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Shin-Etsu Chemical | Company Profile

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Shin-Etsu Chemical
A Japanese materials group that links rare earth separation to sintered neodymium magnets (focused on its magnet business)

Shin-Etsu Chemical is a diversified materials group known for semiconductor silicon, PVC and silicones. This profile covers only its rare earth magnets. The company has separated and refined rare earths since the 1960s and, according to its own timeline, began volume production of samarium-cobalt magnets in 1976 and neodymium magnets in 1986. Today it makes magnets in Japan, the Philippines, Thailand, Vietnam and China, centered on its Takefu Plant in Fukui Prefecture, and it cites products that use much less heavy rare earth, and recycling, as strengths. At the same time, magnet sales, profit and output are not disclosed. We write only what public documents let us confirm.

Built from: Shin-Etsu Chemical’s Annual Report 2026 (published August 2026), its Financial Section, summaries of the April and July 2026 earnings calls, and the company’s dedicated magnet website. Last updated October 2026.

In this article
  1. Shin-Etsu Chemical in 30 seconds, and where it sits in functional materials
  2. Logo and naming
  3. Where the company sits in functional materials
  4. Company size (brief)
  5. Resources committed to functional materials
  6. Track record so far
  7. Plans ahead
  8. What the company seems to be aiming for
  9. Partnership map in functional materials
  10. Technology, products and services
  11. Risks
  12. Glossary / References / Claim-to-source audit

1. Shin-Etsu Chemical in 30 seconds, and where it sits in functional materials

LEGAL NAMEShin-Etsu Chemical Co., Ltd.Japanese: Shin-Etsu Kagaku Kogyo K.K.
HEADQUARTERS AND FOUNDINGMarunouchi, Chiyoda-ku, Tokyo
Founded 16 September 1926
Company profile as of 31 March 2026
LISTINGTokyo and Nagoya
Securities code 4063
Magnets sit inside the Electronics Materials segment
COMPANY TYPEMaterials (primary)Core: sintered neodymium magnets (N Series) and rare earth separation and refining
CONSOLIDATED SALES, YEAR TO MARCH 2026¥2,573,969 millionElectronics Materials segment ¥1,015,765 million. Magnets alone not disclosed
MAGNET HISTORY1976 SmCo magnets
1986 NdFeB magnets
Company timeline; the company calls the 1976 start the world’s first commercial production
MAGNET SITESJapan, Philippines, Thailand,
Vietnam and China
Separation and refining at the Takefu Plant (Fukui)
STRENGTHS THE COMPANY CITESMuch less heavy rare earth,
and recycling
From the “competitive advantages” in Annual Report 2026
The one point to grasp first

Where MP Materials and Niron Magnetics are described as “new supply chains” for permanent magnets, Shin-Etsu Chemical is an established player that has linked rare earth separation and magnet manufacturing for decades Sourced. The company’s growth strategy as described in Annual Report 2026 centers on semiconductor-related products such as silicon wafers and photoresists, and magnets are one part of the Electronics Materials segment. Because magnet sales, output and profit are not disclosed, we cannot discuss the size of the business in numbers Not yet confirmed. What the company does publish is its technology and product grades for reducing the heavy rare earth content (terbium, dysprosium and others).

2. Logo and naming

Naming note: the legal name is Shin-Etsu Chemical Co., Ltd.. Its subsidiaries include Shin-Etsu Handotai (semiconductor silicon) and Shintech (U.S. PVC), but magnets are handled by Shin-Etsu Chemical’s Magnetic Materials Division and its overseas magnet subsidiaries; we keep these separate. In its English documents the company calls the year April 2025 to March 2026 “FY2025”; this article writes it as “the year to March 2026.” The logo is the one published on the company’s official website.

Official site: https://www.shinetsu.co.jp/en/

3. Where the company sits in functional materials

Four types of company in functional materials Strengths and customers differ across raw materials, parts, surfaces and new approaches Materials & raw-material makers Components & devices Coatings & surfaces Startups & new approaches Make raw materials Turn function into parts Add function to surfaces Commercialize new ideas MP Materials / Shin-Etsu Croda / Aspen Aerogels Murata / TDK Kyocera / Gentex PPG / AkzoNobel and others Niron / Metalenz Lumotive / Phononic Resources and scale Tied to prices and rules Design, quality, customers Tied to demand, approvals Formulation know-how Needs per-use approval Own technology, upside Scale-up and funding risk Shin-Etsu is a “Materials & raw-material maker”: rare earth separation through to magnets Magnets sit inside Electronics Materials (sales not disclosed); the company cites less heavy rare earth.
Fig. 1 The four types of company in functional materials, and where Shin-Etsu sits. The grouping is this article’s own, and the company names are examples from this series Our calculation. Shin-Etsu’s primary type is materials & raw materials; for magnets it covers rare earth separation and refining through to sintered magnets. It also makes assemblies such as magnetic circuits, but this article focuses on magnets as a material.

Shin-Etsu Chemical is a materials and raw-material maker, and its core in this field is the sintered neodymium (Nd-Fe-B) magnet. The company also makes magnetic circuits and magnet assemblies, including magnet assemblies for hard disk voice coil motors, but this article stays with magnets as a material. For the basics of permanent magnets, see our explainer on permanent magnets and rare earths; for technologies that reduce or avoid heavy rare earths, our explainer on rare-earth-free magnets helps. In this series, see also our profiles of MP Materials (rare earth mining, separation and magnets) and Niron Magnetics (a new iron-nitride magnet).

4. Company size (brief)

Company-wide size is below. The size of the magnet business is not disclosed Sourced.

Metric (¥ million)Year to March 2025Year to March 2026
Consolidated net sales2,561,2492,573,969
Consolidated operating income742,105635,204
Electronics Materials segment net sales934,3121,015,765
Electronics Materials segment operating income324,760344,537
R&D costs (whole company)73,12977,819
Capital expenditure (whole company)–339,706
Capital expenditure (Electronics Materials segment)245,500212,366
MetricFigureDate
Consolidated employees27,34231 March 2026
Electronics Materials segment employees13,56631 March 2026
Capital¥119,419 million31 March 2026
A caution

These are whole-company and whole-segment figures. According to the company, the main items in the Electronics Materials segment’s ¥212,366 million of capital spending were raising semiconductor silicon wafer quality and building photoresist production facilities; magnets are not named. Magnet sales, operating income, capital spending and R&D are all not disclosed, and this article does not estimate them Not yet confirmed.

5. Resources committed to functional materials

The table shows, for each of the four resource types, whether primary sources let us confirm it.

Resource typeDetailsStatus
PeopleMagnet headcount is not disclosed. The company has a Magnetic Materials Division and a Magnetic Materials Research Center at the Takefu Plant. The whole Electronics Materials segment has 13,566 employeesSourced (headcount not disclosed)
Money (capital spending and R&D)Magnet-only capital spending and R&D are not disclosed. The company timeline records capacity increases for magnet blocks and machining in Vietnam (2023, 2024), machining in Japan (2022) and magnet blocks at the Takefu Plant (2025), without amountsSourced (amounts not disclosed)
Outside investments, acquisitions, joint ventures, divestituresWe could not confirm any acquisition of or investment in another company in magnets. Overseas magnet production and sales run through subsidiaries (Philippines and Vietnam are wholly owned and consolidated, Thailand is an unconsolidated subsidiary, plus a unit in Fujian, China). In 2026 it began a recycling collaboration with Daikin Industries, Hitachi and Tokyo Eco Recycle. Separately, Proterial (formerly Hitachi Metals) states in its August 2025 notice that it licenses some of its sintered rare earth magnet patents to Shin-Etsu Chemical, with restrictions on manufacturing and sales for ChinaSourced (acquisitions not found)
University, research-institute and public-funding linksAnnual Report 2026, the earnings-call summaries and the magnet website mention no joint research with universities or national laboratories and no public subsidies for magnets that we could confirmNot found

Status of key sites and facilities

Site / facilityDetails (company timeline and documents)StageDateSource
Takefu Plant (Echizen, Fukui Prefecture)Rare earth separation and refining (volume production from 1967; a solvent-extraction mass-production plant in 1987). Houses the Magnetic Materials Research Center. Magnet block capacity increased in 2025OperatingFounded 1945; through 2025References 10, 14
Asahi Branch Plant (Japan)Machining of sintered magnets and magnetic-circuit assembly. Grain boundary diffusion (GBDP) mass production started in 2012. Machining capacity increased in 2013 and 2022OperatingFrom 1984Reference 10
Vietnam subsidiary (Haiphong)Recycling started in 2013, magnet block process in 2016, machining in 2019; capacity increased in 2023 and 2024. An employee message in the Annual Report describes integrated production from refining and recycling through finished magnets, and mentions a project to build a new plantOperating (new plant is a plan)2013-2024References 3, 10
Philippines, Thailand and China (Fujian) subsidiariesOperations started in the Philippines in 1999, Thailand in 2006 and Changting, Fujian, in 2013Operating1999-2013References 10, 11
RecyclingMagnet powder from processing has been recycled since 2007, and used magnets since March 2013 (company statements). From 2026 the company is developing automation equipment for Japan’s first circular system for magnets from commercial air-conditioner compressors, with full-scale operation planned for 2027Operating / planned2007 to 2027 (plan)Reference 1
A materials engineer’s view: earning coercivity only where it is needed, with heavy rare earths

Neodymium magnets in general tend to lose magnetization when exposed to a reverse field in a hot motor, and the property that resists this is coercivity (HcJ) (a general explanation). Heavy rare earths such as terbium and dysprosium are used to raise coercivity. The company describes its grain boundary diffusion alloy method as a technology that “places a small amount of heavy rare earth in the right position to dramatically increase coercivity,” and says that concentrating heavy rare earth near the grain boundaries raises coercivity further and suppresses the loss of remanence compared with the conventional “two-alloy method” Sourced. Its timeline records that development began in 2004, production of N-series magnets with this process started in 2008, and mass production in 2012.

In the N Series lineup the company publishes (manufacturer’s stated values), compare two grades in the “N52” class: N52-F (perpendicular-field press type) has Br 1.41-1.47 T and HcJ of at least 995 kA/m, while N52UH-HGF (grain boundary diffusion type) has Br 1.40-1.46 T and HcJ of at least 1,910 kA/m. With nearly the same Br range, the lower limit of HcJ is about 1.9 times higher (1,910 ÷ 995) Our calculation. This compares two products within one company’s own table; it says nothing about superiority over other makers’ products. The table gives no test temperature or other conditions, so coercivity at operating temperature cannot be read from it.

6. Track record so far

WhenEventMeaning
1945Takefu Plant establishedBase for rare earths and magnets
1961-1969Rare earth research begins (1961), volume separation and refining (1967), samarium production (1969)Accumulating raw-material-side technology
1970-1976Research into rare earth magnets begins (1970). SmCo magnet volume production starts in Japan in 1976 (the company calls it the world’s first commercial production)Start of the magnet business
1983Mass production of magnets for hard disk voice coil motorsHDDs a long-standing main use
1985-1986Trial production of NdFeB magnets (1985); volume production in Japan and a nickel-plating technique established (1986)The mainstay Nd-Fe-B magnet
1987Rare earth solvent-extraction mass-production plant builtVolume separation and refining
1998-2006Fully automated magnet plant (1998); operations start in the Philippines (1999) and Thailand (2006)Overseas production expands
2004-2012Grain boundary diffusion process (GBDP) developed (2004), N-series production starts (2008), mass production at the Asahi Branch Plant (2012)Using heavy rare earths efficiently
2007-2013Recycling plant (2007), recycling operations in Japan (2008) and Vietnam (2013), a Fujian, China, site (2013)Resource circulation
2016-2019Magnet block process (2016) and machining (2019) start in VietnamForming an integrated production site
2022-2025Machining capacity increased in Japan (2022); block and machining capacity in Vietnam (2023, 2024); magnet block capacity at Takefu (2025)Expanding supply capacity
2026Began a collaboration with Daikin Industries, Hitachi and Tokyo Eco Recycle to recover and reuse magnets from commercial air-conditioner compressors. In the April and July earnings calls it mentioned reducing heavy rare earth use and handling raw-material issuesResponding to supply risk

7. Plans ahead

AIR-CONDITIONER MAGNET RECYCLING SYSTEMFull operation in 2027Automation equipment developed in 2026; company plan
LESS HEAVY RARE EARTHFurther measures
by end of 2026
Statement on the April 2026 earnings call (target)
NEW VIETNAM PLANTPlannedEmployee message in the Annual Report; scale and timing not disclosed
MAGNET SALES AND CAPACITYTargets not disclosedNo numerical target in published documents

All of these are company plans or statements, not things already achieved Not yet confirmed.

What we could not confirm

None of the following was found in official sources Not yet confirmed.

Magnet sales, operating income, output and global share / capital spending for magnets / the scale, investment and start-up date of the new Vietnam plant / names of major customers (the company mentions only HDD and automotive uses) / heavy rare earth sources and inventories / joint research with universities or public institutions.

8. What the company seems to be aiming for

This section includes things the company does not say directly. They are inferences from what primary sources show, given with their grounds.

What we read from the recordPrimary-source groundsStatus
Its strength is integration from raw material to productAnnual Report 2026 lists, as a magnet competitive advantage, an integrated production system starting from raw materials and stable supply from multiple sitesSourced
Differentiation rests on less heavy rare earth and recyclingThe same place lists “products that substantially reduce the use of heavy rare earth materials and promotion of recycling”Sourced
The 2026 statements are a response to China’s export controls and heavy rare earth supplyThe April and July 2026 earnings calls mention reducing heavy rare earth use and “multiple measures” on raw-material issues. In April 2025 China placed items including dysprosium and terbium under export controlInference
Magnets are not the center of company-wide growthThe growth discussion in Annual Report 2026 centers on semiconductors (AI, data centers, the new Isesaki Campus); magnets appear as examples of useInference
It is building Vietnam into the core of integrated productionFrom recycling (2013) to blocks and machining (2016-2019), capacity increases (2023-2024) and a new-plant projectInference
One ground, in more detail

The summary of the April 2026 earnings call says that for magnetic materials the company is working on “multiple measures to address raw material issues, including finding ways to further reduce the use of heavy rare earths by the end of this year.” In July it said it was working with customers on emergency measures to minimize the use of heavy rare earths Sourced. The company does not state why, but China’s Ministry of Commerce, in Announcement No. 18 of 4 April 2025, put items related to medium and heavy rare earths such as dysprosium and terbium under export control Sourced. Putting the two together, the company’s moves read as a defense against heavy rare earth supply risk. The company has not said so itself; this is our interpretation Not yet confirmed.

9. Partnership map in functional materials

Sites and collaborations around Shin-Etsu’s magnet business Only relationships in the company timeline and Annual Report; the company does not name customers Shin-Etsu Magnets Vietnam unit (Haiphong) Recycling to machining (2013-) Philippines unit Magnet production (1999-) Thailand unit Magnets (2006-); unconsolidated Fujian (China) unit Changting; started 2013 Daikin Industries Magnet recovery, reuse (2026-) Hitachi Magnet recovery, reuse (2026-) Tokyo Eco Recycle Magnet recovery, reuse (2026-) Joint initiative Own overseas manufacturing subsidiary (equity)
Fig. 2 Sites and collaborations around Shin-Etsu Chemical’s magnet business. Sources: Annual Report 2026, the timeline and site list on the company’s magnet website, and the Financial Section (list of consolidated subsidiaries). Only relationships stated in official documents are shown; customers are omitted because the company does not name them. The documents do not describe how the three recycling partners divide the work.

10. Technology, products and services

The core product is the sintered neodymium magnet “N Series.” The company describes it as composed mainly of neodymium, iron and boron, using the relatively abundant neodymium and iron as main raw materials, and lists uses such as drive motors and generators for HEVs, EVs and FCVs, electric power steering, industrial motors, home-appliance motors (air-conditioner compressors and others), and actuators for digital cameras and smartphone cameras Sourced. It also supplies magnet assemblies for hard disk voice coil motors.

Type (manufacturer’s stated)Representative gradeRemanence Br [T]Coercivity HcJ [kA/m]Maximum energy product (BH)max [kJ/m³] (MGOe)
Perpendicular-field press typeN52-F1.41-1.47at least 995382-422 (48-53)
Perpendicular-field press typeN50TH-MF1.38-1.44at least 1,353366-406 (46-51)
Grain boundary diffusion typeN52UH-HGF1.40-1.46at least 1,910374-422 (47-53)
Grain boundary diffusion typeN50UH-HGF1.38-1.44at least 1,989358-406 (45-51)
Parallel-field press typeN31ZA1.07-1.14at least 2,387207-255 (26-32)

The values above are the manufacturer’s stated grade ranges from the company’s “N Series lineup,” and coercivity is a lower limit (“at least”). The table gives no test temperature or method. This article does not set these figures against values measured under other conditions or against other makers’ products Sourced. The company’s process description runs from separating and refining high-purity oxides from rare earth ore, through melting in a vacuum induction furnace, fine milling (a few microns), compaction in a magnetic field (to give anisotropy), and sintering (density rises from about 50% of true density to nearly 100%, with volume falling by about half), then aging, magnetic-property inspection, machining and plating.

A materials engineer’s view: field-aligned pressing and the perpendicular-versus-parallel trade-off

According to the company, compaction in a magnetic field comes in two forms: perpendicular-field pressing, with the field perpendicular to the pressing direction, and parallel-field pressing. At equal grade the perpendicular method gives higher performance, but ring magnets can only be pressed in parallel Sourced. The table above fits this: the perpendicular-pressed grades show Br around 1.4 T, while the parallel-pressed N31ZA is 1.07-1.14 T with a very high coercivity. Shape constraints (ring or plate) set the attainable ceiling. The company also says that, because sintering shrinks the part, the magnets are ground to size with diamond abrasives, and that Nd-Fe-B magnets, which rust easily, are given nickel or paint surface treatments. A magnet’s performance is thus set not only by composition but by the whole process, including pressing direction, shape and surface treatment.

11. Risks

RiskDetailsStatus
Heavy rare earth supplyIn 2026 the company mentioned reducing heavy rare earth use and multiple measures on raw-material issues. China’s Ministry of Commerce put items related to dysprosium, terbium and others under export control in Announcement No. 18 of 4 April 2025. We did not verify later measures or their suspension against government documentsSourced (extent of impact not found)
Opacity of the magnet businessWith no magnet sales, profit or output disclosed, outsiders cannot check profitability or competitivenessSourced
Concentration of usesThe company cites strong HDD demand and growth in automotive. We cannot quantify the effect of demand swings in one use from published documentsInference
Patent exclusivity and alternativesFor its grain boundary diffusion alloy patents the company states that it does not license third parties. Patents expire, and alternative diffusion methods or magnets that avoid heavy rare earths (covered elsewhere in this series) could change the differentiationInference
Relationship to company-wide prioritiesThe company’s growth investment is concentrated in semiconductor materials; the priority given to magnets cannot be read from the documentsInference
Delivery of the recycling collaborationThe air-conditioner magnet circular system is planned for full-scale operation in 2027; recovery volumes and economics are undisclosedSourced (target not yet confirmed)

12. Glossary

Sintered neodymium magnet
A magnet made by pressing neodymium-iron-boron powder in a magnetic field and sintering it at high temperature; the strongest commercial permanent magnet for motors.
Remanence (Br)
The strength of magnetic flux remaining in a magnet after magnetization. Unit: T (tesla).
Coercivity (HcJ)
Resistance to demagnetization by a reverse field. Unit: kA/m (or Oe).
Maximum energy product ((BH)max)
A representative measure of magnet performance. Unit: kJ/m³ (or MGOe).
Grain boundary diffusion
Diffusing heavy rare earths into a sintered magnet from the grain boundaries to raise coercivity.
Heavy rare earths
Terbium, dysprosium and others, used in small amounts to raise coercivity.
Perpendicular / parallel-field pressing
In field-aligned pressing, whether the field is perpendicular or parallel to the pressing direction. Perpendicular performs better; rings need parallel.
Voice coil motor (VCM)
The motor that moves the head in a hard disk drive; it uses magnets.
Rare-earth separation is distinguished from magnet manufacture and inspection
Figure 3. Conceptual image generated with ImageGen. Rare-earth separation is distinguished from magnet manufacture and inspection. Factory layout and formulation are not reproduced. Not an actual company product, factory or measured result.

13. References

  1. Shin-Etsu Chemical Annual Report 2026 (published August 2026). Business overview, magnet competitive advantages, recycling history, the collaboration with Daikin Industries and others, Electronics Materials segment figures and headcount. https://www.shinetsu.co.jp/wp-content/uploads/2026/08/Annual-Report_2026.pdf
  2. Shin-Etsu Chemical Financial Section for the year ended 31 March 2026 (Annual Report 2026). Consolidated results, segment sales and operating income, capital expenditure, R&D costs, list of consolidated subsidiaries. https://www.shinetsu.co.jp/wp-content/uploads/2026/08/Financial-Section.pdf
  3. Shin-Etsu Chemical Annual Report 2025, “Sources of Our Competitiveness.” Integrated production at the Vietnam plant and the new-plant plan (employee message). https://www.shinetsu.co.jp/wp-content/uploads/2025/07/Sources-of-Our-Competitiveness.pdf
  4. Shin-Etsu Chemical Annual Report 2025, “Business Activity.” Magnet strength relative to ferrite, sales policy for HDD and automotive uses, Electronics Materials figures. https://www.shinetsu.co.jp/wp-content/uploads/2025/07/Business-Activity.pdf
  5. Shin-Etsu Chemical Summary of the telephone conference on results for the year ended 31 March 2026 (28 April 2026). Remarks on raw-material issues and reducing heavy rare earth use in magnetic materials. https://www.shinetsu.co.jp/wp-content/uploads/2025/08/20260428_summary_E.pdf
  6. Shin-Etsu Chemical Summary of the telephone conference on results for the first quarter ended 30 June 2026 (24 July 2026). Remarks on emergency measures to minimize heavy rare earth use. https://www.shinetsu.co.jp/wp-content/uploads/2026/08/20260724_summary_E.pdf
  7. Shin-Etsu Chemical Company profile as of 31 March 2026. Address, founding, capital, consolidated employees, main products. https://www.shinetsu.co.jp/en/company/profile/
  8. Shin-Etsu Chemical Product page, “Neodymium magnet” (description of the N Series and its uses). https://www.shinetsu.co.jp/en/products/electronics-materials/neodymium-magnet/
  9. Shin-Etsu Chemical Rare earth magnet website, “N Series Lineup” (magnetic properties by grade). https://www.shinetsu-rare-earth-magnet.jp/e/products/data_nd.html
  10. Shin-Etsu Chemical Rare earth magnet website, “Shin-Etsu History” (magnet business timeline, 1945-2025). https://www.shinetsu-rare-earth-magnet.jp/e/profile/history.html
  11. Shin-Etsu Chemical Rare earth magnet website, “Network” (head office, plants and overseas sites). https://www.shinetsu-rare-earth-magnet.jp/e/profile/network.html
  12. Shin-Etsu Chemical Rare earth magnet website, “Raw material to sintering Block” (separation, melting, compaction and sintering) and the machining and plating pages. https://www.shinetsu-rare-earth-magnet.jp/e/masspro/sintering_p.html
  13. Shin-Etsu Chemical Rare earth magnet website, “Announcement GPD alloy method” (patent notice and technical explanation of grain boundary diffusion). https://www.shinetsu-rare-earth-magnet.jp/e/notice/
  14. Shin-Etsu Chemical Shin-Etsu Rare Earth website (ISO 9001 and ISO 14001 statement for the Takefu Plant). https://www.rare-earth.jp/en/
  15. Ministry of Commerce and General Administration of Customs of the People’s Republic of China Announcement No. 18 of 2025, “Announcing the decision to implement export control on some medium and heavy rare earth related items” (4 April 2025; English version). https://english.mofcom.gov.cn/Policies/AnnouncementsOrders/art/2025/art_0dd87cbee7b045bf93fabe6ab2faceee.html
  16. Google Patents US7488393B2, “Rare earth permanent magnet” (applicant: Shin-Etsu Chemical). Used to confirm a number listed in the patent notice for the grain boundary diffusion alloy method. https://patents.google.com/patent/US7488393B2/en
  17. Shin-Etsu Chemical Consolidated financial results for the first quarter ended 30 June 2026 (24 July 2026). A strategy slide lists “raw materials issues for magnetic materials business.” https://www.shinetsu.co.jp/wp-content/uploads/2026/07/20260724_con_E.pdf
  18. Shin-Etsu Chemical Official website (source of the logo). https://www.shinetsu.co.jp/en/
  19. Proterial Notice, “Sintered Nd-Fe-B Magnets” (5 August 2025): patents and licensees, including Shin-Etsu Chemical. https://www.proterial.com/e/pdf/pi20250805ec.pdf

14. Claim-to-source audit

Claim in the textStatusSource
Legal name, headquarters, founding, capital, 27,342 consolidated employees, main product categoriesSourcedReference 7 https://www.shinetsu.co.jp/en/company/profile/
Electronics Materials business (including rare earth magnets), segment sales and operating income, capital spending overview, R&D costs, consolidated sales and operating incomeSourcedReference 2 https://www.shinetsu.co.jp/wp-content/uploads/2026/08/Financial-Section.pdf
Electronics Materials employees (13,566), magnet competitive advantages (integration, less heavy rare earth, recycling), recycling history, the collaboration with Daikin Industries and othersSourcedReference 1 https://www.shinetsu.co.jp/wp-content/uploads/2026/08/Annual-Report_2026.pdf
Magnet strength about 10 times that of ferrite (company statement), the HDD and automotive sales policySourced (company statement)Reference 4 https://www.shinetsu.co.jp/wp-content/uploads/2025/07/Business-Activity.pdf
Vietnam plant integration and new-plant plan (employee message)Sourced (plan not yet confirmed)Reference 3 https://www.shinetsu.co.jp/wp-content/uploads/2025/07/Sources-of-Our-Competitiveness.pdf
Mentions of heavy rare earths and raw-material issues on the April and July 2026 earnings callsSourcedReference 5, 6 https://www.shinetsu.co.jp/wp-content/uploads/2025/08/20260428_summary_E.pdf https://www.shinetsu.co.jp/wp-content/uploads/2026/08/20260724_summary_E.pdf
N Series uses and the description of neodymium magnetsSourcedReference 8 https://www.shinetsu.co.jp/en/products/electronics-materials/neodymium-magnet/
Grade values in the N Series lineup (manufacturer’s stated)Sourced (manufacturer’s stated)Reference 9 https://www.shinetsu-rare-earth-magnet.jp/e/products/data_nd.html
Magnet business timeline (1976 SmCo, 1986 NdFeB, 2004 GBDP development, site openings and expansions)SourcedReference 10 https://www.shinetsu-rare-earth-magnet.jp/e/profile/history.html
List of overseas magnet sites (Philippines, Thailand, Vietnam, China)SourcedReference 11 https://www.shinetsu-rare-earth-magnet.jp/e/profile/network.html
Sintering, compaction, machining and plating processes; perpendicular and parallel pressingSourcedReference 12 https://www.shinetsu-rare-earth-magnet.jp/e/masspro/sintering_p.html
Patent notice for the grain boundary diffusion alloy method (use of heavy rare earths, no third-party licensing)SourcedReference 13 https://www.shinetsu-rare-earth-magnet.jp/e/notice/
ISO 9001 and ISO 14001 at the Takefu Plant (rare earth manufacturing)SourcedReference 14 https://www.rare-earth.jp/en/
MOFCOM / General Administration of Customs Announcement No. 18 of 2025 (4 April 2025)SourcedReference 15 https://english.mofcom.gov.cn/Policies/AnnouncementsOrders/art/2025/art_0dd87cbee7b045bf93fabe6ab2faceee.html
Proterial licenses some of its sintered rare earth magnet patents to Shin-Etsu Chemical (restricted for China)Sourced (Proterial notice)Reference 19 https://www.proterial.com/e/pdf/pi20250805ec.pdf
U.S. patent record for the grain boundary diffusion alloy method (US7488393B2 and others)SourcedReference 16 https://patents.google.com/patent/US7488393B2/en
The fiscal-year strategy slide on “raw-material issues for the magnetic materials business”SourcedReference 17 https://www.shinetsu.co.jp/wp-content/uploads/2026/07/20260724_con_E.pdf
Magnet sales, operating income, output, share, capital spending and R&DNot yet confirmedNot stated in official sources; this article makes no estimate Reference 1 https://www.shinetsu.co.jp/wp-content/uploads/2026/08/Annual-Report_2026.pdf
Acquisitions of or investments in other companies in magnets; joint research with universities or public institutionsNot yet confirmedNot stated in official sources; we do not assert they do not exist Reference 1 https://www.shinetsu.co.jp/wp-content/uploads/2026/08/Annual-Report_2026.pdf
Test temperature and method for the N Series figuresNot yet confirmedNot stated in the lineup; this article does not infer them Reference 9 https://www.shinetsu-rare-earth-magnet.jp/e/products/data_nd.html
Ratio of HcJ lower limits between N52-F and N52UH-HGF (about 1.9 times)Our calculationThis article’s calculation (1,910 ÷ 995); a comparison within one company’s table, not against other makers
The 2026 heavy rare earth statements respond to China’s export controlsInferenceThis article’s interpretation (the company gives no reason)
Magnets are not the center of company-wide growthInferenceThis article’s interpretation (the growth discussion centers on semiconductors)
Vietnam is being built into the core of integrated productionInferenceThis article’s interpretation (from the timeline)
Risks on concentration of uses, patent expiry and alternatives, and investment priorityInferenceThis article’s interpretation
The four company types (materials, components, coatings, new approaches)Our calculationThis article’s own grouping; company names are examples from this series

Last updated 10 October 2026 / Troy Technical
Figures in this article come from Shin-Etsu Chemical’s Annual Reports, summaries of its earnings calls and its dedicated magnet website, and from an official announcement by China’s Ministry of Commerce. Magnet figures are limited to what the company has published. No research-firm estimates or press-only figures have been used. Passages marked “Inference” are this article’s interpretation of primary sources, not statements made by the company.

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