Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. It operates through four segments: Infrastructure Materials, Functional Materials, Electronics Materials, and Processing & Specialized Services. The company offers polyvinyl chloride resin, caustic soda, methanol, chloromethanes, polyvinyl alcohol, semiconductor silicon, rare earth magnets, semiconductor encapsulating materials, LED packaging materials, photoresists, photomask blanks, and synthetic quartz products. It also sells silicones, cellulose derivatives, silicon metal, synthetic pheromones, vinyl chloride-vinyl acetate copolymer, liquid fluoroelastomers, pellicles, and silicon anode material for lithium-ion batteries, and is involved in processed plastics, export of technologies and plants, export and import of products, and engineering activities. Formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd., it changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Incorporated in 1926, it is headquartered in Tokyo, Japan.
Shin-Etsu: AI demand and photoresist price hikes offset profit miss and China trade hit
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NVIDIA deepens ties with Japanese suppliers, boosting wafer demand NVIDIA's CEO met with Shin-Etsu and other Japanese suppliers, signaling that AI expansion will keep driving demand for Shin-Etsu's silicon wafers. More AI chips mean more wafer sales, which supports future revenue and profits.
This is a new demand signal that directly supports Shin-Etsu's core semiconductor materials business.
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Full-year profit forecast misses market expectations, shares drop 8% Shin-Etsu projected net profit of 525 billion yen, below the 566.8 billion yen analysts expected. The weak outlook, partly from poor vinyl chloride conditions, caused the stock to fall over 8% as investors lowered their expectations.
This is a new negative event that directly hit the stock price and reflects a real earnings shortfall.
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Photoresist price hikes of up to 38% lift margins Shin-Etsu and peers are raising photoresist prices by 15% overall from October 1, with high-end grades up to 38% for spot orders. Higher prices should boost Shin-Etsu's revenue and profit margins in this key product line.
This is a new pricing action that directly improves profitability for a major Shin-Etsu product.
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China imposes up to 99.2% anti-dumping deposits on Shin-Etsu's dichlorosilane China will require deposits of up to 99.2% on imports of Shin-Etsu's dichlorosilane, a semiconductor material, starting September 8. This trade measure, seen as pressure on Japan, could hurt Shin-Etsu's sales to China and add uncertainty.
This is a new regulatory/trade action that directly threatens Shin-Etsu's exports and adds a real counterweight.
Q3 2026
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Shin-Etsu: AI demand and photoresist price hikes offset profit miss and China trade hit
▲
NVIDIA deepens ties with Japanese suppliers, boosting wafer demand NVIDIA's CEO met with Shin-Etsu and other Japanese suppliers, signaling that AI expansion will keep driving demand for Shin-Etsu's silicon wafers. More AI chips mean more wafer sales, which supports future revenue and profits.
This is a new demand signal that directly supports Shin-Etsu's core semiconductor materials business.
▼
Full-year profit forecast misses market expectations, shares drop 8% Shin-Etsu projected net profit of 525 billion yen, below the 566.8 billion yen analysts expected. The weak outlook, partly from poor vinyl chloride conditions, caused the stock to fall over 8% as investors lowered their expectations.
This is a new negative event that directly hit the stock price and reflects a real earnings shortfall.
▲
Photoresist price hikes of up to 38% lift margins Shin-Etsu and peers are raising photoresist prices by 15% overall from October 1, with high-end grades up to 38% for spot orders. Higher prices should boost Shin-Etsu's revenue and profit margins in this key product line.
This is a new pricing action that directly improves profitability for a major Shin-Etsu product.
▼
China imposes up to 99.2% anti-dumping deposits on Shin-Etsu's dichlorosilane China will require deposits of up to 99.2% on imports of Shin-Etsu's dichlorosilane, a semiconductor material, starting September 8. This trade measure, seen as pressure on Japan, could hurt Shin-Etsu's sales to China and add uncertainty.
This is a new regulatory/trade action that directly threatens Shin-Etsu's exports and adds a real counterweight.
News & notes moving4063.JP
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Tri-I's, Shin-Etsu Chemical, Copro HD and others announce strong earnings and dividend hikes
Among the companies that reported earnings after the close on September 15, several were highlighted as likely to be viewed favorably by the market for strong results or dividend increases. Tri-I's raised its year-end lump-sum dividend for the fiscal year ending December 2026 to 11 yen from the previously planned 5 yen, an increase of 6 yen, after paying no dividend the prior year. Growth xP revised up its consolidated ordinary profit for the fiscal year ending August 2026 to 530 million yen from the previously forecast 440 million yen, a 20.9 percent increase, with its profit decline expected to narrow to 38.3 percent from 49.0 percent. Shin-Etsu Chemical raised its first-half dividend for the fiscal year ending March 2027 to 78 yen from the previously planned 58 yen, an increase of 20 yen, bringing the annual dividend to 136 yen and implementing a 20 yen commemorative dividend for its 100th anniversary. Copro HD raised its first-half dividend for the fiscal year ending March 2027 to 20 yen from the previously planned 15 yen, an increase of 5 yen, bringing the annual dividend to 50 yen and implementing a 5 yen commemorative dividend for its 20th anniversary, lifting its dividend yield to 5.39 percent.
4063.JP · Capital · Positive Shin-Etsu Chemical raised its first-half dividend to 78 yen from 58 yen and added a 100th-anniversary commemorative dividend.
4840.JP · Capital · Positive Tri-I's raised its year-end dividend to 11 yen from 5 yen, a favorable capital-return event.
Shin-Etsu Chemical Raises FY2027 Dividend Forecast to 136 Yen, Marking 100th Anniversary with 20-Yen Commemorative Payout
Shin-Etsu Chemical announced on the 15th that it has revised upward its full-year dividend forecast for the fiscal year ending March 2027 to 136 yen per share from the previous 116 yen. The prior-year result was 106 yen. To commemorate the company's 100th anniversary on September 16, it will pay a commemorative dividend of 20 yen per share alongside the interim dividend. The commemorative dividend is scheduled to be approved at a board meeting to be held in October.
Global photoresist prices rise up to 38%, Xilong Scientific hits limit up
Japan's JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical and other companies announced that from October 1, 2026, new photoresist pricing for global customers will be raised by 15% overall, with high-end ArF series long-term contract quotes up 16% to 22%, HBM-specific immersion ArF up as much as 24%, spot bulk orders up 32% to 38%, KrF series standard grades up 9% to 14%, and 3D NAND thick-film KrF up 18% to 20%. Boosted by the price hike news, the electronic chemicals sector remained strong all day. Xilong Scientific surged to limit up with heavy volume shortly after the midday open, hitting a two-month high, with turnover in less than 15 minutes exceeding the entire previous day's total. Haixing shares climbed rapidly on late-session volume, while Guangxin Materials and Zhongshi Technology also showed unusual upward moves during the session. Also lifted by the price hike news, the glass fiber sector index has risen for seven consecutive days, with Honghe Technology up for seven straight days, and China Jushi, International Composites and Sinoma Science & Technology all up for five consecutive days. The latest data from Sublime China Information shows that as of September 15, the ex-factory price of 7628 electronic fabric was about 11.5 to 12.1 yuan per meter, up 10% to 20% month on month, with the year-to-date gain reaching as high as 162%.
4186.JP · Pricing · Positive Tokyo Ohka Kogyo is among the companies raising global photoresist prices by 15% overall from October 1, 2026.
002584.CS · Pricing · Positive Xilong Scientific surged to limit up with heavy volume after JSR, Tokyo Ohka Kogyo and Shin-Etsu announced 15%-38% photoresist price hikes.
4063.JP · Pricing · Positive Shin-Etsu is among the companies raising global photoresist prices by 15% overall from October 1, 2026, lifting its product pricing/margins.
JSR Corporation · Pricing · Positive JSR announced the global photoresist price hikes of 15% overall with high-end ArF and HBM-specific grades up more, boosting its product pricing.
603115.CG · Pricing · Positive Haixing shares climbed rapidly on late-session volume amid the photoresist price-hike-driven electronic chemicals sector strength.
002080.CS · Pricing · Positive Sinoma Science & Technology rose for five consecutive days as the glass fiber sector rallied on the price-hike news.
China Imposes Anti-Dumping Measures on Chip Material from Japan
China's Ministry of Commerce has announced anti-dumping measures on imports of dichlorosilane from Japan, a chemical used in semiconductor manufacturing. Importers will be required to place deposits at rates up to 99.2%, effective from today (September 8). Although the measures target a specific product, they signal an escalation of diplomatic tensions between China and Japan stemming from last year's Taiwan issue. Japanese Chief Cabinet Secretary Minoru Kihara said the government will closely monitor the measures and work with businesses to prevent severe impacts. Shares of Chinese companies involved in dichlorosilane production rose, led by Tangshan Sunfar Silicon Industry Co., which hit the 10% daily limit on the Shanghai Stock Exchange. Meanwhile, Japan's Shin-Etsu Chemical Co. fell 1.5%, with a spokesperson saying the measures will not affect the company's revenue as dichlorosilane accounts for only a small portion of its overall business. The diplomatic conflict between China and Japan began in November 2025 after Japanese Prime Minister Sanae Takaichi suggested sending troops to intervene if China attempted to take Taiwan by force. The latest move comes ahead of Takaichi's expected visit to the United States this month, while President Xi Jinping is scheduled to meet President Donald Trump at the White House on September 24.
603938.CG · Tariff · Positive China's anti-dumping deposits on Japanese dichlorosilane imports benefit domestic producers like Tangshan Sunfar, whose shares hit the 10% limit.
4063.JP · Tariff · Negative China's anti-dumping measures on Japanese dichlorosilane hit Shin-Etsu, though it says the product is a small portion of revenue.
Kanghui Co. Subsidiary Signs 1.72 Billion Yuan Computing Power Deal; Accelink Technologies Sees 253 Million Yuan Net Institutional Buying
Kanghui Co.'s wholly owned subsidiary Beijing Kanghui Zhichuang signed a Computing Power Service Contract with Client Company A, with a total contract value of approximately 1.72 billion yuan including tax, for a term of five years. Computing power delivery will be implemented in batches from the end of the third quarter of 2026 through the end of the first quarter of 2027. Trading disclosure data from September 16 shows Accelink Technologies saw net institutional buying of 253 million yuan, accounting for 3.42 percent of total turnover. Luozhou Co. saw net institutional buying of 44.4196 million yuan, accounting for 6.03 percent of total turnover. Huawei disclosed that its next-generation Ascend supernode will soon be officially launched, targeting large-scale data center construction, trillion-parameter large model training, and high-concurrency inference scenarios. According to media reports, Japan's JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical, and others announced that starting October 1, 2026, new pricing for photoresist for global customers will be raised by 15 percent overall, with high-end ArF series long-term contract quotes raised by 16 to 22 percent, and HBM-specific immersion ArF raised by up to 24 percent. In addition, Deye Co. plans to repurchase shares for 100 million to 200 million yuan, with a repurchase price not exceeding 133 yuan per share. Henggong Precision plans to issue convertible bonds of no more than 810 million yuan for projects including embodied intelligent robots.
Artificial Intelligence › AI Compute & Accelerator Silicon Competition
301261.CS · Capital · Positive Henggong Precision plans to issue up to 810 million yuan of convertible bonds for embodied intelligent robot projects.
4186.JP · Pricing · Positive Tokyo Ohka Kogyo is among the Japanese firms raising photoresist prices 15% overall from October 1, 2026, with high-end ArF up 16-22%.
603139.CG · Demand · Positive Wholly owned subsidiary Beijing Kanghui Zhichuang signed a 1.72 billion yuan computing power service contract with a client for five years.
605117.CG · Capital · Positive Deye plans to repurchase shares for 100-200 million yuan at up to 133 yuan per share.
4063.JP · Pricing · Positive Shin-Etsu is among the Japanese makers raising photoresist prices 15% overall from Oct 1, 2026, with high-end ArF up 16-22% and HBM immersion ArF up to 24%.
Huawei · Technology · Positive Huawei disclosed its next-generation Ascend supernode will soon launch, targeting large-scale data centers, trillion-parameter model training, and high-concurrency inference.
Nikkei Rebounds as Cyclical Stocks Gain; Some AI and Semiconductor Shares Weaken
The Nikkei Stock Average rebounded, closing 0.50% higher at 64,931.19 yen from the previous trading day. Cyclical stocks were bought amid lower crude oil prices following a pause in U.S. attacks on Iran, while some artificial intelligence and semiconductor-related shares were weak. The TOPIX rose 1.37% to 4,066.07 points, showing resilience, and the Tokyo Stock Exchange Prime Market Index gained 1.36% to 2,097.22 points. Trading value was 9.355618 trillion yen. Among individual stocks, Shin-Etsu Chemical fell more than 8% after its full-year outlook missed market expectations, Advantest dropped nearly 2%, and SoftBank Group declined over 3%, with some semiconductor-related names being sold. On the other hand, Fast Retailing rose over 1%, Recruit Holdings gained more than 3%, and Konami Group and Bandai Namco Holdings surged 6% to 7%, as domestic demand-oriented stocks attracted buying.
Shin-Etsu Chemical Reports Higher Q1 Net Income, Guides for Fiscal 2027 Growth
Shin-Etsu Chemical reported higher net income in the first quarter of 2026. Net income attributable to owners of the parent rose to 130.83 billion yen from 126.43 billion yen a year earlier, with earnings per share of 70.24 yen compared to 66.45 yen. Operating income increased to 173.80 billion yen from 166.80 billion yen, and net sales grew to 662.42 billion yen from 628.55 billion yen. The company plans to pay an interim and year-end dividend of 58 yen per share each, for a total annual dividend of 116 yen per share. For the full fiscal year 2027, Shin-Etsu Chemical expects net sales of 2.70 trillion yen, up 5% from fiscal 2026, operating income of 700 billion yen, up 10.2%, and net income of 525 billion yen, up 10.7%, with earnings per share of 286 yen, up 13.2%.
NVIDIA CEO Meets Japanese Suppliers to Strengthen AI Supply Chain
NVIDIA CEO Jensen Huang met with executives from several Japanese suppliers at a Tokyo izakaya, signaling the company's deepening reliance on Japan's industrial base for its AI expansion. The gathering included Kioxia Holdings, Shin-Etsu Chemical, Tokyo Electron, Ajinomoto, Sumitomo Electric Industries, Taiyo Yuden, Panasonic Holdings, and Nitto Boseki, spanning flash memory, silicon wafers, manufacturing equipment, chip-packaging film, fiber-optic cables, capacitors, and ultra-thin glass cloth. Huang stated that Japan provides foundational technologies for semiconductor manufacturing, and Tokyo Electron's CEO noted NVIDIA has substantial expectations for the Japanese supply chain. The meeting underscores the critical role of these specialized suppliers as NVIDIA, valued at more than $5.1 trillion, scales its AI infrastructure.
NVDA · Supply · Positive CEO meeting with Japanese suppliers strengthens AI supply chain, ensuring access to key components.
8035.JP · Demand · Positive NVIDIA CEO meeting signals strong demand for Tokyo Electron's manufacturing equipment as NVIDIA scales AI infrastructure.
285A.JP · Demand · Positive Kioxia's flash memory is essential for AI storage, and NVIDIA's meeting underscores growing demand from the AI supply chain.
4063.JP · Demand · Positive Shin-Etsu's silicon wafers are foundational for semiconductor manufacturing, and NVIDIA's AI expansion increases demand for its products.
5802.JP · Demand · Positive Sumitomo Electric's fiber-optic cables are critical for AI data centers, and NVIDIA's deepening reliance on Japanese suppliers boosts demand outlook.
2802.JP · Demand · Positive Ajinomoto's chip-packaging film is critical for NVIDIA, with meeting pointing to higher demand.
New York Market Falls Back, Nasdaq Drops 387 Points
The New York market fell back on the 16th, with the Dow Jones Industrial Average closing down 105.67 dollars at 52,552.97 dollars, and the Nasdaq down 387.28 points at 25,881.95. Concerns over rising crude oil prices due to intensified attacks on Iran and higher interest rates were met with aversion, while Taiwan Semiconductor Manufacturing Company's earnings failed to meet market expectations, putting selling pressure on the sector and keeping the Nasdaq weak throughout the day. By sector, real estate management and development rose, while semiconductors and semiconductor manufacturing equipment fell. The Chicago Nikkei 225 futures settlement price was 66,040 yen, down 1,755 yen from the Osaka daytime session, and in the ADR market, TDK, Shin-Etsu Chemical, and Disco fell, with selling generally dominating.
World’s top share but the stock won’t rise? The trap in picking semiconductor stocks: degree of specialization and contribution
In the semiconductor value chain, Japanese companies hold overwhelming global shares in materials, back-end processes, and electronic components. But former institutional investor Ryosuke Izumida points out that for equity investment, it is essential to analyze the degree of specialization and contribution—assessing how much a company’s semiconductor-related business contributes to its overall performance. Shin-Etsu Chemical leads the world in silicon wafers, with SUMCO in second place. Tokyo Ohka Kogyo is number one in photoresists. Ajinomoto Build-up Film holds about 95 percent of the global market for insulation film. Murata Manufacturing commands roughly 70 percent of MLCCs for AI servers. Japanese firms boast high technical capabilities. However, at highly diversified companies like Mitsui Chemicals and Mitsubishi Electric, expanding semiconductor demand may have only a limited impact on overall earnings and stock prices. In contrast, highly specialized firms such as SUMCO and Tokyo Ohka Kogyo tend to reflect the industry’s strength more directly. Izumida stresses the importance of bottom-up research—digging into earnings reports and briefing materials to gauge the contribution of semiconductor and AI-related businesses.
3436.JP · Demand · Positive SUMCO is the second-largest silicon wafer maker and highly specialized, directly benefiting from semiconductor demand.
4186.JP · Demand · Positive Tokyo Ohka Kogyo is the world's top photoresist maker, highly specialized, so semiconductor demand directly boosts its earnings.
6981.JP · Demand · Positive Murata holds ~70% of MLCCs for AI servers, a specialized semiconductor component, benefiting from AI demand.
2802.JP · Demand · Positive Ajinomoto's Build-up Film has ~95% global market share for insulation film, a specialized semiconductor material, benefiting from demand.
4063.JP · Demand · Neutral Shin-Etsu is the top silicon wafer maker but is highly diversified; semiconductor demand impact on overall earnings is limited.
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