The following is a summary of the Sumco Corporation (SUMCF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• In Q1 2024, Sumco's sales and profits significantly surpassed their forecasts, elevating sales beyond the forecast by JPY6.5 billion.

• Operating income was approximately double the projected figure, eclipsing the forecast by JPY4.1 billion due to higher than anticipated volumes.

• For Q2 2024, Sumco anticipates a sequential sales increase of JPY5.5 billion to JPY99 billion. It assumes a dollar/yen rate of JPY150 to the $1, with projected operating income of JPY9 billion, ordinary income at JPY8 billion, and net income at JPY5 billion.

• The company plans an interim dividend of JPY10, maintaining a consolidated dividend payout ratio of 35.4%.

Business Progress:

• Sumco predicts a resurgence in 300-millimeter wafer shipments, emphasizing increasing demand for AI servers, which are predicted to boost leading-edge wafer demand to over 1 million per month in 2027.

• The company anticipates a growth in silicon wafer demand, specifically for logic and AI chips, with a potential rise from an average consumption of 420,000 - 430,000 wafers per month in 2024 to around 800,000 per month in 2027.

• In terms of competitiveness, Sumco is positioned for rapid growth as a limited number of wafer makers can produce industry-leading wafers.

• Sumco plans to negotiate its next round of Long Term Agreements (LTAs) in 2026, thanks to an improved market environment and favourable business conditions.

• The company assures its commitment to not overproduce and to maintain optimal inventory levels to ensure sustained profitability.

More details: SUMCO CORPORATION IR

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