Yaskawa Electric (6506.T): Conf. Call Takeaways: Focus on future production and procurement trends

During the afternoon of October 14, 2026, we hosted a conference call for domestic and foreign investors with Yaskawa Electric's Ayumi Hayashida, Director, Managing Executive Officer. We maintain our Buy rating. Production trends: ERP issues are behind, production recovered in September; servo motor monthly production at end-September was up just over 20% versus the 2Q average, with plans to reach 100% single-shift utilization by end-3Q and further ramp-up via two-shift operations from December. Order trends: no signs of a demand slowdown, driven by AI/data center demand, with servo and inverter orders expected to stay on an uptrend, though the weighting of "Indications" and unbilled "Forecasts" bears watching. Procurement trends: semiconductor procurement is the biggest challenge, with the company renegotiating lead times and volumes with suppliers based on one-to-two-year customer demand visibility. Pricing trends: full cost pass-through is assumed for products with secured procureme