Japanese chemicals supplier Showa Denko looks to further hike prices and cut back unprofitable product lines in response to the economic challenges confronting the semiconductor industry, Bloomberg reports.
The move comes despite a dozen hikes already this year, reflecting the lockdown-induced supply crisis, surging energy costs from the Ukraine war, and the weakening yen CFO Hideki Somemiya acknowledged in an interview.
He added that the situation is unlikely to improve until at least 2023 significantly. He saw the weak yen further pushing up the cost of raw materials, further limiting its options.
Showa Denko also terminated the sale of certain unprofitable commodity products and contracts….