Tri Chemical Laboratories cuts forecast, forms China joint venture

Tri Chemical Laboratories Inc. revised its consolidated financial results forecasts for the fiscal year ending January 31, 2026. The company now expects net sales of 23,000 million yen, down 11.5% from the previously announced 26,000 million yen. Operating profit is projected at 5,500 million yen (down 9.1%), ordinary profit at 6,530 million yen (down 5.4%), and profit attributable to owners of parent at 4,800 million yen (down 4.0%). This revision is primarily due to lower-than-expected shipments of high-k materials, driven by reduced consumption and inventory streamlining by major customers in China.

Concurrently, TCL announced the establishment of a joint venture in China with Hefei ADChem Semi-Tech. Co., Ltd., to manufacture, sell, and develop high-purity precursors for semiconductors. The new entity, tentatively named AD-Trichem (Anhui) Electronic Materials Co., Ltd., will have a capital of 100 million yuan and is expected to be established in September 2025. TCL will hold a 33% equity stake, with ADChem holding 67%. Plant construction is slated to begin in the first half of 2026.

This joint venture aims to capitalize on the rapidly growing Chinese semiconductor market and the local sourcing of materials. While the collaboration is expected to have a minimal impact on the company's performance in the current fiscal year, it strategically positions TCL for future growth in advanced semiconductor materials.