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Screen Holdings net profit drops 21 percent due to slowing semiconductor equipment demand in China
Friday, January 30, 2026 at 08:53 AM
SCREEN Holdings reported a 21 percent decline in net profit for the April to December 2024 period, primarily due to a reduction in orders from China following a period of surge demand.
Context
SCREEN Holdings reported a 21% year-over-year drop in net profit for the April-December 2025 period, as the company faced a significant slowdown in its core semiconductor production equipment (SPE) business. Consolidated revenue fell 7.5% to 425.3 billion yen, while operating profit saw a sharper decline of 23% to reach 77.4 billion yen. This downturn represents a notable correction following a streak of record-breaking results driven by the previous year's semiconductor investment boom.
The earnings slump is primarily linked to a "reactionary decline" in demand from China, where chipmakers have reduced equipment orders after a phase of aggressive, front-loaded spending. While the cooling Chinese market weighed heavily on the SPE segment, SCREEN Holdings found some offset in its display production equipment division, which benefited from resilient demand for OLED manufacturing tools. Investors are now focused on whether the company can stabilize margins as it navigates this normalization phase in the global semiconductor supply chain.
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