Shinko Electric Industries
Basic Information
- Stock Code
- 6967
- Industry
- Electric Equipment
- Prefecture
- Nagano Prefecture
- Establishment Year
- September 1946
- Listing Year
- December 1984
- Official Website
- https://www.shinko.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
Overview
Shinko Electric Industries is an electrical equipment manufacturer founded in 1946, leading the industry in the design and manufacture of semiconductor lead frames and flip chip packages, and providing high-quality electronic components as a consolidated subsidiary of Fujitsu.
Current Situation
Shinko Electric Industries recorded consolidated sales of approximately 215 billion yen, operating profit of approximately 25.4 billion yen, and net profit of approximately 17.9 billion yen for the fiscal year ending March 2025, maintaining solid performance. In its core semiconductor lead frame production, it has achieved stable supply to major customers such as Intel, with production bases established at multiple factories domestically and internationally. Since 2023, a sale to JIC Capital has been underway, with delisting from the Tokyo Stock Exchange Prime Market scheduled for June 2025. In technological innovation, it is focusing on improving the quality of flip chip packages and reducing power consumption to strengthen its industry competitiveness. It is also advancing environmental considerations, promoting energy-saving measures at factories and waste reduction. In the medium to long term, it aims to flexibly respond to fluctuations in semiconductor demand while exploring market development in China and Southeast Asia. Its financial foundation is solid, and backed by support from the Fujitsu Group, it seeks to sustain growth. Recent personnel changes are also drawing attention, with efforts underway to strengthen the management structure.
Trivia
Interesting Facts
- Shinko Electric Industries began manufacturing semiconductor lead frames in 1957.
- Established a subsidiary in California, USA, for global expansion.
- Core electronic component supplier within the Fujitsu Group.
- Regional company with multiple factories in Nagano Prefecture.
- Long-term supplier track record to major semiconductor maker Intel.
- Scheduled for delisting from Tokyo Stock Exchange Prime Market in 2025.
- Member company of the Furukawa Group.
- Differentiates from competitors with proprietary flip chip technology.
- Capital of approximately 24.2 billion yen, among the largest in the industry.
- Large-scale manufacturing company with over 5,700 employees.
- Going private progressing via JICC-04 Co., Ltd.
- Highly evaluated in the industry for environmentally responsive manufacturing processes.
- Established in 1946 by spinning off from Fujitsu's Nagano branch.
- Also excels in ceramic electrostatic chuck technology.
- Products supplied not only domestically but also to overseas semiconductor manufacturers.
Hidden Connections
- As a consolidated subsidiary of Fujitsu, closely involved in Fujitsu's semiconductor manufacturing strategy.
- Sale progressing through collaboration with Industrial Innovation Investment Corporation (JIC), Dai Nippon Printing, and Mitsui Chemicals.
- Belongs to the Furukawa Group, with strong trading relationships with numerous affiliates.
- Positioned as a major supplier to overseas semiconductor giant Intel.
- Contributes to regional industry revitalization in Nagano and Fukushima Prefectures.
- Collaborates with Fujitsu Group companies on technology sharing and product development.
- Strengthening ties with overseas investors through stock acquisition by JICC-04.
- Leverages inter-industry networks as a member of the Furukawa Sansui Association.
Future Outlook
Growth Drivers
- Increasing parts demand accompanying global semiconductor demand expansion
- Advances in high-function flip chip package technology
- Stable revenue from long-term transactions with major domestic and international customers
- Surge in demand for products compliant with environmental regulations
- Growth in digitalization and IoT sectors
- Increasing demand for automotive components due to vehicle electrification
- Cost reductions through production technology automation
- Strengthened strategic collaboration with Fujitsu Group
- Sales expansion targeting China and Southeast Asia markets
- Improved product competitiveness through innovative material development
- Flexible business strategy responding to semiconductor-related industry restructuring
- Brand strengthening centered on high quality and reliability
Strategic Goals
- Achieve 70% sales ratio for high-value-added package products
- Achieve carbon neutrality in production processes
- Increase revenue through global market share expansion
- Market launch of diverse next-generation products and business diversification
- Capital strengthening through collaboration with JIC and related investors
- Achieve world-class Environmental, Social, and Governance (ESG) standards
- Efficiency improvements via production automation and digital technology introduction
- Achieve annual sales exceeding 250 billion yen through new market development
- Enhance domestic and international talent development and technology succession systems
- Build long-term customer relationships through improved customer satisfaction
Business Segments
Parts for Semiconductor Manufacturing Equipment
- Overview
- Providing high-quality and precise electronic components to manufacturing equipment makers.
- Competitiveness
- Technological strength and reliability through collaboration with the Fujitsu Group.
- Customers
-
- Semiconductor manufacturers
- Electronic equipment manufacturing equipment manufacturers
- Major semiconductor foundries
- Industrial equipment manufacturers
- Products
-
- Lead frames
- Flip chip packages
- Glass terminals
- Heat spreaders
- Ceramic electrostatic chucks
Electronic Component Assembly Services
- Overview
- Providing precise IC assembly and inspection services.
- Competitiveness
- Established advanced technology and production management systems.
- Customers
-
- Semiconductor manufacturers
- Electronic equipment manufacturers
- Communications equipment manufacturers
- Products
-
- IC assembly
- Packaging services
Global Supply Chain
- Overview
- Leveraging a global parts supply network.
- Competitiveness
- Production and logistics systems spanning multiple countries.
- Customers
-
- Overseas semiconductor customers
- Electronic component trading companies
- Manufacturing OEM companies
- Products
-
- Lead frames
- Flip chip packages
Industrial Custom Parts
- Overview
- Design and manufacture of custom parts tailored to specific applications.
- Competitiveness
- Capability to meet diverse needs through technological development capabilities.
- Customers
-
- Industrial machinery manufacturers
- Automotive equipment manufacturers
- Products
-
- Custom heat spreaders
- Special glass terminals
New Technology Development Support
- Overview
- Joint research on cutting-edge technologies and development of proposed products.
- Competitiveness
- Accumulated technology over many years and research collaboration with Fujitsu.
- Customers
-
- Semiconductor research institutions
- Major electronics companies
- Products
-
- Material technology
- Packaging innovations
Competitive Advantage
Strengths
- High-precision processing technology
- Stable major customer base (Intel, etc.)
- Fujitsu Group support system
- Multi-site domestic and international production network
- Manufacturing technology incorporating environmental considerations
- Advanced quality control system
- Development capabilities in advanced package technology
- Long-term customer trust and contracts
- Ongoing technological innovation activities
- Strong capital base
- Competitive edge through specialization
- Diverse product portfolio
- High production efficiency
- Use of high-durability materials
- High recognition in the domestic market
Competitive Advantages
- Industry-leading lead frame precision and yield rate
- Strong trading relationships with major device makers like Intel
- Product differentiation through technical cooperation with Fujitsu Group
- State-of-the-art factory equipment and multi-location production capacity
- Provision of sustainable products meeting environmental standards
- Acquisition of new technologies through continuous R&D investment
- Reliability assurance via international standard certifications
- Customization capabilities and short lead-time shipping system
- Stable capital and solid financial foundation
- Expansion of global sales network
- Quality improvement management through precision evaluation equipment
- Strong brand power in the semiconductor package market
- Market risk diversification through diverse product lineup
- Achievement of high production technology and work standardization
- Top-class technological reliability in Japan
Threats
- Impact of semiconductor market business cycle fluctuations on performance
- Low-price offensives from overseas competitors
- Supply chain risks due to US-China trade friction
- Risk of declining competitiveness from delays in new technology adoption
- Rising raw material prices or procurement difficulties
- Cost increases from strengthened environmental regulations
- Political and economic risks at overseas factories
- Production adjustments due to sudden changes in semiconductor demand
- Decline in R&D capabilities due to difficulties in securing technical talent
- Impact of exchange rate fluctuations on earnings
- Risk of intellectual property rights infringement
- Risk of supply chain disruptions
Innovations
2023: Development of High-Performance Flip Chip Packages
- Overview
- Commercialization of next-generation flip chip packages combining low resistance and high reliability.
- Impact
- Improved product competitiveness and expanded supply to major customers
2024: Introduction of Environmentally Friendly Lead Frame Manufacturing Technology
- Overview
- Launch of new production lines achieving waste liquid reduction and energy efficiency improvements.
- Impact
- Reduced environmental impact and manufacturing costs
2022: Development of High-Durability Heat Spreader Products
- Overview
- Market launch of automotive heat spreaders with enhanced thermal management.
- Impact
- Contributes to new market development and sales growth
2025: Enhancement of Semiconductor Packaging Automation Processes
- Overview
- Significant improvement in production efficiency through introduction of the latest automated assembly equipment.
- Impact
- 20% increase in production capacity and quality stabilization
2023: Development of Ceramic Electrostatic Chucks Using New Materials
- Overview
- Successful prototyping of new chucks using high heat-resistant and high-insulation materials.
- Impact
- Improved product reliability and response to customer needs
Sustainability
- Maintaining wastewater and waste liquid recycling rate over 90% at factories
- Expanding introduction of renewable energy
- Promoting R&D of environmentally friendly materials
- Focus on labor safety and health with strengthened employee training
- Active participation in local environmental conservation activities
- Continuous acquisition of ISO14001 environmental management certification
- Advancing plans toward carbon neutrality
- Resource efficiency through active use of recycled materials
- CO2 emissions reduction via optimization of electricity usage
- Promoting environmental measures across the entire supply chain
- Product design improvements to reduce environmental impact