Miraial Co., Ltd.

Demand for the company's core product, the 300mm silicon wafer shipping container "FOSB," is directly linked to silicon wafer production and shipment volumes, and given the high proportion of this product in overall sales, fluctuations in wafer production volume directly affect business performance. In addition, there is a risk that an increase in the number of reuse cycles by device manufacturers could depress demand for containers. As a countermeasure, the company is expanding into other fields by leveraging its core technologies, such as expanding its line of high-performance resin products.

Major customers for Silicon Wafer Shipping Containers are concentrated among silicon wafer manufacturers, and since no long-term supply contracts have been concluded, there is a risk that changes in major customers' purchasing policies could directly impact business performance. Although transaction relationships have remained stable since business began, there continues to be no contractual protection regarding volume or pricing. The company is working to maintain stable transactions through improved product functionality and expansion of the customer base.

While the FOSB market is expanding along with growth in the semiconductor market, there are concerns about an increase in new entrants and intensifying competition with other companies in the same industry. Technological progress in the semiconductor industry is rapid, and depending on the success or failure of production technology development and production process efficiency improvements, the competitive advantage of the company's products could decline, potentially affecting business performance. As a countermeasure, the company is promoting production technology development and improving production process efficiency with the aim of enhancing product functionality and maintaining price competitiveness.

Many of the company's products use petrochemical products as raw materials, so fluctuations in crude oil prices and transportation costs affect raw material prices and thereby influence business performance. In addition, some products use custom grades from specific raw material manufacturers, and if problems arise in the supply system, there is a risk that securing alternative grades or switching suppliers could take time. The company is taking countermeasures by promoting the evaluation of alternative grades and products from other manufacturers, and by securing a certain amount of inventory.

Many key raw materials are sourced from a single specific raw material manufacturer, and no long-term supply contract has been concluded. If that company changes its sales policy or if problems arise in its supply system, stable procurement of raw materials could become difficult, potentially affecting business performance. Although the transaction relationship remains stable, the lack of contractual supply guarantees constitutes a structural risk.

Multiple geopolitical risks continue to exist, including import/export restrictions and tariff increases stemming from US-China tensions, the situation in Russia and Ukraine, conflict in the Middle East, and tensions in the Taiwan Strait. If these risks materialize or become prolonged, they could lead to surges in raw material and energy prices, supply chain disruptions, logistics disruptions, and suspension of remittances, potentially hindering business activities. The company is responding through continuous monitoring of international conditions, development and strengthening of its business continuity plan (BCP), and strengthening supply chain resilience.

Since some products are produced intensively at dedicated plants, there is a risk that production of those products could be halted if a natural disaster such as an earthquake occurs. In addition, the spread of new infectious diseases could disrupt the continuity of production, logistics, and sales activities. The company is strengthening prevention of the spread of infectious diseases through measures such as independently locating the same production line across multiple factory buildings, and through thorough hygiene management and countermeasure manuals.

Although the company has adopted the ISO9001 quality management system and works to prevent the occurrence and outflow of defects, it is difficult to completely eliminate the possibility of claims arising. If a large-scale claim or a situation leading to product liability occurs, compensation and countermeasure costs could arise, potentially affecting business performance and brand reputation. The company has taken out product liability (PL) insurance with respect to product liability compensation.

Securing specialized personnel in manufacturing, technology, and sales is essential for developing high-value-added products and expanding business, but if the company is unable to recruit and train such personnel in a timely manner, this could hinder business performance and operations. Against the backdrop of a declining working-age population due to the falling birthrate and aging population, there is also a risk that it will become difficult to secure the personnel necessary to maintain and expand production. The company is responding through labor-saving automation of production and by utilizing diverse employment forms and recruitment methods.

Capital expenditures and R&D expenses incurred in advance for new product development, production capacity expansion, and maintaining competitiveness could, if product demand falls significantly below expectations, result in excessive depreciation burden, equipment disposal, and impairment losses, potentially affecting business performance. There is also a risk of deteriorating business performance in R&D activities if a business fails to become viable after the investment of expenses. The company is working to avoid such risks through appropriate deliberation and approval procedures, but complete elimination of the risk is difficult.