Due to the increasing demand for power semiconductors used in EVs, electronic component giant Rohm is expected to continue its record high revenue this year. However, due to the increased production of SiC power semiconductors, the equipment investment burden has increased, and the rising yen, Rohm‘s net profit may shrink this year. However, the stock price is still rising against the trend today.

As of the early closing of the Japanese stock market on the 10th (10:30 a.m. Taipei time), Rohm had risen 1.59% and temporarily closed at 10880 yen, much better than the decline of 0.52% of the TOPIX (TOPIX).

Rohm released a financial report press release after hours on the 9th, stating that due to the expected significant increase in demand for power semiconductors for EVs and an increase in demand for LSIs, the consolidated revenue for this year (April 2023 March 2024) is expected to increase by 6.3% annually to 540 billion yen, continuing to reach a new historical high. However, due to increased production of SiC power semiconductors, increased equipment investment burden, and a rising yen, the consolidated net profit is expected to decrease by 12.9% annually to 70 billion yen Pure profit is expected to shrink for the first time in four years, with consolidated revenue expected to decrease by 18.8% annually to 75 billion yen.http://www.ic-bom.com/

Rohm‘s financial forecast for this year is based on the trial value of 1 US dollar to 130 yen (133.53 yen in the previous year).

Rohm estimates that the revenue of the LSI department will increase by 4.9% to 245.1 billion yen this year, while the revenue of the semiconductor component department (including diodes, transistors, power semiconductors, LEDs, and laser diodes) will increase by 10.1% to 233.7 billion yen. The revenue of the module department (including power modules for LED lighting, wireless LAN modules, and proximity sensors for smartphones) will decrease by 0.5% to 34.1 billion yen annually.http://www.ic-bom.com/

Rohm pointed out that the estimated equipment investment for this year is 160 billion yen, which will increase by 27% compared to the previous year (126.1 billion yen). According to Nikkei News, over 50% of Rohm‘s equipment investment this year will be used for SiC power semiconductors.

Rohm pointed out that the factory located in Zhuhou City, Fukuoka Prefecture began mass production of SiC power semiconductors in December 2022, and plans to build a new factory. The goal is to increase the monthly SiC power semiconductor production capacity (converted into 6-inch wafers) to 6.5 times in 2021 and further expand to 35 times in 2030.

Rohm stated that the goal is to increase SiC power semiconductor revenue to 130 billion yen in 2025 and further to 270 billion yen in 2027.http://www.ic-bom.com/

Rohm also released its financial report for the previous year (April 2022 March 2023): due to the increase in demand for power semiconductors used by EVs, coupled with the decline in the Japanese yen, the combined revenue increased by 12.3% to 507.8 billion yen (a record high), the combined revenue increased by 29.2% to 92.3 billion yen, and the combined net profit increased by 20.3% to 80.3 billion yen.