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Socionext

6526.TMEDIUM

Custom SoC Design · Weight: 4%· Data as of 2026-05-03

Also in:AI

¥1,927.5+3.68%

6-month daily

Investment Thesis

Fabless custom SoC on TSMC 3nm/A14 for AI data center and automotive. FY2026 beat by 5.7% — revenue ¥200.8B, strong sequential recovery (Q1 ¥34.6B→Q4 ¥58.7B). FY2027 guide: ¥215B (+7.1%). Confirmed TSMC A14 tape-out H2 2026 + Arm Total Design partnership. 52% gross margin. Near-zero debt. AI hyperscaler capex $700B in 2026 = structural tailwind.

Risk

Net margin compressed 10.4%→4.3% in FY2026 — this is the key risk. Cause not fully disclosed (mix shift, ramp costs?). No named hyperscaler customer. FY2027 recovery to ¥10B net profit must deliver. Revenue still below FY2025 peak of ¥221.25B.

Monitoring Trigger

May 14 FY2026 full results — watch margin explanation and FY2027 guidance confirmation. TSMC A14 tape-out completion H2 2026 = technology risk cleared. Any named hyperscaler design win = significant upgrade catalyst.

Key Dates

2026-05-14earningsFY2026 full-year results — watch margin explanation and FY2027 guidance

2026-06-30rebalanceSemiannual portfolio rebalance

2026-H2catalystTSMC A14 tape-out completion — de-risks technology roadmap

Update History

2026-05-03evolveHOLD

View report →

FY2026 beat (¥200.8B, +5.7% vs guide). Net margin compressed 10.4%→4.3% — key risk. TSMC A14 and Arm partnerships confirmed. FY2027 guide ¥215B/¥10B net profit.

pe:40.3736.77supply_chain:2 entries (Fujitsu, unnamed hyperscaler)4 entries with TSMC A14 and Arm confirmedrisk:Revenue -14.8%Net margin 10.4%→4.3% compressionthesis:revenue recoveringFY2026 beat + FY2027 guide confirmed

Key Metrics

36.77

22.44

Fwd PE

2.45

P/B

6.0%

ROE

7.5%

Op Margin

D/E

2.8%

Div Yield

-¥4B

FCF

¥316B

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
Custom SoC Design	¥210B	100%	Networking, automotive radar, AI inference

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	Fujitsu	Legacy SoC (anchor customer since 2015 spinout)	Socionext formed from Fujitsu + Panasonic semiconductor divisions 2015[source](2015-03)
confirmed	TSMC	Advanced SoC manufacturing (3nm, A14)	Socionext developing high-performance compute chiplet on TSMC A14, taping out H2 2026. Prior products on TSMC 5nm/3nm.[source](2025)
confirmed	Arm (Total Design ecosystem)	AI data center chiplet architecture	Socionext Flexlets using Arm CSS and AGI CPU for hyperscale data centers announced March 2026[source](2026-03)
probable	Major US hyperscaler (unnamed)	AI inference/acceleration SoC	Referenced as 'major US data center customer' in IR. Hyperscaler capex $700B+ in 2026 = active ASIC procurement market.(2025)

Sources & References

↗StockAnalysis TYO:6526https://stockanalysis.com/quote/tyo/6526/↗Socionext TSMC A14 announcementhttps://socionextus.com/pressreleases/socionext-addresses-datacenter-infrastructure-customer-demands-for-advanced-socs-on-tsmc-a14-technology/↗Socionext Arm Total Designhttps://socionextus.com/pressreleases/socionext-collaborates-with-arm-to-advance-ai-data-center-infrastructure-with-arm-total-design/↗TipRanks FY2027 guidancehttps://www.tipranks.com/news/company-announcements/socionext-keeps-dividend-as-profit-halves-signals-earnings-rebound-in-fy-2027

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Kokusai Electric	37.06	30.51	16.35%	18.6%	+¥16B
Ibiden	112	62	11.5%	14.5%	-¥100B
Tokyo Electron	40.21	30.85	23.9%	24.2%	+¥398B
Advantest	54	44	49.3%	44.2%	+¥375B est.
SCREEN Holdings	23.29	17.85	19.8%	19.0%	+¥49.4B
Shin-Etsu Chemical	25	23.5	11.1%	24.7%	+¥346B
DISCO Corp	55.44	43	N/A	42.3%	+¥63.7B (OCF ¥133.5B minus capex ¥69.8B; capex doubled FY2025→FY2026)
Lasertec	44.17	45.06	43.0%	46.1%	+¥96B
Resonac Holdings	83.53	~31.6x	5.72%	4.3%	+¥24B
Renesas Electronics	Loss	17.78	-2.1% GAAP / ~10.5% Non-GAAP	33.7% Non-GAAP Q1 2026 (H1 guided 31.3%)	+¥364B (confirmed: OCF ¥453B minus capex ¥89B)
SUMCO	Loss	N/A	-1.54%	-0.8%	-¥11B
Socionext	36.77	22.44	6.0%	7.5%	-¥4B