Pentax 2002 Annual Report Download - page 8

For the fiscal year under review, consolidated net sales in the Information Technology field decreased. Sales
of photomasks for liquid crystal displays (LCDs) rose, but sales of other products, such as mask blanks for
semiconductors and optical products declined as a result of the downturn in the global IT sector.
Mask Blanks, Photomasks for Semiconductors and LCD Photomasks
Sales of mask blanks in Europe and North America were affected by poor conditions in the semiconduc-
tor market and by our customers’ inventory adjustments. In the Korean and Taiwanese markets, sales of
high-precision products for manufacturing phase shift masks and other uses were solid, but sales of
mask blanks declined in comparison to the previous fiscal year. Sales of photomasks also declined as a
result of reduced production by semiconductor manufacturers and persistent demand from customers
for price reductions in the second quarter.
Sales of LCD photomasks, however, showed growth as a result of the shift of computer dis-
plays to LCDs and amid domestic competition to develop small- and medium-sized LCDs for use in cel-
lular phones and PDAs. Korean and Taiwanese firms are the primary producers of panels for LCDs,
and are increasing mask sizes. The largest masks are now larger than 1 meter long, and require a high
level of technological expertise to produce owing to the high resolution demanded. Hoya is particularly
competent in the production of large-scale, high-resolution products, and commands a large share of
this market. We will be expanding our sales in this area.
In February 2002, the Company expended some capital resources and commenced shipments
of high-end mask blanks, such as blanks for next-generation, phase shift masks, produced at its
Nagasaka Plant in Yamanashi Prefecture.
In photomasks, Hoya primarily targets business with Japanese semiconductor manufacturers,
and the Company has installed state-of-the-art production equipment in its Kumamoto Plant to serve
the many semiconductor manufacturers in the Kyushu area of Japan. This is an example of energizing
our operations in accordance with one of our key factors, region.
Hoya will increase its competitiveness by accelerating lead time, and will expand its production
capacity via the installation of more cutting-edge production equipment in the Kumamoto Plant.
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Information Technology
Glass Disks for HDDs
Computer manufacturers reduced production through the second quarter of the fiscal year. This neces-
sarily had an effect on sales of glass disks for use in computers, which caused a delay in the deployment
of manufacturing facilities. This, in turn, brought a decline in sales of media products, such as glass sub-
strates with magnetic film coating. As a result, total sales of glass disks declined in comparison with the
previous fiscal year, though the operating ratio was high at plants producing glass substrates, primarily
for notebook computers and desktop PCs.
Operational Review part 1