Shin-Etsu Chem (4063): Briefing: 300mm wafer LTA prices could rise sharply

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Shin-Etsu Chem (4063): Briefing: 300mm wafer LTA prices could rise sharply

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Shin-Etsu Chem (4063)

Briefing: 300mm wafer LTA prices could

rise sharply

Maintain Rating: BUY | PO: 9,400 JPY | Price: 6,702 JPY

24 July 2026

Briefing: Silicon wafer tightness exceeds expectations Equity

The key points from the 24 July briefing are as follows. While the PVC outlook was

weaker than expected, we interpret the discussion as materially lifting the outlook for Takashi Enomoto >>

silicon wafers. The content could support a higher valuation multiple and is therefore Research Analyst BofAS Japan

viewed positively. takashi.enomoto@bofa.com

Niima Komura >>

1. Silicon wafer supply-demand conditions are tighter than expected. Demand Research Analyst

accelerated sharply from June, with July shipments of 300mm wafers reaching a BofASniima.komura@bofa.comJapan

record monthly high. Semiconductor customers are securing inventories in Kyoji Chiba >>

anticipation of expanding AI-related demand. Not only 300mm wafers, but also Research Analyst

200mm and sub-150mm wafers have entered an allocation environment, with BofASkyoji.chiba@bofa.comJapan

operations running at full capacity (limited by labor availability). Supply-demand

conditions for monitor and dummy wafers are also tight. While the reason is

unclear, supply from Chinese silicon wafer manufacturers appears limited.

Stock Data

2. The cost of investing in additional 300mm wafer capacity has roughly doubled

Price 6,702 JPY

versus 2021. Management indicated that expanding capacity under current long-

Price Objective 9,400 JPY

term agreement (LTA) pricing would be difficult. While customer demand for LTA

Date Established 8-Jul-2026

appears strong, the company signaled a cautious stance on LTA terms, including