Fujitsu 1998 Annual Report Download - page 9

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Crafting leading-edge IT solutions for customers around the world
7
Question 4What is the outlook for semicon-
ductors, especially the difficult DRAM business?
Fujitsus electronic devices group develops compo-
nents essential for the development of competitive
computer and communications products. For this
reason, we are committed to staying at the van-
guard of technological progress. We intend to pur-
sue growth in existing businesses, mainly logic
devices, and will place particular emphasis on sys-
tem LSI for digital AV applications and for the IT
industry, including Fujitsu itself. We have no
plans for withdrawing from the DRAM field. In-
deed, leading-edge DRAM development is essen-
tial to support progress in system LSI, which
combines RAM and logic on a single chip. On the
other hand, the current oversupply situation dic-
tates that DRAM mass production be scaled back.
In its place, we will increase production of flash
memoriesan area where Fujitsu, combined with
joint venture partner Advanced Micro Devices,
Inc., already holds the worlds top market share.
Mixed production at our DRAM factories
will continue but will be accompanied by struc-
tural reforms, such as a shift to logic devices and
flash memories. These steps are intended to im-
prove the profitability of the semiconductor
group as a whole.
Question 5What is Fujitsus overall strategy
for the future?
Speed is essential. We need to anticipate changes
quickly and make decisions faster. To achieve this
goal, we have set forth three major objectives: gen-
erate results from global strategies as soon as pos-
sible; become number one in customer satisfaction;
and use networks as a foundation for achieving
high growth and earnings.
We also have important goals for our financial
position. First and foremost, we are committed to
increasing profits for our shareholders. To do so,
we will strive to reduce interest-bearing liabilities
and to boost return on investment by becoming
more selective in making new investments, as well
as concentrating investment in promising areas. In
essence, Fujitsu aims to be an organization that
can anticipate and respond to global trends while
remaining focused on our customersrequire-
ments. We believe this strategy will allow us to
grow and prosper.