KYOCERA CORPORATION

Business Details

Provides fine ceramic components, ceramic and organic packages (semiconductor-related components), automotive systems, optical components, medical devices, and more, globally, to semiconductor manufacturing equipment, information and communications, industrial machinery, and automotive-related markets. The segment is centered on two sub-segments: Fine Ceramic Components (Industrial & Automotive) and Semiconductor-Related Components. In FY2026 (ending March 2026), the segment swung to a large profit increase due to higher sales in the semiconductor-related components business, the effects of structural reforms, and a reduction in one-time losses compared to the prior period.

Recent Overview

Achieved business profit of ¥63,082 million on the back of a substantial increase in sales and a swing to profitability in semiconductor-related components

In the Core Components segment for FY2026 (ending March 2026), sales increased by ¥61,709 million (10.4%) year on year to ¥653,429 million, primarily driven by higher sales of Ceramic Packages for the information and communications-related market and of semiconductor-related components such as Organic Packages for data centers. Business profit improved substantially, swinging from a loss of ¥1,889 million in the prior period to ¥63,082 million. This was also aided by a reduction in impairment losses on property, plant and equipment, which shrank to approximately ¥10.0 billion in the current period (including write-downs of idle assets and impairment related to the former display business) from approximately ¥43.0 billion in the prior period. For the following fiscal year (FY2027, ending March 2027), sales are forecast at ¥654,000 million (roughly flat), and business profit is forecast at ¥80,500 million (margin of 12.3%), indicating a further improvement in profitability. Capital expenditures are planned to expand substantially toward the following fiscal year.

Key Products

Growth Drivers

• Increased sales of Organic Packages for data centers and Ceramic Packages for the information and communications-related market, driven by expanding AI and data center demand
• Improved profitability in the semiconductor components organic materials business due to the effects of structural reforms (business profit margin forecast at 12.3% for the following fiscal year)
• Substantial expansion of capital expenditures aimed at expanding share in advanced semiconductor and mobility markets (Core Components is a major recipient of the ¥225,000 million in capital expenditures forecast for the following fiscal year)
• Evolution of the business portfolio toward high-value-added custom products and Solutions centered on fine ceramic technology
• Improved capital efficiency and concentration of management resources in priority areas through the introduction of ROIC-based business evaluation

Risks

• Risk of additional one-time losses in the semiconductor components organic materials business (approximately ¥10.0 billion in write-downs of idle assets, etc. recorded again in FY2026, ending March 2026)
• Decline in business profit margin for Fine Ceramic Components (Industrial & Automotive) (from 9.6% to 7.5% in FY2026, ending March 2026) and an anticipated slowdown in the automotive-related market
• Risk of fluctuations in demand for Organic Packages for data centers and risk of rising cost ratios due to declining utilization of production facilities
• Impact on sales and profit from foreign exchange fluctuations (particularly further yen appreciation against the US dollar) (assumed rate for the following fiscal year: ¥150 to the US dollar)
• Impact on the supply chain and demand from geopolitical risks and changes in US trade policy
• Increased sensitivity to investment recovery risk and demand fluctuations associated with large-scale capital expenditures (¥225,000 million planned for the following fiscal year)