Shin-Etsu Chemical Reports 11% Increase in Net Profit Amid Strong AI Demand
Written with artificial intelligence.
Shin-Etsu Chemical Industries announced a net profit of 286.9 billion yen for the first half of fiscal 2026, marking an 11% increase year-on-year. The surge in demand for artificial intelligence (AI) has significantly boosted sales of semiconductor materials, including silicon wafers and photoresists.
Financial Performance Overview
On October 27, Shin-Etsu Chemical Industries released its consolidated financial results for the first half of fiscal 2026, ending September 2026. The company reported a net profit of 286.9 billion yen, reflecting an 11% increase compared to the same period last year.
Impact of AI Demand
The strong growth in revenue is largely attributed to heightened demand for semiconductor-related materials, driven by increased applications in artificial intelligence (AI). Key products that contributed to this performance include silicon wafers and photoresists.
During the earnings briefing, President Yasuhiko Saito highlighted that executives from customer companies have expressed a need for additional supply, emphasizing that increasing supply capacity is a top priority moving forward. This indicates a robust demand from semiconductor manufacturers that is expected to continue.