Epson 2007 Annual Report Download - page 26

24 Seiko Epson Corporation
Semiconductor Business
In addition to the semiconductor business structural
reforms announced in March 2006, in the period under
review, Epson completed the transfer of the business
assets of subsidiary Yasu Semiconductor Corporation to
the Omron Group. As part of its plan to switch to a
business structure with stable plant utilization, the
Company concluded a strategic cooperative business
agreement with Maxim Integrated Products, Inc.
Epson’s semiconductor business is now in the
process of transferring to a new business structure
from its traditional focus on display systems for mobile
phones. In addition to taking advantage of its strengths
in low-leak and eco-power algorithms, the Company
will base its business around analog/digital ICs that
utilize its portfolio of intellectual property in low-power-
consumption analog technology.
Going forward, Epson’s semiconductor business
intends to secure sales by dedicating itself to creating
products that closely match customer needs and to
generate steady profits by providing technical support
to other Epson businesses.
Quartz Device Business
Quartz devices are used for the clock functions of a
wide range of electronic equipment for both consumer
and industrial use. In October 2005, Epson merged its
Epson Toyocom’s Business Strategy
Becoming the World Leader in Quartz
We will create world-leading crystal devices by cultivating and combining our core technologies of
timing devices, optical devices, and sensing devices.
3D Strategy
Timing Devices
Optical Devices
Sensing Devices
Modularization
Higher added value
(Vertical development)
Timing Devices
These electrical devices keep the correct time and provide the critical
timing (or “clock”) necessary for high-speed data transmission.
(For example, crystal units, crystal oscillators)
Optical Devices
These devices are used primarily as optical filters for image correction in
digital cameras and in optical pickups in DVD drives.
(For example, optical low-pass filters)
Sensing Devices
These devices convert quantifiable physical phenomenon
(angular velocity, temperature, pressure, etc.) into electrical signals.
(For example, gyro-sensors, heat sensors)
Higher added value (Horizontal development)
quartz device business with Toyo Communication
Equipment Co., Ltd., to form Epson Toyocom Corporation.
Epson Toyocom’s plan is to offer a wide range of
product solutions based on its 3D strategy. This will be
achieved by expanding sales of its three core product
lines—timing devices that provide clock functions in
electronic equipment, sensing devices that take
advantage of the characteristics of quartz, and optical
devices—and combining these products to offer
comprehensive solutions. Utilizing its proprietary Quartz
Micro Electro Mechanical Systems (QMEMS*) technology,
Epson Toyocom also seeks to become a world leader
amid increasing demand for electronic devices that are
ever more compact and accurate.
In August 2006, Epson Toyocom expanded facilities
at its Miyazaki Plant to answer increasing demand for
clock functions for mobile communications equipment
and other products. New plants will be added in
Thailand and in Wuxi, China, in the fiscal year ending
March 31, 2008.
* QMEMS is a combination of “Quartz,” a crystalline material with
such characteristics as high stability and high precision, and
“MEMS” (Micro Electro Mechanical Systems). QMEMS quartz
devices are created using quartz material instead of the
semiconductors usually used in MEMS. Epson Toyocom
performs precision microfabrication on the quartz material to
offer high performance in a compact package.