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Rankings/SHECY/Q4 2023 Analysis

Shin-Etsu Chemical (ADR)

SHECY
Q4 2023(SHECY Q2 FY2024)Estimated2.5% AI
AI Revenue %
2.5%
AI Fair Value
$680.0M
AI Revenue (Q)
$93.8M
Total Revenue (Q)
$3.8B

Analysis

FY2024 Q2 (Jul-Sep 2023): TSMC and Samsung leading-edge fabs running at higher utilization for AI chips. NVIDIA H100 production at full tilt. HBM DRAM production also ramping (Samsung, SK Hynix), requiring additional wafers. Shin-Etsu benefits both from leading-edge logic wafers (for AI GPUs/TPUs) and from memory wafers (for HBM). Total revenue ~¥580B (~$3.9B). Semiconductor Materials ~40% = ~¥232B. AI chip wafer demand now more visible: TSMC's HPC segment (includes AI) was ~40% of TSMC revenue, and TSMC is Shin-Etsu's largest customer. However, Shin-Etsu's wafer mix serves all TSMC nodes, not just leading-edge. Conservative increase to 2.5%. Math: ¥580B × 2.5% = ~¥14.5B (~$98M) estimated AI revenue.
Analyzed by claude-opus-4-6

Quoted Figures

TSMC HPC segment (including AI accelerators) reached 42% of revenue in Q3 2023
TSMC Q3 2023 earnings
SK Hynix and Samsung ramped HBM3 production, increasing demand for advanced DRAM wafers
Industry reports, Q3 2023

AI Products Identified (Ring 1)

300mm EPI wafers for leading-edge AI chip nodes (N5/N4/N3)Advanced DRAM wafers for HBM productionPhotoresists for EUV multi-patterningPellicles for EUV

AI-Enabled Items (Ring 2 — Not Counted)

These items use AI but are not counted in the AI revenue estimate because they primarily serve non-AI functions.

200mm silicon wafers (automotive, IoT, industrial)300mm wafers for mature logic nodes300mm wafers for non-HBM memoryPVC/Chlor-Alkali segmentSilicones segmentSpecialty ChemicalsElectronics & Functional Materials

Confidence Tier

EstimatedNo direct AI revenue disclosure — estimated from product mix