JVC 2003 Annual Report Download - page 26

Victor Company of Japan, Limited
24 Annual Report 2003
Components & Devices
HDD Motors
Ultra-high precision bearings and assembly
technology result in low noise, long-life, shock
resistant HDDs
M-VIL High-density Build-up Multilayer PWBs
JVC’s advanced manufacturing techniques have not
only helped to increase the density and reduce the
size of volume production PWBs, they have also led
to enhancements in semiconductor and component
mounting quality
Deflection Yokes
JVC’s deflection yokes are ideal for high-resolution
CRTs such as PC monitors, thanks to their high-
speed scanning capabilities and environmentally
safe design
Tetsuo Kashiwagi
President, Components & Device Company
The development, manufacture and sale of electronic components and devices accounts for 5% of JVC’s total sales. The
segment reported another loss in fiscal 2003 as the extended downturn in the IT industry and the cost of restructuring
measures to build a profitable operating base held back performance. With the benefits of these actions now showing
through, this segment is on the path back to profitability.
paring back fixed costs to make this
segment more competitive. Although
LCD technology is rapidly becoming the
de facto standard in the PC monitor
market, demand for high-resolution
CRTs is certain to remain for some
time. By rigorously controlling ex-
penses, we are determined to remain a
leading supplier of deflection yokes as
market contraction leaves only a few
surviving manufacturers. We expect
substantial growth in high-density
build-up multilayer printed wiring
boards. Originally used mainly in mo-
bile phones, these boards are now
found in digital still cameras (DSCs)
and digital video cameras (DVCs). We
are confident that through the above
steps, we have established a profit
structure that will benefit directly from
closing unprofitable operations and in-
vesting in key device categories to be-
come ultimately more cost competitive.
Investment in Next-Generation Key
Devices
Opto-electronics components for Blu-
ray Disc equipment is an attractive
new field for JVC. With exclusive tech-
nology for optical pickups, we are in
an excellent position to develop “Only
Specializing in the Development and
Manufacture of Key Devices
Until recently, this segment mainly
manufactured products for external
customers. Although these activities
remain important, from now on the
segment will almost exclusively sup-
ply key devices needed to create dis-
tinctive, value-added JVC products.
JVC will sell these devices to other
companies when they become ac-
cepted as the industry standard. We
decided to cease manufacturing and
selling components where we don’t
have a competitive edge. This included
withdrawing from the magnetic head
and crystal quartz device businesses.
What remains is a portfolio of profit-
able and competitive products that
includes deflection yokes for high-
resolution computer monitors, high-
density build-up multilayer printed
wiring boards, motors for optical and
hard disk drives, and optical pickups.
Poised for a Return to Profitability in
the Current Fiscal Year
We are currently making our key device
business more cost-competitive. In de-
flection yokes, for instance, we are re-
aligning manufacturing bases and
One” products in this field. Sales to
external customers could become a
major earnings source going forward.
Another new technology poised to cre-
ate future “Only One” products is the
fluid dynamic bearings of our HDD mo-
tors, produced using an exclusive and
trusted JVC technique. We are now
investing in additional production ca-
pacity to begin full-scale motor pro-
duction in the following fiscal year. At
this early stage, investing in these key
devices has yielded no immediate re-
turns. We are confident though that
this investment will translate into sub-
stantial earnings as the segment’s key
devices play a growing role in JVC’s
new products.