ENVALITH
株式会社シキノハイテック logo

Shikino High-Tech CO.,LTD.

6614・Standard Market・Electric Appliances

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株式会社シキノハイテック logo
Shikino High-Tech CO.,LTD.6614

Business

Shikino High-Tech Co., Ltd. is a semiconductor-focused manufacturer headquartered in Uozu City, Toyama Prefecture. Its business is composed of three segments: the Electronic Systems Business (semiconductor test equipment such as Burn-in Systems and test boards), the Microelectronics Business (LSI design contracting and IP core sales), and the Product Development Business (industrial cameras and image processing systems). Its major customers include semiconductor manufacturers such as Sony Semiconductor Solutions, as well as customers in the automotive and data center sectors. The company primarily operates a direct sales system, providing sales, design, and maintenance services from multiple locations nationwide. It listed on the Standard Market of the Tokyo Stock Exchange in 2021, and its strength lies in its integrated production system based at its domestic in-house factory.

Business Model

In the Electronic Systems Business, revenue is generated through the development, manufacturing, sales, and rental of Burn-in Systems and Burn-in Boards. In the Microelectronics Business, revenue combines LSI design contracting (analog and digital) with licensing and royalty income from in-house developed IP cores. In the Product Development Business, the company develops, manufactures, and sells industrial cameras and image processing systems. Across all businesses, the company builds close relationships with customers primarily through direct sales, and its ability to provide integrated support from design through manufacturing and evaluation serves as a key differentiating factor.

Company Strengths

The company has built an in-house system covering everything from the design of burn-in systems and boards to manufacturing, evaluation, and test program creation. With the Uozu Plant, the Second Plant (operational since 2023), and the Fukushima Office, the company achieves high reliability and stable supply through integrated production at its domestic in-house plants. This is substantiated by the significant increase in orders for custom burn-in boards for image sensors in FY2026 (ending March 2026).

The company has established design and evaluation technologies in both the analog LSI field (power ICs, high-speed interfaces, image sensors) and the digital LSI field (image processing, high-speed interfaces), and maintains an integrated design system covering circuit design, layout, characteristics evaluation, and test program creation. It also licenses its in-house developed IP Cores (JPEG, MIPI, ISP), achieving a composite revenue structure combining design contracting and IP royalties.

Building on image processing technology cultivated through ASIC development, the company develops and manufactures Industrial Embedded Cameras and Image Processing Systems in-house. Through an integrated production system at its domestic in-house plants equipped with dedicated clean rooms, the company achieves high reliability and stable supply over the medium to long term. It has a track record of deployment across diverse applications, including overseas ATMs, defense, drones, and amusement.

ENVALITH's Perspective

Following a net loss of ¥15 million in FY2025 (ended March 2025), the net loss widened to ¥110 million in FY2026 (ending March 2025). Net assets stood at ¥2,292 million (down ¥179 million year-on-year), and the equity ratio declined from 45.7% to 39.7%. Short-term borrowings increased by ¥800 million to ¥1,000 million, while cash and cash equivalents plunged from ¥557 million to ¥218 million. Operating cash flow was sharply negative at ¥-961 million, raising concerns about a decline in financial flexibility.

The Electronic Systems Business posted a segment operating loss of ¥182 million (a sharp deterioration from ¥-29 million in the prior period), and the Product Development Business also worsened to ¥-128 million (from ¥-83 million in the prior period), with both segments seeing widened losses. External factors included the prolonged inventory adjustment for automotive-related semiconductors combined with the impact of U.S. reciprocal tariffs. The company forecasts a return to profitability in FY2027 (ending March 2027), projecting net sales of ¥6,709 million, operating profit of ¥117 million, and net income of ¥82 million; however, the timing of a recovery in the automotive market remains uncertain, making the achievability of this forecast the most important point to watch.

Contract assets at the end of FY2026 (ending March 2026) rose sharply to ¥1,278 million from ¥478 million at the end of the prior period. This reflects an accumulation of balances from ongoing projects prior to revenue recognition, but at the same time, the provision for loss on order received also increased from ¥35 million to ¥52 million, suggesting a deterioration in profitability on some projects. In the Product Development Business, there have been successive delays in the start of mass production and revisions to plans, requiring continuous monitoring of the recoverability of contract assets and the risk of additional loss recognition.

Growth Strategy

Aiming for renewed growth through a complete break from the loss-making cost structure and concentrated investment in growth areas

Development and production of custom burn-in systems for high-power LSIs was completed in FY2026 (ending March 2025). Orders for custom burn-in boards for image sensors increased significantly in the same period, and a framework to capture expanding AI and data center demand (external environment) is being put in place.

Power IC design contracting for powertrain applications has been trending steadily, with several repeat orders secured from overseas customers. Toward the end of the period, an order for a large digital LSI development project for smart glasses is expected to materialize, which should help restore the utilization rate of the digital division.

Development of derivative products based on the JPEG XL-IP image compression technology released in FY2025 (ended March 2025) has begun, with sales planned to start in the first half of FY2026 (April to September 2026). While mobile-related royalties remain steady, delays in licensing deals remain a challenge, making the acquisition of new licenses through derivative products key to diversifying revenue.

An improved version of the Monitoring System, featuring enhanced integration with nursing care software and improved usability, is planned for market launch in FY2027 (ending March 2027). Orders for equipment for defense, amusement, and drones for public facility inspection exceeded plan in FY2026 (ending March 2025), and are expected to contribute to revenue from the following fiscal year onward.

Under the FY2026 management policy of "complete escape from the loss-making cost structure," the company is implementing concrete profit-focused measures, promoting the elimination of operational waste and greater efficiency, and continuing to invest in human resource development. Selling, general and administrative expenses came to ¥1,131 million in FY2026 (ending March 2025), a reduction of ¥109 million from ¥1,240 million in the previous period, showing some results.

Last updated: July 19, 2026