Japan Semiconductors / Consumer Electronics / Conglomerates

Research evidence excerpt

Japan Semiconductors / Consumer Electronics / Conglomerates

Foundation

July 8, 2026 12:42 PM GMTM

Investor Presentation | Japan Morgan Stanley MUFG Securities Co., Ltd.+ Kazuo Yoshikawa, CFA

Equity Analyst

Japan Semiconductors / Consumer Electronics / Kazuo.Yoshikawa@morganstanleymufg.comMie Yamazaki +81 3 6836-8408

Mie.Yamazaki@morganstanleymufg.com +81 3 6836-8899

Conglomerates Hidetaka Suzuki

Research Associate

Hidetaka.Suzuki@morganstanleymufg.com +81 3 6836-8402

Our Top Pick is KIOXIA Holdings. We also favor Renesas Electronics, driven by improving growth Daisuke Horiuchi

prospects for its data center business, and Sony Group, where we expect continued growth in high- ResearchDaisuke.Horiuchi@morganstanleymufg.comAssociate +81 3 6836-5428

margin network services.

Japan Semiconductors industry view In-Line: We expect AI-related investment by hyperscalers to remain at elevated levels in 2026,

supporting continued strong demand growth for AI and data center semiconductors. In addition, the recovery in the broader

semiconductor market is gaining momentum. While we maintain an In-Line industry view, our bias remains positive. At the stock

level, we rate KIOXIA Holdings and Renesas Electronics Overweight. Japan Semiconductors

Japan

Consumer Electronics industry view In-Line: Since November last year, shares of Sony Group and Nintendo have underperformed Industry View In-Line

Consumer Electronics

the market amid concerns that rising memory prices will pressure hardware gross margins. In contrast, Panasonic Holdings has

outperformed on expectations for growth in its AI-related businesses. We view the risk-reward profile for Sony Group as attractive Industry View In-Line

and maintain our Overweight rating. Conglomerates

Industry View No Rating