Pentax 2008 Annual Report Download - page 16

Offering new value in harsh market conditions
In the fiscal year under review, panel manufacturers slowed the
pace of investments in facilities, and the thriving panel market led
to a greater emphasis on mass production of existing models than
on new product development, which reduced the number of new
orders for photomasks and softened overall demand in the
market. Coupled with plunging prices for certain products, the
Company faced a year fraught with adversity.
Under such circumstances, Hoya worked to further cut costs
and implemented new technologies to provide products that aid
customers in streamlining and reducing costs in their production
processes. For example, the Company is working to expand sales
of its multi-tone mask, which can contribute to productivity
through a 15% to 20% physical reduction in the panel
manufacturing process. We have also applied high-level
techniques used in photomasks for semiconductors, which we
have been involved in for many years, to commence technical
services that simulate customers’ production processes with the
aim of improving the process environment. As a result, our
customers have reevaluated our advanced technical abilities and
service quality, which we believe has succeeded in enhancing
customer trust in Hoya’s frontline technology capabilities.
From autumn 2006, Hoya commenced in-house production of
glass substrates (mask blanks) for LCD photomasks and
reorganized its production system to incorporate all manufacturing
stages from substrate to photomask. These changes have
bolstered cost competitiveness by raising photomask quality and
ensuring substrate supply. In addition, the tripolar production
system the Company has been promoting since 2005, with hubs
in Japan, Taiwan and South Korea, enables rapid response to
customers in each region. There has been a growing tendency in
recent years for panel manufacturers to keep a cautious eye on
final demand when placing orders for photomasks. Hoya and
other photomask producers are therefore being asked to deliver
quality customized products in short time frames. In combination
with in-house production of mask blanks, this tripolar system
allows for agile response to such customer needs.
We are extending our market lead through
technological innovation and detailed accommodation
of customer needs
As lower prices transform LCD televisions into consumer goods
readily purchasable by the general public in a process known as
“commoditization,” the global market is projected to continue
expanding in the year ahead, boosted by the Olympic Games and
the spread of digital broadcasting networks. In the year ahead, we
expect panel manufacturers to ramp up capital investment and
establish new production lines in response to such demand, and
the supply and demand situation in the photomask market is
predicted to turn favorable.
Hoya will capitalize on these opportunities to elevate its
presence in the market by continuing its technological innovation
and responding carefully to the diverse needs of each customer.
In the brief space of 10 years, the LCD panel market has rushed
through a growth process that took the semiconductor market 30
years to complete, and there is still considered to be substantial
room for refinement of production techniques. The Company
aims to offer ground-breaking products to support the sustained
growth of LCD panels by applying the technical capabilities we
have accumulated in semiconductor photomasks to LCD
photomasks.
Information Technology
Significant Actions Taken and Results Achieved in
the Fiscal Year under Review
Policies and Forecasts for the Year Ahead
Highlights
Pursuing excellence in quality, delivery times and
costs to nimbly respond to customer needs
Large-sized LCD photomask (1,220 mm × 1,400 mm) used for eighth-generation LCD panels
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