Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Earnings season may accelerate the rotation from AI momentum into quality compounders with earnings visibility.</li>
<li>Macro headwinds with oil above $100, yen at 40-year lows, BOJ tightening on the horizon</li>
<li>We expect this dynamic to persist through August reporting season.</li>
</ul>


Earnings season may accelerate the rotation from AI momentum into quality compounders with earnings visibility.
Macro headwinds with oil above $100, yen at 40-year lows, BOJ tightening on the horizon
We expect this dynamic to persist through August reporting season.


Japan Strategy Weekly | Bifurcation Season

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>SEI and other optical/cable makers set to recover from recent underperformance on Meta news.</li>
<li>Memory plays and SPE laggards should get a lift on the news that Micron is planning to increase its US capex to $250bn (from $200bn).</li>
<li>SUMCO Corp and Shin Etsu Chemical likely to get a boost after Siltronic upgraded to outperform by BNP.</li>
</ul>


SEI and other optical/cable makers set to recover from recent underperformance on Meta news.
Memory plays and SPE laggards should get a lift on the news that Micron is planning to increase its US capex to $250bn (from $200bn).
SUMCO Corp and Shin Etsu Chemical likely to get a boost after Siltronic upgraded to outperform by BNP.


Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

Equity & Credit Research

Duncan Chan

<ul>
<li>Global wafer shipments grew 5.8% in 2025 and continued expanding into 2026, but China's localisation drive is increasingly influencing procurement decisions.</li>
<li>China's domestic 12-inch wafer penetration is estimated to have reached c.32% in 2026, supported by capacity expansion and qualification progress.</li>
<li>The two groups represent complementary exposures: Shin-Etsu and SUMCO for advanced-node durability; Chinese localisation names for higher-growth domestic substitution.</li>
</ul>


Global wafer shipments grew 5.8% in 2025 and continued expanding into 2026, but China's localisation drive is increasingly influencing procurement decisions.
China's domestic 12-inch wafer penetration is estimated to have reached c.32% in 2026, supported by capacity expansion and qualification progress.
The two groups represent complementary exposures: Shin-Etsu and SUMCO for advanced-node durability; Chinese localisation names for higher-growth domestic substitution.


Silicon Wafer Suppliers: China's Localisation Drive Is Emerging As A Market Share Risk

<ul>
<li>Shin Etsu likely to catch up today after Sumco's +19.23% move on Nomura TP raise from AI wafer demand.</li>
<li>Fuji Electric may get more attention after plans to launch a new liquid cooling product for servers which could reduce power by as much as 85%.</li>
<li>A surge in the US for software should help NEC, Fujitsu, OBIC which are all not far from their lows.</li>
</ul>


Shin Etsu likely to catch up today after Sumco's +19.23% move on Nomura TP raise from AI wafer demand.
Fuji Electric may get more attention after plans to launch a new liquid cooling product for servers which could reduce power by as much as 85%.
A surge in the US for software should help NEC, Fujitsu, OBIC which are all not far from their lows.


Japan Morning Connection: Blue Origin Blast Will Only Add to SpaceX IPO Excitement

<ul>
<li>Japan’s economy remained resilient, supported by easing inflation, stronger industrial activity and improving consumer sentiment </li>
<li>Equities reached fresh record highs as easing Middle East tensions and sustained AI-driven demand boosted confidence</li>
<li>Investor focus shifted towards AI infrastructure components, with MLCC, wafer and substrate suppliers leading gains</li>
</ul>


Japan’s economy remained resilient, supported by easing inflation, stronger industrial activity and improving consumer sentiment 
Equities reached fresh record highs as easing Middle East tensions and sustained AI-driven demand boosted confidence
Investor focus shifted towards AI infrastructure components, with MLCC, wafer and substrate suppliers leading gains


Japan

SUMCO Corporation manufactures silicon wafers for the semiconductor industry. The Company produces silicon wafers used to produce solar batteries as well as ultra-high purity quartz used to produce vessels for silicon manufacturing process. SUMCO markets its products worldwide.

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SUMCO Corp (3436 JP)

Japan Strategy Weekly | Bifurcation Season

Investors may shift from AI momentum to quality compounders amid macro headwinds, with this trend likely continuing through August earnings season.

Mark Chadwick

Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...

Andrew Jackson

Japan Morning Connection: Blue Origin Blast Will Only Add to SpaceX IPO Excitement

Space names Axelspace, QPS, Synspective and Astroscale all sold off Friday on Blue Origin explosion but unlikely to wallow long with SpaceX IPO...

Andrew Jackson

Japan Strategy Weekly: AI Rotation

Cooling geopolitical tensions, resilient domestic data and surging AI infrastructure demand propelled Japanese equities to fresh highs this week.

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Strategy Weekly | Bifurcation Season

​Investors may shift from AI momentum to quality compounders amid macro headwinds, with this trend likely continuing through August earnings season.

Mark Chadwick

Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

​Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...

Andrew Jackson

Silicon Wafer Suppliers: China's Localisation Drive Is Emerging As A Market Share Risk

China's wafer localisation drive is accelerating, but Shin-Etsu and SUMCO remain protected by qualification barriers, technology leadership and...

Duncan Chan

Japan Morning Connection: Blue Origin Blast Will Only Add to SpaceX IPO Excitement

Space names Axelspace, QPS, Synspective and Astroscale all sold off Friday on Blue Origin explosion but unlikely to wallow long with SpaceX IPO...

Andrew Jackson

Japan Strategy Weekly: AI Rotation

Cooling geopolitical tensions, resilient domestic data and surging AI infrastructure demand propelled Japanese equities to fresh highs this week.

Mark Chadwick

Investors may shift from AI momentum to quality compounders amid macro headwinds, with this trend likely continuing through August earnings season.

Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...