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Sumco forecasts net loss of 11.7 billion yen due to costs of new wafer plant construction
Monday, February 9, 2026 at 02:57 AM
Japanese wafer manufacturer SUMCO reported a net loss of 11.7 billion yen for the fiscal year ending December 2025, primarily attributed to the significant capital expenditures and depreciation costs associated with constructing new silicon wafer production facilities.
Context
SUMCO is navigating its first net loss in 14 years, with a projected 16.9 billion yen deficit for the fiscal year ending December 2025. Despite surging demand for AI-driven semiconductors, the silicon wafer leader is facing a severe squeeze from 116.8 billion yen in annual depreciation costs and a persistent slump in legacy 200mm wafers. This "AI paradox" stems from massive capital investments made during the recent chip shortage, which are now weighing on margins while mature markets for automotive and consumer electronics remain oversupplied and inventories high.
To drive a recovery, SUMCO is executing a structural reorganization that includes shuttering its Miyazaki production facility by 2026. The strategy shifts focus toward high-margin 300mm wafers for AI servers, where monthly demand is expected to reach 1 million units by 2027. While 2025 remains a transition year with a projected 4.2 billion yen operating loss, the company aims to restore profitability through new long-term agreements starting in 2026 that secure higher pricing for advanced products.
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