STELLA CHEMIFA CORPORATION

Business Details

This segment manufactures and sells multi-use fluoride products, primarily ultra-high-purity etchants and cleaning agents for semiconductor devices, along with neutron absorbers (concentrated boric acid) for nuclear-related facilities, tantalum production aids for tantalum capacitors, and catalysts for pharmaceutical and chemical intermediates. Its main customers are semiconductor manufacturers in Japan and overseas, with high quality and a stable supply system serving as the source of competitiveness. The main raw material, anhydrous hydrofluoric acid, is primarily sourced from China, exposing the segment to raw material price fluctuation risk.

Recent Overview

Driven by the semiconductor division amid robust AI-related demand, both sales and operating profit posted modest increases

In FY2026 (ending March 2026), the High-Purity Chemicals business recorded sales of ¥31,786 million (up 0.8% year on year) and operating profit of ¥3,592 million (up 1.3% year on year). Against a backdrop of robust AI-related demand, shipment volume in the semiconductor division increased, with sales in the semiconductor division reaching ¥22,204 million (up 5.8% year on year). Shipment volume in the electronic materials division also increased. On the profit side, in addition to the increase in sales, profitability improved as a result of passing on raw material price increases to sales prices. A change in the estimate of asset retirement obligations at a Singapore subsidiary had a negative impact of ¥53 million on operating profit.

Key Products

Growth Drivers

• Increased shipment volume in the semiconductor division driven by robust AI-related demand (semiconductor division sales of ¥22,204 million in FY2026 (ending March 2026), up 5.8% year on year)
• Expansion of overall High-Purity Chemicals business sales due to increased shipment volume in the electronic materials division
• Improved profitability through implementation of sales price pass-through in response to rising raw material prices
• Increased sales in the semiconductor division, mainly overseas (expected to continue in the FY2027 (ending March 2027) forecast)
• Increasing sales expansion opportunities against a backdrop of expanding investment plans by semiconductor manufacturers in Japan and overseas
• Continued growth investment under the 4th Medium-Term Management Plan (FY2026–FY2028, ending March 2026–2028) (capital expenditure of ¥4,006 million in FY2026 (ending March 2026))

Risks

• Risk of rising procurement costs due to increases in Chinese market prices and yen depreciation, as anhydrous hydrofluoric acid, the main raw material, is primarily sourced from China (the FY2027 (ending March 2027) forecast anticipates a rise in anhydrous hydrofluoric acid prices)
• Risk of rising anhydrous hydrofluoric acid prices due to tightening sulfuric acid supply-demand and price surges caused by the Middle East situation (impact of the Strait of Hormuz closure), which is not incorporated into the earnings forecast
• Risk of fluctuations in shipment volume and sales due to changes in semiconductor market conditions
• Country risk arising from concentrated sales to China in the energy sector (concentrated boric acid)
• Impact on demand and the supply chain from uncertainty in U.S. trade policy and geopolitical risk
• Risk of price pressure due to intensifying competition with other companies