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16 Fujitsu Limited
■ Electronic Devices ■ Operating Environment and Performance
There was strong demand for digital consumer electronics
products such as PDP and LCD televisions and DVD record-
ers in the first half of fiscal 2004. However, from the second
half, demand for these products began to stagnate and the
electronic components market deteriorated rapidly.
Amid these overall industry trends, although intensify-
ing price competition led to lower income from our PDP and
LCD products, higher sales of LSI devices for other digital
consumer electronics products and automotive applications,
and strong performance by electronic components subsidiar-
ies made positive contributions to our results. Accordingly,
Electronic Devices reported only a marginal decline of 0.1%
in net sales, to ¥733.8 billion ($6,859 million). On a continu-
ing operations basis, after excluding the impact of making our
compound semiconductor business and Flash memory manu-
facturing subsidiary equity-method affiliates, sales grew 4.6%
year on year. Although operating income was adversely im-
pacted by the deteriorating situation in PDPs and LCDs,
there was a significant increase in operating income from semi-
conductors thanks to higher income in the logic chip busi-
ness and improved earnings in the system memory business.
Consequently, the segment recorded an increase of ¥5.0 bil-
lion in operating income, to ¥32.5 billion ($305 million).
■ Initiatives in Fiscal 2004
During the fiscal year we launched a diverse stream of high
value-added devices. These included COT, ASIC and other
products built on our leading-edge 90nm semiconductor tech-
nology, FRAM*1 devices with world-leading 1Mbit memory,
and the world’s smallest mobile phone SAW duplexer
compatible with the North American PCS protocol.
FRAM devices with world-leading 1Mbit memoryASIC lineup
16 Fujitsu Limited