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Rankings/SHECY/Q2 2023 Analysis

Shin-Etsu Chemical (ADR)

SHECY
Q2 2023(SHECY Q4 FY2023)Estimated1.5% AI
AI Revenue %
1.5%
AI Fair Value
$408.0M
AI Revenue (Q)
$56.3M
Total Revenue (Q)
$3.8B

Analysis

FY2023 Q4 (Jan-Mar 2023): Semiconductor downturn continued. Full year FY2023 revenue ~¥2.39T (~$17.9B). Semiconductor Materials segment ~¥980B (~40% of total). The AI narrative was building (ChatGPT momentum, NVIDIA order surge) but physical wafer demand for AI chips had not yet materialized in a meaningful way — TSMC was still ramping N4/N5 for AI GPUs and lead times for wafer orders are long. Shin-Etsu management in earnings calls discussed 'recovery in semiconductor demand' without specific AI mentions. No basis to increase AI % yet. Math: ¥2.39T × 1.5% / 4 quarters = ~¥9.0B (~$67M) per quarter estimated AI revenue.
Analyzed by claude-opus-4-6

Quoted Figures

FY2023 full year consolidated net sales ¥2,388.8 billion, operating income ¥708.7 billion
Shin-Etsu Chemical FY2023 Annual Results
Semiconductor Materials segment sales approximately ¥980 billion in FY2023
Shin-Etsu Chemical FY2023 segment data

AI Products Identified (Ring 1)

300mm silicon wafers for leading-edge AI chip nodesEPI wafers for advanced logicPhotoresists for EUV lithography

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)300mm wafers for mature nodesPVC/Chlor-Alkali segmentSilicones segmentSpecialty Chemicals segmentElectronics & Functional Materials

Confidence Tier

EstimatedNo direct AI revenue disclosure — estimated from product mix