Asahi Kasei Profits Surge 50.6 Percent Supply Adjustment in Semiconductor Materials Sparks Concerns

Japanese giant Asahi Kasei reported impressive financial results for the 2024-2025 fiscal year ending March 2025. The company achieved 211.9 billion yen in operating profit, a 50.6% increase from the previous year, marking its highest level in six years. Sales revenue reached 3.0373 trillion yen, up by 9.1%, while recurring profit soared by 114.7% to 193.4 billion yen. Net profit also surged by 208.2%, hitting 134.9 billion yen.

Analysts attribute the growth to strong performance in medical devices and semiconductor materials, alongside the company’s pricing strategy that links material costs to petrochemical raw material prices, driving profitability across all divisions.

In May, Asahi Kasei’s announcement of supply adjustments in its PIMEL series of high-end photosensitive materials, including photosensitive polyimide (PSPI), caused ripples in the semiconductor industry. The surge in AI demand has outstripped production capacity, raising fears of supply disruptions in advanced packaging materials.

Asahi Kasei issued a statement to clarify the situation, emphasizing that demand for PIMEL has exceeded expectations, driven by growing interest in advanced semiconductor packaging technologies. The company denied rumors of a supply halt, stating, "This is not true." It assured that production remains stable, supported by a new factory in Shizuoka Prefecture that began operations in December 2024. Additionally, discussions with clients are ongoing to ensure continuous supply, and plans for long-term capacity expansion are under consideration.

Although the supply disruption was a false alarm, the incident highlighted the critical role of PSPI in semiconductor manufacturing and underscored the risks in global supply chains, prompting a renewed push for domestic alternatives in China.