Japan Silicon Makers to Regain Profitability in F2010

Japan Society of Newer Metals announced the 7 members’ silicon units will regain profitability in fiscal 2010 started April to post operating profit. The members posted operating loss in fiscal 2009, which was first loss in 8 years. However, the association expects their profitability improves when their sales recovers at higher pace than expected especially for silicon wafer of semiconductor.

The members include SUMCO Corporation, Mitsubishi Materials and Covalent Materials Corporation. The total silicon sales halved to 613.6 billion yen in fiscal 2009 from fiscal 2008 while the operating loss was 93.5 billion yen, which was largest loss in 10 years. Silicon market for semiconductor recovered 90% level of the peak of first half of fiscal l2009. However, single crystal silicon sales decreased by 25.3% in 2009 from 2008.

The association expects the operating profit in fiscal 2010 is much less than 253.2 billion yen in fiscal 2008. However, the industry could post positive operating profit while the industry posted 2 years consecutive loss in fiscal 1998 and 1999. The association expects strong demand in emerging countries support their operation.

The association expects the silicon sales increases mainly for wafer with 300 millimeters diameter. The association expects single crystal silicon sales will increase by 37.3% to 8,846 tonnes in 2010 from 2009 while the original outlook was 8,522 tonnes as of the beginning of the year.