Management Policies
Management Policies, Business Environment, and Issues to Address, etc.
Forward-looking statements herein are based on the Group’s judgement as of the end of fiscal year 2024 under review.
1. Basic Management Policies
Based on the management philosophy of “always aiming to become the world’s No. 1 silicon wafer manufacturer by exceeding the expectations of our customers and stockholders, by promoting the welfare of our employees, and by contributing to society,” the Group has developed advanced technological capabilities that lead the world and the ability to roll out a wide range of products in manufacturing high-quality large- to small-diameter silicon wafers used in semiconductor devices. By taking full advantage of these strengths to create a stable supply capability, the Group seeks to contribute to the advancement of society. In particular, the Group focuses on improving its technological capabilities to meet its customers’ stringent requirements for quality and cost, promoting higher precision silicon wafers to support the evolution of various types of semiconductors. Through these efforts, the Group will try to maintain and improve its position in the silicon wafer industry and carry out CSR and sustainability promotion activities based on the SUMCO CSR Policy, considering it our corporate social responsibility to value all stakeholders, including customers, stockholders, business partners, employees, and the global environment and society as a whole.
Under these basic policies, the Group is committed to further strengthening its business foundations and meeting its mandate from stakeholders, aiming for sustainable growth of its business.
2. Targeted Management Indicators and Medium- to Long-Term Management Strategies
Despite factors that could cause short-term fluctuations, the semiconductor silicon wafer market is expected to grow in the medium to long term with the semiconductor market’s growth on the back of an increase in data communication volume, development of generative AI technology, the spread of HEVs and EVs, progress in driverless driving, and technological innovation such as digital transformation (DX). In particular, demand for 300 mm wafers for leading-edge semiconductors, one of the Group’s strengths, is expected to continue to grow. Demand for 200 mm silicon wafers is projected to moderately recover in the medium to long term, mainly for automotive and power semiconductors. For demand for 150 mm and smaller wafers, however, its market is likely to shrink in the future.
In this business environment, the Group, for its mainstay of products, 300 mm wafers, will focus on technology development and investment in modernization to meet the demand related to the rapid growth of AI. The Group is also determined to modernize its manufacturing facilities for legacy products, for which demand recovery has been delayed, giving all due consideration to their economic rationality.
As for wafers of 200 mm or smaller, the Group will reorganize an appropriate production system that is commensurate with the market environment.
Given that semiconductor silicon wafers are part of business areas with a volatile market environment, the Group will continue making efforts to enhance cost competitiveness and improve profitability, as well as working on building business foundations that can promptly and effectively optimize management resources responding to changes in the demand environment.
3. Business Environment and Issues to Address
The current market of 300 mm silicon wafers for semiconductors is being driven by strong AI demand, and sales of leading-edge products, primarily for data centers, are performing favorably. Meanwhile, customers continue to adjust inventories of non-leading-edge products, and a recovery is expected to take time. Overall, the market has been experiencing a gradual recovery. In the market for silicon wafers of 200 mm and smaller, shipments continue at a slow pace as demand for their end products remains weak.
Under these circumstances and amid accelerating technical innovation, the SUMCO Group, on the way to realizing the SUMCO Vision, will move quickly to modernize manufacturing equipment in existing plants and to strengthen its capacity to supply 300 mm leading-edge wafers for which demand is expected to grow. At the same time, we will reorganize the production of small-diameter wafers, employ AI to raise productivity, and otherwise strengthen initiatives for ensuring profitability. We will also continue paying close attention to the impact on the market environment of geopolitical risks and the policies of individual countries, endeavoring to minimize such risks.
Moreover, the Group is promoting initiatives related to sustainability and has identified issues it will address on a priority basis as materiality (key issues). These issues are intended to resolve social issues and enhance corporate value in a sustainable manner. The Group will further accelerate its activities to achieve medium-to-long term goals for promotion of the active participation of women, carbon neutrality, human resources development, etc.
<SUMCO Vision>
- World’s Best in Technology
- Stable Profitability Even During Economic Downturns
- Empower Employee; Awareness of Profit
- Competitiveness in Overseas Markets