dividends to 3.5 billion yen.
As we continue paying close attention to the economic environment for the Group and earnings status, along with funding needs and industry trends, we remain committed to providing our shareholders with appropriate return in keeping with the situation.