Sumco, a major silicon wafer manufacturer, is bearish on its performance for this quarter (October-December 2025). Net profit may fall into losses for the second consecutive quarter, and may fall into losses for the first time in 14 years for the full year. Its financial forecast is lower than market expectations. The stock price plummeted after hearing the news today.
According to Yahoo Finance's quotation, as of 8:20 a.m. Taipei time on the 12th, SUMCO collapsed 16.16% to 1,235 yen. Earlier, it fell as low as 1,222 yen, setting a new low in two months (since September 4).
SUMCO The last quarter (July-September 2025) financial report was announced after the market closed on the 11th: Demand for 12-inch silicon wafers for advanced logic/memory used in AI continues to be stable. However, demand for other than advanced products (traditional products) continues to be affected by customer inventory adjustments, and shipments of silicon wafer products below 8 inches continue to be low. Consolidated revenue increased slightly by 0.7% from the same period last year to 99.1 billion yen. The consolidated operating income, which shows the profit of the industry, turned from a surplus of 9.1 billion yen in the same period last year to a loss of 1.6 billion yen. The consolidated net income, which shows the final profit, turned from a surplus of 3.6 billion yen in the same period last year to a loss of 3.9 billion yen.
SUMCO pointed out that in terms of price, last quarter’s 12-inch and 8-inch silicon wafers followed long-term contract prices.
(Source: SUMCO)
Looking forward to the performance of this quarter (October-December 2025), SUMCO estimates that consolidated revenue will be 100 billion yen (the same as the same period last year), and consolidated operating loss is estimated to be 10 billion yen (profit was 7 billion yen in the same period last year). The industry will lose money for the second consecutive quarter. Consolidated net loss is estimated to be 16 billion yen (net profit was 3.6 billion yen in the same period last year), and it will fall into losses for the second consecutive quarter.
Regarding this quarter, SUMCO stated that demand for 12-inch silicon wafers for AI-enabled and advanced products continues to be strong. However, demand for non-advanced products (traditional products) is recovering slowly, and it will still take time for customers to adjust their inventory. For silicon wafers below 8 inches, shipments are expected to remain sluggish.
SUMCO pointed out that in terms of price, 12-inch and 8-inch silicon wafers will maintain long-term contract prices this quarter, while spot prices vary depending on region and use.
SUMCO estimates that consolidated revenue this year (January to December 2025) will increase by 2% annually to 404.4 billion yen, consolidated operating loss is estimated at 4.2 billion yen (last year’s profit was 36.9 billion yen), and consolidated net loss is estimated at 16.9 billion yen (last year’s net profit was 19.8 billion yen), which will be the first time in 14 years (since 2011) that it will fall into a loss.
Reuters reported that analysts on average expected SUMCO’s net loss this year to be 5.2 billion yen, and the loss reported by SUMCO was much higher than market expectations.
Regarding future prospects, SUMCO pointed out that the demand for 12-inch silicon wafers for advanced logic is strong, and the demand from data center memory is expected to increase. For silicon wafers below 8 inches, due to competition with Chinese manufacturers, shipments are expected to continue to remain at a low level
SUMCO is the largest shareholder of Taiwan Sembcorp and holds approximately 40% of Taiwan Sembcorp’s equity through its subsidiary SUMCO TECHXIV.