NEC 2008 Annual Report Download - page 28

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



 




(Including Intersegment Sales)
(Billion ¥)



In fiscal 2008, the year ended March 31, 2008, sales
in the Electron Devices business were ¥830.9 bil-
lion, down 4% year on year. In the core semicon-
ductor area, sales of semiconductors for consumer
electronics and automotive and industrial equip-
ment rose, but were more than offset by lower
sales of semiconductors for communication
devices and PC peripherals. As a result, overall
semiconductor sales were down by 1% from the
previous fiscal year. In the electronic components
and others business sales decreased by 15% due
to inventory adjustments at major customers and
other factors. However, the Electron Devices busi-
ness restored operating profitability to ¥7.4 billion
in fiscal 2008, compared with an operating loss of
¥23.0 billion in fiscal 2007. In addition to an improve-
ment in the sales cost ratio, factors behind this
change included measures to cut fixed costs includ-
ing improved R&D efficiency.

NEC is implementing measures to reform the
semiconductor area to boost competitiveness.
First, NEC sought to generate earnings by slashing
R&D expenses by focusing business resources on
developing highly competitive products in global
markets. NEC consolidated development projects,
reallocated employees and bolstered production
capabilities. NEC also concentrated business
resources on semiconductors for use in automotive
equipment, mainly automotive microcontrollers, for
300
600
900
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