Shinko Electric Industries(6967.T) reported a decrease in revenue for the April-June period, with sales totaling 49.206 billion yen, representing a decline of 38% compared to the previous year. The company's net profit also experienced a significant drop, reaching only 3.653 billion yen, reflecting an 81.3% decrease compared to the same period last year.

Shinko attributes the decline mainly to the decrease in sales of semiconductor components, as the semiconductor industry is experiencing a downturn, resulting in a decline in the PC and server markets and longer replacement cycles for smartphones. The company forecast that the semiconductor market will gradually recover from October 2023 to March 2024, and the full-year sales for 2024 are projected to remain unchanged at 261 billion yen, with a 56% decrease in net profit to 24 billion yen.

The parent company, Fujitsu (6702.T), is considering selling its stake in Shinko as part of its group rationalization efforts. Several investment institutions, including KKR & Co, Apollo Global Management Inc, Bain Capital, and Japan Investment Corp, have expressed interest in bidding for the stake. Japan Investment Corp is also considering a joint bid and has held discussions with potential partners such as Daiichi Printing Dai Nippon Printing and Mitsui Chemicals.

About Shinko

Business

Shinko develops and produces various "Semiconductor Packages" that adapt to the miniaturization, acceleration, and performance enhancement of semiconductors.

Their aim to enrich and contribute to the lives of people all over the world by providing cutting-edge packaging technologies. These technologies are designed for markets related to IoT and AI, which are anticipated to become more widely used in the future. They also cater to the auto market, where technology development is accelerating, including autonomous driving and electric vehicles. These advancements are supported by the practical implementation of the next-generation mobile communication standard (5G).

Products

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