Oki 2002 Annual Report Download - page 12

Oki Electric Industry Co., Ltd. Annual Report 200210
• Silicon Solutions Company
Silicon Solutions Company (SiSC) is endeavoring to minimize the influence of drastic changes
in the semiconductor market and raise customer allegiance to ensure stable profits. SiSC is also
seeking to expand sales of our mainstay—system LSI—and of system memory and application-
specific dynamic random access memory (ASDRAM), as well as increasing the percentage of
new products. In production, we are taking steps to enable flexible responses to market changes
as much as possible through limited investments. We are also seeking to use outside production
facilities to ensure manufacturing capacity and transforming fixed costs into variable costs.
To respond to sudden market changes, SiSC shifted from standard DRAM for PCs to the logic
and system LSI fields. Although we focused on the telecommunications network market, such as
mobile phones, and the memory market for consumer systems, such as mobile phone units and
PC peripherals, market changes were even more harsh than expected and sales dropped. In LSI
for the Bluetooth™ wireless technology for short-distance networks, orders increased following
Oki becoming the first Japanese company to receive certification for the new commercially avail-
able Bluetooth™ Version 1.1 specification. Several potential new products were launched on the
market, such as a telecommunications LSI and a sound generator LSI for mobile phones. SiSC
will continue to concentrate on the logic and system LSI fields, and, in particular, on expanding
the sales of telecommunications LSI. We are aiming to secure stable capacity for the supply
of semiconductors in the future by tightening our relationship with
Grace Semiconductor Manufacturing Corporation, which has received
our technical licenses. The manufacturing facilities of Grace
Semiconductor Manufacturing are currently being built
in Shanghai, PRC. Oki has also jointly developed a
0.22µm complementary metal-oxide semiconductor
(CMOS) process with UMC Japan Inc.
In environmental conservation, Miyagi Oki Electric
Co., Ltd., followed Miyazaki Oki Electric Co., Ltd., in
achieving zero emissions, and Oki also achieved zero
hazardous waste at its major domestic semiconductor
manufacturing sites.
Electronic Devices
We also received orders for a large-scale VOD system for the archives of the Japan Broadcast-
ing Corporation (NHK), a commercially available video distribution system for Plala Networks
Inc. (an NTT Group company).
Katsuhiko Sano
Company President
Oki was the first company to mass-produce LSI using the fully
depleted 0.35µm silicon-on-insulator (SOI) technology commer-
cially. Power consumption has been reduced to 25% of its previ-
ous level, making possible, in combination with solar batteries,
the development of watches not requiring battery replacement.