TOREX SEMICONDUCTOR LTD.
6616・Prime Market・Electric Appliances
Japan
The most important segment, accounting for approximately 69% of group sales. Responsible for domestic development, manufacturing, and sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (full year, external customers) | ¥17,373 million | ¥16,577 million | ↑ |
| Segment profit (full year) | ¥837 million | -¥863 million | ↑ |
| Depreciation and amortization | ¥1,866 million | ¥2,351 million | ↓ |
| Increase in tangible and intangible fixed assets | ¥2,194 million | ¥2,837 million | ↓ |
| Segment assets | ¥33,187 million | ¥31,189 million | ↑ |
Business Details
Comprised of Torex Semiconductor Ltd. and Phenitec Semiconductor Corporation. The former develops and sells Analog Power ICs (DC/DC Converter, Regulator, Detector, etc.), while the latter is responsible for front-end wafer manufacturing and sales of Discrete products (transistors, diodes, IGBTs, etc.). The Japan segment also manages outsourced manufacturing partners, building a structure that leverages the advantages of both the fabless model and in-house manufacturing. In FY2026 (ending March 2026), increased sales for industrial equipment applications drove a turnaround to profitability from a substantial loss in the prior period.
Recent Overview
Increased sales for industrial equipment applications drove a turnaround to profitability from a substantial loss in the prior period.
In FY2026 (ending March 2026), Japan segment sales were ¥17,373 million (up 4.8% year on year), and segment profit was ¥837 million (versus a segment loss of ¥863 million in the prior period), a substantial improvement. The main driver was increased sales for industrial equipment applications. The impairment loss of ¥1,116 million recorded in the prior period was zero in the current period, normalizing the earnings structure. In addition, the company has entered into an agreement to transfer a 95% equity stake in TOREX VIETNAM SEMICONDUCTOR CO., LTD. for the purpose of a business alliance with PANJIT INTERNATIONAL INC., and procedures are underway. At Phenitec Semiconductor, an update to core systems is being advanced (software in progress increased by ¥657 million).
Key Products
Growth Drivers
- Expansion of sales of high-value-added products for the three priority fields of industrial equipment, automotive equipment, and medical equipment (tailwinds from IoT, automation, and EV trends)
- Synergy effects with Phenitec Semiconductor (joint efforts in the power semiconductor business, cost reduction, and quality improvement collaboration)
- Increase in foundry outsourcing orders from Asian companies due to the China-plus-one strategy
- Gradual recovery of the semiconductor market as inventory adjustments are largely resolved (boosting demand for industrial and medical equipment)
- Improvement of earnings structure and operating margin through continued cost control (reduction of SG&A expenses)
Risks
- Continued risk of procurement constraints for PC, smartphone, and consumer equipment components due to memory supply-demand tightness amid growing AI-related demand
- Risk of rising manufacturing costs due to soaring material costs, including gold (a challenge across the semiconductor manufacturing sector)
- Risk of additional impairment losses on fixed assets such as Phenitec Semiconductor plants (concern about recurrence of the ¥1,116 million recorded in the prior fiscal year)
- Risk of delayed recovery in demand for Asia due to continued weakness in the Chinese market
- Risk of adverse effects on the real economy and downside risk to semiconductor demand due to geopolitical risks (Middle East situation, changes in trade policy)
- Risk of increased investment burden and operational transition risk associated with the core system update (Phenitec Semiconductor)
Last updated: June 23, 2026