Epson 2006 Annual Report Download - page 32

Seiko Epson Annual Report 2006
30
Management Topics
Commencement of
Operations at Epson
Toyocom Corporation
Epson Toyocom Corporation (Epson
Toyocom), a new company integrating
the Company’s quartz device business
and Toyo Communication Equipment
Co., Ltd. (Toyo), commenced full-scale
operations on October 1, 2005.
Quartz devices serve an important
role as key components for wireless
communication equipment, PC clock
functions and other digital IT equipment.
Integrating Epson’s strengths in timing
devices for the consumer market, an
offshoot of its watch business, and
Toyo’s core competencies in devices for
industrial applications, has helped the
companies create complementary
product lineups and production facilities.
The integration has leveraged the respec-
tive strengths of the two companies in
areas such as volume production,
microfabrication, and high-precision
Toyocom’s core competencies in optical
devices are optical image correction
filters for digital cameras, and basic com-
ponents for optical pickups found in DVD
recorders and other equipment. Bringing
these optical device operations together
has now made it possible to share more
efficiently markets, technologies, devel-
opment resources and other assets
held by both companies.
In implementing its 3D Strategy going
forward, Epson Toyocom will push for the
horizontal development of its timing,
sensing and optical device operations,
along with the aggressive vertical
development of increasingly sophisti-
cated product propositions. In bringing
proposals for more efficient products to
the global marketplace, Epson Toyocom
is aiming to become the world leader in
quartz devices.
fabrication technology to bolster overall
technical prowess. Meanwhile, the ben-
efits of faster product development have
already led to the announcement of prod-
ucts that capitalize on synergies.
Following close on the heels of the
quartz device business integration,
Epson integrated its optical device
operations with those of Epson Toyocom
on April 1, 2006. Optical technology has
seen growing demand for greater
precision, driven by the push for shorter
wavelengths and higher speeds, as well
as the spread of broadband. Many
believe this trend is ushering in an era
where market competitiveness will be
largely determined by stronger technology
development capabilities. Epson’s optical
device business has strengths in optical
components for 3LCD projectors, in
curved surface treatment technology
honed in the manufacture of plastic cor-
rective lenses, and in other sophisticated
technological capabilities. Among Epson
Epson Toyocom Business Strategy
3D Strategy
We will create world-leading crystal devices by cultivating and combining our core technologies of
timing devices (TD), optical devices (OD) and sensing devices (SD).
Modularization
Timing Devices (TD)
Optical Devices (OD)
Sensing Devices (SD)
Timing Devices
These electrical devices keep the correct time and provide the critical
timing (or “clock”) necessary for high-speed data transmission.
(Example, Quartz crystal units, oscillators)
Optical Devices
These devices are used primarily as optical filters for image correction in
digital cameras and in optical pickups in DVD drives.
(Example, Optical low pass filters)
Sensing Devices
These devices convert quantifiable physical phenomenon (example,
angular velocity, temperature, pressure) into electrical signals.
(Example, Gyro-sensors, heat sensors)
Higher added value (Vertical development)
Higher added value
(Horizontal development)
Becoming the World Leader in Quartz Devices