Shin-Etsu Chemical's electronic materials business drove the group's first-half profit growth, while the segment that houses its PVC operations earned less than a year earlier. For the six months to September 30, 2026, consolidated sales rose 10.6% to ¥1.42tn and operating profit rose 15.6% to ¥385.9bn, according to the company's interim results summary. Net profit attributable to owners of the parent rose 11.3% to ¥286.9bn.
Chips carry the half
Electronic materials operating profit rose 28% to ¥218.9bn on sales up 16% to ¥577.7bn. Shin-Etsu said the semiconductor market grew strongly, led by what it called historic AI-related investment centred on data centres, and that this produced supply tightness in some product groups. The company said it responded with careful supply management and price revisions, and that semiconductor materials sales grew. It did not say tightness applied across its range, and the statement is limited to those product groups.
Shin-Etsu also pointed to a semiconductor market it expects to reach $2tn a year in three years. Two smaller segments pointed the same way: functional materials operating profit rose 31% to ¥63.2bn, and processing, trading and technical services rose 28% to ¥17.4bn on firm demand for semiconductor wafer containers. For the July to September quarter alone, the company said operating profit rose 27% and ordinary profit 20% from a year earlier.
| Segment | Prior year | This year | Change |
|---|---|---|---|
| Electronic materials | ¥170.6bn | ¥218.9bn | +28% |
| Life and environment foundation materials | ¥102.3bn | ¥86.2bn | -16% |
| Functional materials | ¥48.1bn | ¥63.2bn | +31% |
| Processing, trading and technical services | ¥13.6bn | ¥17.4bn | +28% |
PVC pulls the other way
The life and environment foundation materials segment, where the company reports on PVC and caustic soda, grew sales 4% to ¥522.1bn but saw operating profit fall 16% to ¥86.2bn. Shin-Etsu said PVC markets in Asia and surrounding regions softened from late May on excess inventory and slowing demand. It said it pushed through a price increase in July and that the market has since been choppy but stable. It described caustic soda as broadly firm.
Guidance held, returns up
Shin-Etsu kept its outlook for the year to March 2027 as announced in July: sales of ¥2.7tn, operating profit of ¥700bn, up 10.2%, and net profit of ¥525bn, up 10.7%. The summary says the forecast faces various swing factors and gives no new figure for the second half.
The interim dividend is ¥78 a share, made up of a ¥58 ordinary payout and a ¥20 centenary special, and the full-year forecast is ¥136. The board's authorisation to buy back up to 45mn shares, or ¥250bn, was completed through purchases in July and August.
The summary is outside auditor review. A review report will accompany the half-year securities report, due to be filed on November 13, 2026.