MEC COMPANY LTD.
4971・Prime Market・Chemicals
Japan
The Group's core manufacturing and supply hub, accounting for approximately 38.6% of consolidated net sales, making it the largest segment
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales to external customers (cumulative Q1) | ¥2,366 million | ¥1,595 million | ↑ |
| Segment profit (cumulative Q1) | ¥1,813 million | ¥646 million | ↑ |
| Segment profit margin (cumulative Q1) | 76.6% | 40.5% | ↑ |
| Inter-segment internal sales (cumulative Q1) | ¥2,068 million | ¥1,087 million | ↑ |
| Net sales to external customers (full year, prior year actual) | － | ¥7,827 million | ↑ |
| Segment profit (full year, prior year actual) | － | ¥4,302 million | ↑ |
Business Details
The domestic segment handled directly by MEC Company Ltd. itself. It manufactures and sells Chemicals for Electronic Substrates & Electronic Components (Adhesion Promoters, Etching Agents, etc.), with direct sales to domestic customers as well as sales to Korea via Japanese distributors. The CZ Series for semiconductor package substrates is the mainstay product, capturing wide-ranging demand from advanced semiconductor package substrates related to generative AI to general-purpose products. Inter-segment internal sales (to overseas subsidiaries) were also substantial at ¥2,067 million, reflecting the segment's role as a production and supply base for the entire Group.
Recent Overview
Rapid expansion in demand for advanced semiconductor package substrates related to generative AI drove sharp increases in Q1 net sales and profit
In the first quarter of FY2026 (ending December 2026) (January to March 2026), the Japan segment's net sales to external customers were ¥2,366 million (up 48.4% year on year), and segment profit was ¥1,813 million (up 180.5% year on year), both showing substantial increases. This was driven by expanding demand for products related to advanced semiconductor package substrates, including those related to generative AI, robust demand for high-performance smartphone-related products, and solid trends in memory semiconductor package substrate-related products sold to Korea via Japanese distributors. Inter-segment internal sales to overseas subsidiaries also increased substantially to ¥2,068 million from ¥1,087 million in the same period of the previous year, expanding the segment's role as the Group's supply base.
Key Products
Growth Drivers
- Expanding demand for advanced semiconductor package substrates for generative AI-related data centers
- Solid production trends for memory semiconductor package substrates destined for Korea
- Increased usage of the CZ Series driven by larger, higher-layer-count semiconductor package substrates
- Expanding demand for products for high-performance smartphones
- Expansion of sales to overseas customers (such as Korea) via Japanese distributors
- Increased internal supply to overseas subsidiaries amid expanding capital investment by electronic substrate manufacturers in Southeast Asia and other regions
Risks
- Fluctuations in electronic substrate market demand due to uncertainty in US trade policy and geopolitical risk
- Uneven demand by product depending on production trends for display-related products such as the SF Series
- Impact on profit margins from rising costs such as labor and shipping expenses
- Risk of future increased depreciation expenses associated with increased construction in progress (¥2,956 million) toward the operation of the Kitakyushu Plant (tentative name)
- Foreign exchange fluctuations (impact on internal transfer prices)
- Impact on raw material and logistics costs from rising crude oil prices amid escalating tensions in the Middle East
Last updated: March 23, 2026