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26 Fujitsu Limited
■ Business Overview
The Device Solutions business segment is comprised of two
sub-segments: LSI Devices, centered on logic LSI devices and
including system memory products; and Electronic Compo-
nents, Others, including semiconductor packages, SAW
devices and a range of other electronic components.
■ Operating Environment and Performance
In the first quarter of fiscal 2005, the logic LSI device market
experienced a downturn as manufacturers, particularly in the
digital consumer electronics and mobile phone sectors, con-
tinued to reduce inventories. From July onwards, however,
demand expanded, centered on digital AV products, mobile
phones and automotive applications. Prices for logic LSI
devices continued to decline during the year, in parallel with
falling prices for finished digital AV products and mobile
phones. There was a similar picture in the system memory
products market, with shipments increasing, primarily for
digital AV and mobile phone applications, but prices continu-
ing to decline.
In this business climate, Device Solutions posted sales of
¥707.5 billion (US$5,996 million), down 11.0% compared to
a year earlier. However, excluding the impact of the transfer
of our flat panel display businesses, sales on a continuing
operations basis increased by 0.5%. In LSI Devices, sales of
system memory products decreased due to declining market
prices, but the market for logic LSI devices recovered in the
latter half of the fiscal year, especially for devices used in mobile
phones and digital AV products. The start of volume produc-
tion of advanced logic LSI devices also contributed to sales.
The combination of these factors supported a slight overall
rise in sales of LSI devices, mostly from overseas sales, com-
pared to fiscal 2004.
Operating income totaled ¥33.3 billion (US$282 million),
an increase of ¥0.7 billion compared to the previous fiscal year.
Although operating income in the LSI Devices sub-segment
declined due to a weaker market during the first half of the
fiscal year, as well as the impact of expenses relating to the
start-up of the 300mm wafer facility at our Mie Plant, the Elec-
tronic Components, Others sub-segment continued to post
strong results, and losses associated with the flat panel dis-
247
468 326
460
376
707
794
804
427
LSI Devices
Electronic Components, Others
2004
2005
2006
■ Segment Sales* by Main Product Mie Plant for Advanced Logic LSI Production
Onstream since April 2005, the Mie Plant produces logic LSI devices on 300mm wafers.
The plant will boast world-class production capacity in advanced logic LSI devices when a
second fab scheduled for construction at the site becomes operational.
2006/3
(Actual)
2006/9
(Plan)
2007/3
(Plan)
2007/9
(Plan)
2008/3
(Plan)
4
8
15
20
25
■ Increasing 300mm Wafer
Production Capacity
(90nm/65nm process technology)
(thousands of wafers per month)
Device Solutions
(Billions of Yen)
Years ended March 31
* Including intersegment sales