Shin-Etsu Chemical Co., Ltd.

The world's largest producer of PVC resin and of the silicon wafers on which semiconductors are built, and Japan's most consistently profitable chemical company.

Shin-Etsu Chemical's Botlek plant in Rotterdam, the Netherlands

Business Description

Shin-Etsu Chemical runs two very different franchises of comparable scale. Its PVC business, centred on the U.S. subsidiary Shintech, is the largest in the world by capacity and turns on North American housing construction; its electronics materials arm holds the top global share in 300mm silicon wafers, alongside photoresists, photomasks and rare-earth magnets.

Silicones, cellulose derivatives used in pharmaceuticals and construction, and synthetic quartz complete the range. Operating margins well above 20% — unusual for a producer of commodity chemicals — come from strict cost discipline and from the fact that the two main businesses rarely peak at the same time. The company was founded in 1926 to make nitrogenous fertiliser, taking its name from Shinshu and Etchu, the old provinces where it began.

Corporate Data

Ticker4063
ExchangeTokyo Stock Exchange
Market SegmentPrime Market
SectorChemicals
Head OfficeMarunouchi Eiraku Building, 1-4-1 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan
FoundedSeptember 16, 1926
Fiscal Year EndMarch 31
WebsiteOfficial website

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