MARUWA CO.,LTD.

Business Details

The core segment engaged in the production and sale of electronic components, ceramic substrates, and semiconductor manufacturing equipment-related components. The segment offers High Thermal Conductivity Substrates / High Strength Substrates, specialty ceramic substrates, Semiconductor Equipment Components / High-Purity SiC Products, Automotive Ceramic Products, Information & Communication Products / Antenna Products, and Noise Suppression Products. In addition to domestic manufacturing sites, production takes place in Malaysia (Maruwa Malaysia, MARUWA MELAKA), while subsidiaries in Taiwan, Europe, the United States, Korea, China, and India handle sales. This core business accounts for approximately 86% of consolidated net sales and supplies high value-added, differentiated products for next-generation high-speed communications, new energy vehicles, and generative AI-related semiconductors.

Recent Overview

Next-generation high-speed communications remained at a high level, with substantial production increases in Q4; however, weak automotive demand and delayed recovery in general-purpose memory led to a decline in profit margin.

In FY2026 (ending March 2026), demand related to next-generation high-speed communications remained at a high level throughout the fiscal year, and with the launch of next-generation models, substantial production increases began from the fourth quarter, achieving record quarterly net sales and profit. On the other hand, weak market conditions in the automotive segment coincided with a delayed recovery in demand for general-purpose memory applications, causing segment profit to decline to ¥24,573 million (down 9.3% year on year) and the profit margin to fall to 38.5% (from 43.3% in the previous fiscal year). A decline in yield also occurred during the launch of some new products, but prospects for resolution are now in place for all of these issues. Capital expenditure expanded significantly, with the increase in property, plant and equipment and intangible assets reaching ¥20,948 million (compared with ¥8,854 million in the previous fiscal year).

Key Products

Growth Drivers

• Further expansion of demand for next-generation high-speed communications (next-generation models) and strengthened production capacity through the new building at the Seto Plant
• Full-scale expansion of demand related to general-purpose memory from the second half of FY2027 (ending March 2027), supported by the new building at the Miharu Plant
• Increased demand for semiconductor manufacturing equipment components driven by growing investment related to generative AI
• Share expansion through differentiated products in the new energy vehicle market and profitability improvement through productivity gains and AI utilization
• Continued proactive capital expenditure (construction in progress of ¥16,351 million) toward the medium-term plan targeting net sales of ¥100 billion by FY2028

Risks

• Risk of delayed full-scale recovery related to general-purpose memory (possible recurrence of timing delays)
• Risk of yield decline during the launch of new products for next-generation high-speed communications
• Continued weakness in automotive-related market conditions and risk of slowing growth in the new energy vehicle market
• Demand fluctuations due to U.S. tariff policy and geopolitical risks (situations in Ukraine and the Middle East)
• Foreign exchange risk (impact on ordinary income and below, assumed rate of ¥153 to the dollar)
• Risk of increased fixed costs and lower utilization rates associated with large-scale capital expenditure (construction in progress of ¥16,351 million)