Sumitomo Electric Industries: Optical devices: Increased advantages owing to integrated production setup

研报英文原文证据摘录

Sumitomo Electric Industries: Optical devices: Increased advantages owing to integrated production setup

Global Markets Research

9 July 2026Sumitomo Electric Industries

5802.T 5802 JP / EQUITY: JAPAN STEEL, NONFERROUS METALS, WIRE & CABLE

Optical devices: Increased advantages owing to Rating Buyintegrated production setup

Target price JPY 3,775Quick Note

Closing price

8 July 2026 JPY 2,361.5Tight InP substrate supply/demand a tailwind for optical devices business

We raised our rating on JX Advanced Metals [5016] (Buy) from Neutral to Buy on 8 July, (Note: Quick Note reports are not a

based in part on growth in its InP substrate business (for reference see our report JX vehicle for changes to ratings, target

AdvancedMetals[5016]). prices, or earnings forecasts)

Sumitomo Electric Industries is believed to be the world's largest producer of InP

substrates, which the company uses as a core material for its own optical devices and

also sells externally. Sumitomo Electric Industries is also the world's leading producer of

multiple optical devices and GaN devices for mobile phone base stations, making it a Research Analysts

player in the global compound semiconductor industry (see Figure 17 in our 8 June 2026 Japan steel, nonferrous metals,

report SumitomoElectricIndustries[5802]). wire & cable

Yuji Matsumoto - NSCSumitomo Electric Industries is engaged in integrated, end-to-end production of optical

yuji.matsumoto@nomura.comdevices beginning with InP substrates. This is one of the strengths of its optical devices

+81 3 6703 1220

business. We would cite a couple of reasons for this. (1) With InP substrate

supply/demand expected to tighten and peers in the optical device industry struggling to Japan chemicals & textiles