TOKYO ELECTRON DEVICE LIMITED
2760・Prime Market・Wholesale Trade
Semiconductors and Electronic Devices Business
Core segment handling sales of semiconductors/electronic devices and manufacturing of PB products
| Period | Current | Previous | Change |
|---|---|---|---|
| External customer sales (full year) | ¥162,543 million | ¥179,051 million | ↓ |
| Segment profit (ordinary income) (full year) | ¥3,208 million | ¥6,149 million | ↓ |
| Segment profit margin (ordinary income margin) | 1.97% | 3.43% | ↓ |
| Orders received (full year) | ¥181,945 million | up 40.7% year on year | ↑ |
| Order backlog (fiscal year end) | ¥90,913 million | up 27.1% year on year | ↑ |
| Purchases (full year) | ¥141,031 million | down 7.8% year on year | ↓ |
| Segment assets | ¥119,610 million | ¥117,505 million | ↑ |
Business Details
This segment sells semiconductor products (analog ICs, processors, logic ICs, memory ICs), boards and electronic components, and software/services, and also manufactures and sells private brand (PB) products. Major customers are leading electronics manufacturers, with broad deployment across automotive, industrial equipment, communications equipment, and consumer equipment applications. The segment maintains sales and marketing bases in Asia and North America and accounts for approximately 80% of group sales, making it the core business. Under VISION2030, the target is a 75% share of group sales composition and a segment ordinary income margin of 7% or higher.
Recent Overview
Sales and profit fell sharply on weak industrial equipment and PB sales, but orders are in a sharp recovery phase
For the full year ended March 2026, automotive semiconductors performed solidly on expanded customer business relationships, while sales to industrial equipment customers were affected by continued customer inventory adjustments, and PB product sales were subdued due to the prolonged adjustment in the wafer market, resulting in a significant decline in both sales and profit: external customer sales of ¥162,543 million (down 9.2% year on year) and segment profit of ¥3,208 million (down 47.8% year on year). Meanwhile, orders received sharply recovered to ¥181,945 million (up 40.7% year on year) and the order backlog rose to ¥90,913 million (up 27.1% year on year), reflecting steady progress in the drawdown of customer inventories across the supply chain. A shift toward a demand recovery phase is expected for the fiscal year ending March 2027.
Key Products
Growth Drivers
- Expansion of customer business relationships for automotive semiconductor products (long-term growth driven by increasing electrification and software-defined features in automobiles)
- Full-fledged recovery in semiconductor demand as supply chain inventory adjustments progress (orders received for the full year ended March 2026 up 40.7% year on year; order backlog up 27.1% year on year)
- Re-entry into a growth phase for production plans related to advanced-process semiconductor manufacturing equipment
- Strengthening of global expansion for the PB business centered on wafer inspection equipment
- Focus on growth markets such as industrial equipment, cloud services, and OT security
- VISION2030 target: segment sales composition of 75% and ordinary income margin of 7% or higher by the fiscal year ending March 2030
Risks
- Uncertainty over the pace of recovery in semiconductor sales to industrial equipment customers (variation in inventory conditions by customer)
- Risk of continued subdued PB product sales due to the prolonged adjustment in the wafer market
- Impact of memory and CPU supply shortages on production in industrial equipment and automotive-related applications
- Uncertainty over U.S. trade policy (tariffs) causing a stalling of corporate earnings recovery and supply chain disruptions
- Stagnation in the Chinese market and heightened geopolitical risk
- Risk of rising product prices and extended delivery times due to tight supply-demand balance for memory and other components amid expanding AI-related investment
Last updated: June 16, 2026