Epson 2007 Annual Report Download - page 11

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9
Annual Report 2007
In the fiscal year ended March 31, 2007, Epson
closely examined the key issues facing the
display business, considered the future
direction of each of its LCD technologies, and
set about implementing structural reforms.
■Future Direction of Each Technology
All color STN operations will be moved offshore,
and MD-TFD operations, in which Epson is
reaching the limits of its scope to cut costs, will be
terminated. Going forward, Epson will concentrate
its resources on two technologies, amorphous
silicon TFT and LTPS TFT, for which demand is
expected to rise.
Structural Reforms in the Display Business
■Operational Restructuring
1. Improving development, design, manufacturing,
and other capabilities
In response to customer demand for improved
quality, costs, and delivery times, Epson is
improving its development, design, and
marketing capabilities, leveraging the advanced
manufacturing technologies employed in its
MD-TFD business, and continuously enhancing
its manufacturing efficiency.
2. Reviewing manufacturing systems
Small- and medium-sized LCDs are produced
in Japan (Nagano, Gifu, and Tottori prefectures),
China, and the Philippines. Following a review
of the direction that each technology is taking,
Epson will determine the best possible sites for
production based on scale of operations, and
reorganize and integrate production lines
accordingly.
3. Transferring personnel to growth areas
within the Group
Following the termination of the MD-TFD
business, Epson will concentrate its resources
on amorphous silicon TFT and LTPS TFT
technologies and transfer personnel to
promising futureareas of growth within the
Epson Group.
4. Standardizing platforms and promoting
the use of common components
Moving forward, to further lower parts procurement
costs, Epson will standardize platforms and
components and reduce variable costs.