Sansha Electric manufacturing Co.,Ltd.

Business Details

This segment manufactures and sells diode, thyristor, and triac module products as well as discrete products. Its main customers are domestic and overseas industrial inverters, elevators, and consumer equipment manufacturers, and it also focuses on the development of SiC, a next-generation compound semiconductor. Sales are conducted globally through the Company, Sanrex Corporation, and Sansha Electric (Shanghai) Co., Ltd., among others. In FY2026 (ending March 2026), prolonged inventory adjustments among customers and slowing growth in the Chinese market continued, and although Power Module sales declined, sales of discretes and chips grew, resulting in an overall increase in segment revenue.

Recent Overview

Revenue increased and losses narrowed, but higher fixed costs and an impairment loss weighed on earnings

Net sales for FY2026 (ending March 2026) rose to ¥6,368 million (up 8.6% year on year), turning to an increase in revenue. While sales of discretes and chips grew, the flagship Power Module saw a decline in sales due to prolonged inventory adjustments among customers and slowing growth in the Chinese market. The segment loss narrowed to ¥639 million (compared with a loss of ¥731 million in the prior period), but was affected by decreased profit from inventory reduction and other factors, higher personnel expenses, increased depreciation and amortization from capital expenditures (¥521 million), and an impairment loss of ¥192 million recognized on certain fixed assets. Customer demand has shown a recovery trend since the fourth quarter of FY2026 (ending March 2026).

Key Products

Growth Drivers

• Expansion of sales channels in the high-efficiency, high-voltage field through SiC product chip improvements and expanded product lineup
• Establishment of technology for large-capacity devices to capture infrastructure-related demand (data centers, renewable energy, energy storage)
• Recovery trend in customer demand that became apparent from the fourth quarter of FY2026 (ending March 2026)
• Continued growth in discrete and chip sales
• Acceleration of initiatives toward the final year of the medium-term management plan "CF26" and mid-to-long-term expansion of power semiconductor demand accompanying growing carbon neutrality needs

Risks

• Continued sluggish demand for the flagship Power Module due to prolonged inventory adjustments among customers (particularly slowing growth in the Chinese market)
• Increased depreciation and amortization from capital expenditures (¥521 million in FY2026, ending March 2026) continuing to pressure profitability
• Risk of impairment losses on fixed assets in the Semiconductor Business and at overseas subsidiaries (¥192 million recognized in FY2026, ending March 2026)
• Uncertainty in overseas demand due to the sluggish real estate market in China and geopolitical risks
• Concerns over a global economic slowdown and more cautious private-sector capital investment due to U.S. trade policy (tariffs)