Rohm has moved its target for making the silicon carbide (SiC) business profitable forward by a year, from the fiscal year labelled 2028 to the one labelled 2027, according to its interim results briefing dated 6 November 2026. The slide calls it an aim, not an achievement.
What has to happen first
The briefing lists the steps behind the target. AI-server demand and price rises are meant to lift SiC margins in stages from the current fiscal year. The second Miyazaki plant starts 8-inch device production in the second quarter of fiscal 2027, a year earlier than planned. The 6-inch line at the Chikugo plant is to be converted to 8-inch by fiscal 2028. Chikugo began volume production of fifth-generation 8-inch SiC MOSFETs, which have contributed to sales since October, with output set to rise sharply toward the end of the fiscal year.
Profit is not there yet. In the first half, the semiconductor devices segment lost ¥4.4bn, against a ¥9.8bn loss a year earlier. Rohm also cited a temporary yield drop caused by SiC device quality problems.
Profit is rising faster than sales
First-half sales rose 14.4% to ¥279.5bn and operating profit rose to ¥17.5bn from ¥7.7bn. SiC sales, excluding the substrate business, rose 55% year on year, and server-related sales rose about 66%. Rohm forecasts server sales growth of 94.1% for the full year and says orders exceed production capacity, so its backlog is growing.
Full-year operating profit guidance is ¥50bn, up ¥20bn from the initial plan of ¥30bn. Rohm attributes the increase to higher sales volumes, partly offset by materials and inventory effects of ¥23.3bn. It also cites a gold price below its initial assumption, which eased variable costs, and wider price rises that now cover unprofitable products.
Dividend and talks
The interim dividend is ¥25 a share, with the same planned at year-end for ¥50 for the year. The briefing says talks on a business and management integration are continuing, and it names no counterparty or terms.
More background is in Earlier Tokyo Brief coverage.