Pentax 2010 Annual Report Download - page 12

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Photomasks for
semiconductor production
Business Overview
Electro-Optics Division
Photomasks for Semiconductor Production
Fiscal 2010 Business Overview and Results
The structure of the semiconductor market has changed
significantly since the onset of the financial crisis in 2008 as a
result of restraint in R&D investment, increased corporate
restructuring, and other factors. With emerging economies,
primarily China, now playing a leading role in the market, driving
global demand, even greater pricing pressures are evident.
Reflecting these difficult operating conditions, Hoya's performance
in the first half of fiscal 2010 was sluggish. In the second half, various semiconductor
manufacturers that had exercised restrain because of the financial crisis resumed development
investment, leading to gradual signs of a recovery in photomask demand. Nevertheless, full-
year demand was down year on year, resulting in lower sales and profits.
Hoya worked to develop business, focusing on advanced domains, and to strengthen
competitiveness through rigorous development of advanced technologies. In addition to the
cutting-edge lithography equipment released in fiscal 2009, the Company introduced inspection
equipment for advanced 22nm node products, stealing a march on competitors. This
achievement enabled Hoya to capture demand for photomasks for development after
semiconductor manufacturers resumed R&D investment.
Outlook for Fiscal 2011
In semiconductors, companies are aiming to improve chip performance through finer design
rules and reduce costs by boosting production capacity. However, the investment cost in
advanced domains is increasing year by year, while the number of companies engaging in
advanced development is on the decline as more and more companies seek to reduce costs by
using general-purpose parts to produce devices. Against this backdrop, Hoya's photomask
business intends to expend every effort to supply customers with high-quality photomasks
needed to support advanced semiconductor development, while at the same time focus on
enhancing cost-competitiveness.
HOYA Annual Report 2010
11