Arisawa Mfg. Co., Ltd.

Business Details

The segment's mainstay products are materials for flexible and rigid printed wiring boards and glass cloth for printed wiring boards. Manufacturing and sales are handled group-wide by Taiwan subsidiary Xin Yang Technology Co., Ltd., glass cloth manufacturer Arisawa Fiberglass Co., Ltd., and rigid printed wiring board manufacturer Sato Sen Co., Ltd. The segment targets the smartphone, semiconductor, next-generation computing, and next-generation mobility fields as key markets, differentiating itself through the development of high-performance materials using proprietary resin formulation and coating technologies. This is the core business, accounting for approximately 64% of the group's total net sales.

Recent Overview

Strong performance with net sales up 14.0% and profit up 24.7%, driven by increased demand for smartphones and semiconductors.

In the Electronic Materials segment for FY2026 (ending March 2026), net sales of materials for flexible printed wiring boards and glass cloth for printed wiring boards increased, resulting in net sales of ¥35,882 million (up 14.0% year on year) and segment profit of ¥3,558 million (up 24.7% year on year). The main driver was growing demand for smartphones and semiconductors (for PCs and AI servers). As a subsequent event, the company established a wholly owned subsidiary, Arisawa Manufacturing America Inc. (capital of USD 4,500 thousand), in California, USA, establishing a foothold for entry into the U.S. market for electronic materials. Capital expenditures expanded significantly, roughly 3.7 times year on year, to ¥4,546 million, reflecting active investment in expanding production capacity.

Key Products

Growth Drivers

• Increased orders for materials for flexible printed wiring boards driven by growing demand for smartphones and semiconductors (for PCs and AI servers)
• Expanded orders for multifunctional mobile devices on a group-wide basis, including Taiwan subsidiary Xin Yang Technology Co., Ltd.
• Improved cost efficiency through enhanced production capacity and higher utilization rates driven by large-scale capital expenditures (¥4,546 million in FY2026, ending March 2026)
• Entry into the U.S. market for electronic materials through the establishment of a new subsidiary, Arisawa Manufacturing America Inc., in California, USA
• Development and expanded sales of new products for the semiconductor, data center, next-generation computing, and next-generation mobility fields

Risks

• Risk of demand fluctuations in the smartphone and semiconductor markets (sharp decline in sales in the event of market deterioration)
• Dependence risk on the Chinese market (economic slowdown due to the real estate downturn and geopolitical risks)
• Risk of impact from U.S. trade policy (tariffs, etc.) (new country risk associated with entry into the U.S. market)
• Foreign exchange risk (impact on sales and profit from yen depreciation or appreciation)
• Risk of reduced profitability due to price and technology competition with competitors
• Risk of increased fixed costs associated with large-scale capital expenditures (deteriorating profitability in the event of a demand downturn)