Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<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

Japan Specialist

Mark Chadwick

<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


<ul>
<li>Disco, Lasertec and Advantest all trading below recent highs despite reporting this season but set to close the gap on positive news.</li>
<li>Softbank -4.5% Friday but looks attractive after reducing its margin loan from $10bn to $6bn easing overextension concerns.</li>
<li>QD Laser +23% on Friday, a positive for Samco Inc, Seikoh Giken and Santec Corp also on this theme.</li>
</ul>


Disco, Lasertec and Advantest all trading below recent highs despite reporting this season but set to close the gap on positive news.
Softbank -4.5% Friday but looks attractive after reducing its margin loan from $10bn to $6bn easing overextension concerns.
QD Laser +23% on Friday, a positive for Samco Inc, Seikoh Giken and Santec Corp also on this theme.


Japan Morning Connection: Sumco Surges on AI Wafer Demand and SPE Laggards Set for a Rebound

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

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Intel's Apple deal and Micron's structural shift drive gains, a positive for Japan's SPE laggards Disco, Lasertec and Advantest now set to close...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Japan Morning Connection: Sumco Surges on AI Wafer Demand and SPE Laggards Set for a Rebound

Intel's Apple deal and Micron's structural shift drive gains, a positive for Japan's SPE laggards Disco, Lasertec and Advantest now set to close...

Andrew Jackson

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...