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World's largest maker of silicon wafers for chips, plus PVC resin and silicone materials.
World's largest maker of silicon wafers for chips, plus PVC resin and silicone materials.
Sells silicon wafers to chipmakers, mostly under long-term supply agreements, alongside a very different business in PVC plastic, made largely in the US through its Shintech subsidiary, and silicones. Wafers follow chip-industry spending, while PVC follows construction.
In one line: A wafer-monopolist chemicals conglomerate.
Moat: wide (scale, process know-how, customer qualification). Global #1 in semiconductor silicon wafers; costly for chipmakers to requalify a wafer supplier.
Headquarters: Tokyo, Japan · Founded: 1926 · Employees: 27,342
Size Shin-etsu Chemical (4063.T) is a Japan Materials company (Chemicals: Specialty) with a market value of $66.5B, the 22nd largest of 1,379 Japan companies the cockpit tracks. Shares closed at ¥5,312 on 6 Nov 2026.
Performance Over six months the shares fell 26.7%, against +2.8% for the median peer and +1.8% for the Japan market (cap-weighted) — 3rd lowest of 13 in its peer set.
Growth Revenue grew 5.1% over the last twelve months (peer median +4.3%); the operating margin is 25.4% (peer median 19.6%).
Valuation It trades at 17.2× forward earnings against a peer median of 24.1× (6th cheapest of 13).
Price implies For today's price to make sense, revenue must grow about 9% a year for seven years (Req g). Recent delivered growth is +11%, so the hurdle is -3 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 4.3 points above its cost of capital (9.3% WACC).
Next results Next results expected around 28 Jan 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | ¥2.71T | ¥2.57T | ¥2.56T | ¥2.41T | ¥2.81T |
| Revenue growth | — | 0% | +6% | -14% | — |
| Gross profit | ¥936B | ¥877B | ¥981B | ¥906B | ¥1.21T |
| EBITDA | ¥930B | ¥878B | ¥980B | ¥929B | ¥1.21T |
| Net income | ¥504B | ¥474B | ¥534B | ¥520B | ¥708B |
| Free cash flow | ¥468B | ¥359B | ¥442B | ¥381B | ¥492B |
| Capital expenditure | ¥309B | ¥356B | ¥443B | ¥377B | ¥299B |
| Total debt | ¥402B | ¥259B | ¥33.9B | ¥41.2B | ¥47.1B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Shin-etsu Chemical 4063.T | $66.5B | -27% | +5% | 25% | 17.2× | 8.9% |
| Sumco 3436.T | $3.96B | -28% | +4% | -4% | n/a | n/a |
| Wacker Chemie WCH.DE | $4.42B | -24% | -5% | -1% | 33.0× | n/a |
| GlobalWafers 6488.TWO | $8.15B | -23% | -6% | 11% | 21.4× | n/a |
| Siltronic WAF.DE | $1.86B | -46% | +1% | -16% | n/a | n/a |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 4063.T | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -16.0% | +6.0% | lowest of 13 |
| 6-month return | -26.7% | +2.8% | 3rd lowest of 13 |
| Distance from 52-week high | -33.0% | -6.0% | 4th lowest of 13 |
| Revenue growth (TTM) | +5.1% | +4.3% | 5th highest of 13 |
| Operating margin | 25.4% | 19.6% | 4th highest of 13 |
| Forward P/E | 17.2× | 24.1× | 6th cheapest of 13 |
| Growth the price implies (Req g, 7 yrs) | 8.9% | 8.6% | 6th most demanding of 12 |
| Growth delivered (Del g) | +11.4% | +5.1% | 4th highest of 12 |
| Hurdle (Req g minus delivered) | -2.5 pp | +5.6 pp | 5th least demanding of 12 |
| ROIC minus cost of capital | +4.3 pp | +1.5 pp | 5th highest of 13 |
| EV / EBITDA | 10.0× | 19.1× | 4th cheapest of 10 |
| Net debt / EBITDA | -1.4× | 2.0× | least indebted of 10 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Shin-etsu Chemical 4063.T | Japan | $66.5B | -27% | +5% | 25% | 17.2× | 8.9% | +11.4% |
| Air Products APD | United States | $67.9B | +4% | +5% | 24% | 21.2× | n/a | n/a |
| Basf BAS.DE | Germany | $52.6B | +2% | -4% | 7% | 16.8× | 5.7% | +0.2% |
| Ecolab ECL | United States | $84.3B | +19% | +9% | 18% | 33.6× | 19.7% | +6.4% |
| Air Liquide AI.PA | France | $134B | +15% | -1% | 21% | 29.0× | 18.1% | +5.6% |
| Novonesis A/S NSIS-B.CO | Denmark | $32.1B | +22% | +5% | 21% | 30.0× | 13.2% | +17.2% |
| Ems-chemie EMSN.SW | Switzerland | $24.3B | +28% | -3% | 30% | 39.4× | 8.6% | +1.6% |
| Ningxia Baofeng Energy 600989.SS | China | $23.4B | -31% | +35% | 35% | 8.4× | -7.8% | +24.8% |
| Dow DOW | United States | $22.7B | -14% | +4% | 5% | 14.8× | 4.3% | +0.7% |
| LyondellBasell LYB | United States | $19.6B | -15% | -2% | 10% | 9.5× | -10.3% | +1.7% |
| China Northern Rare Earth (Group) High-Tech 600111.SS | China | $19.6B | -31% | +29% | 11% | 28.5× | 24.6% | +14.2% |
| Linde LIN | United States | $237B | +5% | +8% | 27% | 27.0× | 14.4% | +4.5% |
| Hengli Petrochemical 600346.SS | China | $17.5B | -25% | -8% | 8% | 9.2× | -8.0% | +5.1% |