Pentax 2009 Annual Report Download - page 15

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Future Strategies
One of the trends in the photomask market is the continued decline
in overall demand resulting from customers reducing the types of
products used. In turn, this trend arises from a movement towards
concentrating manufacturing in fabs (chip manufacturing specialists)
and corporate reorganizations in the semiconductor industry. In
recognition of these trends, Hoya is focusing more than ever before
on maintaining close relationships with customers. The Company
sees its highest priority issue as providing customers with optimum
solutions as their partner for advanced technology development.
Going forward, Hoya intends to stay ahead of competitors with
the latest next-generation lithography equipment, introduced in
the fiscal year under review, working to further strengthen its com-
petitiveness. In addition, the Company is utilizing correction tech-
nology for writing processes and simulation technology to
duplicate semiconductor exposure processes to provide its own
original high-value-added solutions.
PHOTOMASKS FOR LCD PANEL PRODUCTION
Fiscal 2009 Business Overview and Results
Hoya manufactures LCD photomasks, which are the master plates
used in the manufacture of LCD panels for flat-panel televisions and
computer monitors.
Hoya has leveraged several advantages in winning top share of
the global market for LCD photomasks. It supplies high-value-added
products that utilize technology accumulated in the development of
photomasks for semiconductors. It also has a tripolar production
system featuring hubs in Japan, Taiwan, and South Korea that
enables rapid response to customer needs.
In the fiscal year under review, LCD panel manufacturers contin-
ued to actively increase capital investment in anticipation of a surge
in demand related to the Beijing Olympics. Accordingly, Hoya fared
well in the first half. However, in the second half, lower demand than
expected from the Beijing Olympics and lagging consumption
because of the economic downturn following the Lehman Brothers
shock resulted in LCD panel inventory levels being substantially
higher than demand. Consequently, the Company experienced a
sharp decline in demand beginning in the third quarter along with
continued strong downward pressure on prices. Overall sales fell
compared with the previous fiscal year.
Future Strategies
In the past, LCD panel manufacturers have mainly relied on increas-
ing the size of the glass used as a substrate to improve their pro-
ductivity. Today the new challenge is to pursue further gains in
productivity with an eye to achieving cost reductions within the
manufacturing process. Within that trend, Hoya’s multi-tone mask*2
is a breakthrough product that promises to lower manufacturing
costs through its significant contributions to reducing the number
of processes in LCD manufacturers’ production lines and increasing
yields. In the fiscal year under review, the Company implemented
improvements to the defect rates and degree of precision of multi-
tone masks, focusing on differentiating its products in the market.
Hoya also began such activities as utilizing inspection technology to
raise the quality guarantee level for its LCD photomasks. Moving
forward, the Company intends to take the initiative in the market by
developing and proposing technologies that will be valued by LCD
panel manufacturers seeking to improve productivity.
8th generation photomasks
(1,220mm X 1,400mm)
An 8th generation glass sub-
strate can yield screens for six
50-inch LCD TV panels.
*1 Phase shift mask blanks
These mask blanks have a semi-transparent film coating
between the glass substrate and a metallic film layer that
enables the printing of smaller circuits. High-value-added
products that increase the functionality of devices and
enables greater miniaturization, phase shift mask blanks are
contributing to the greater profitability of the business.
*2 Multi-tone masks
Multi-tone masks can reduce the number of processes used
in LCD panel production from five to four. Consequently,
they contribute to reducing the manufacturing costs of LCD
panel manufacturers and increasing their productivity.
13
HOYA Annual Report 2009