Fujitsu 2009 Annual Report Download - page 38

0
50
150
200
100
0
3
6
12
9
166.2
6.1
39.6
6.3
5.3
117.3
2007 2008 2009
–80
0
20
30
40
10
–15
0
2
8
4
6
29.0
3.7
–71.9
–12.2
2.3
2.5
4.2 18.2
19.0
29.5
2005 2006 2007 2008 2009
0
200
1,000
800
600
400
794.7
468.2
326.5
587.6796.7762.6707.5
2005 2006 2007 2008 2009
197.3
460.1
247.4
473.5
289.1
508.8
287.9
390.3
(Billions of yen) (Billions of yen) (%) (Billions of yen) (%)
Operating income (left scale)
Operating income margin (right scale)
Capital expenditure (left scale)
Ratio of R&D expenditure to net sales (right scale)
* Including intersegment sales
(Years ended March 31) (Years ended March 31) (Years ended March 31)
Sub-segment Sales* Operating Income/
Operating Income Margin
Capital Expenditure, Ratio of
R&D Expenditure to Net Sales
[Fiscal 2008 Business Results]
Market Trends
The value of the global semiconductor market declined by 2.8%*1
to US$248.6 billion in 2008, falling sharply from growth of 3.6%
recorded for 2007.
Up until September 2008, market growth was on track to sur-
pass that of the previous year. However, hard hit by global market
deterioration from October, demand for semiconductors fell rap-
idly across virtually all sectors, most notably for products used in
digital home appliances, mobile phones, automobiles, and PCs.
Ultimately, market growth declined by 21.9% year on year for the
period from October to December. The drop in market value
accelerated further going into 2009, falling significantly by 29.8%
year on year from January to March.
Operational Review
Sales from the Device Solutions segment decreased 26.2% year
on year to ¥587.6 billion. Sales in Japan of both mature technol-
ogy logic products and advanced technology logic products
based on 65nm and 90nm process technology were substantially
lower. This downturn was the result of inventory adjustments in
digital home appliances, automobiles, and across a wide range of
other sectors, due to adverse market conditions from the second
quarter. Sales of Flash memory for mobile phones and electronic
components also were lower because of poor market conditions.
Outside Japan, sales declined 21.7%, or 13% excluding currency
exchange rate effects.
The segment posted an operating loss of ¥71.9 billion, drop-
ping ¥90.2 billion from the previous fiscal year. The key reasons for
this decline were lower sales from the LSI Devices sub-segment,
diminished capacity utilization rates for our production lines from
the third quarter, weak demand for electronic components, and
currency exchange rate effects.
[Outlook for Fiscal 2009]
Market Trends
The global semiconductor market in 2009 is projected to decline
significantly by 21.6%*1 year on year to US$194.8 billion due to the
expected impact of serious economic deterioration in the wake of
the financial crisis. By region, the US, Europe, Japan, and Asia-
Pacific semiconductor markets are expected to decrease by 14.7%,
25.9%, 28.5%, and 19.8%, respectively*1.
In terms of products, the markets for all products appear likely
to contract significantly. The memory market (including DRAM
and Flash memory) is expected to decline by 20.3% in fiscal 2009,
and sales of MOS logic products and MOS microcontrollers are
expected to fall by 17.2% and 24.0%, respectively*1. Although a
modest recovery is anticipated from March 2009, conditions are
expected to remain extremely challenging for the semiconductor
market in 2009.
Looking ahead, the semiconductor market shows signs of
recovering from 2010, when the market is projected to grow 7.3%
to US$209.0 billion, followed by further growth of 8.9% to US$227.5
billion in 2011. Overall, the projected average annual growth rate
LSI Devices
Electronic Components, Others
Device Solutions
Operational Review and Outlook
036 ANNUAL REPORT 2009
FUJITSU LIMITED