Now we will move on to Semiconductors & Electronics (SE) segment.
Semiconductor prices have slightly peaked out. After the increasing orders last year, the book-to-bill ratio fell below 1.0 and is now beginning to exceed 1.0 again. However, costs increased comparing to the previous year due to the low utilization rate. Equipment and machinery will be installed in the Shiga plant for the next fiscal year. Although it generated an annual loss of about 1.5 billion yen, it should start making a profit in the middle to second half of the next fiscal year. We are very excited to see it serve as a key production site for power semiconductors.
The market for power semiconductors is expected to grow five times to 13.43 trillion yen, and SiC and other next-generation semiconductors is expected to grow 31.2 times to 5.45 trillion yen in 2035 compared to 2022. Therefore, with regards to semiconductors, we feel that there is nothing to be worried about.
What drove profit down year on year was OIS. There were multiple factors involved such as lower prices and seasonality. We will work on improving costs and securing a market share for the upcoming models to regain profitability.
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