NEC 2008 Annual Report Download - page 29

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which NEC ranks third* in terms of global market
share based on its highly reliable technological capa-
bilities, and on semiconductors for use in digital
consumer electronics, where the “EMMA” series
in the digital image processing field and other prod-
ucts enjoy a diverse range of applications.
As the next step, NEC is streamlining its manu-
facturing operations to enhance cost competitive-
ness. NEC decided to transfer development
functions to its Yamagata production site by the
end of fiscal 2009. In addition, NEC reorganized its
six domestic production subsidiaries in April 2008.
NEC plans to shorten the product development-to-
mass production period and reduce costs.
NEC has strong technological capabilities in the
field of display-driver ICs, being one of the world’s
top vendors. NEC now plans to use a dedicated
production process for display-driver ICs to reduce
manufacturing costs. In this way, NEC aims to
improve display-driver IC profitability by offering
products with advanced process technologies.
In fiscal 2008, NEC began shipments of the “M2”
chip, its new third-generation (3G) mobile commu-
nications platform, from fall 2007. With this step,
the development of the current platform for mobile
handset semiconductors has been completed.
Resulting in a sharp decrease in R&D expenses.
The “M2” chip is an outstanding IC that boasts 50%
less power consumption than NEC’s previous tech-
nologies, enabling manufacturing of even smaller
mobile handsets.
On the development front, resources are weigh-
ing even more heavily on this segment than before
because of the highly sophisticated technologies
needed to achieve high performance and low power
consumption when developing state-of-the-art
processes. In response, NEC has decided to jointly
develop next-generation 32nm (nanometer: one
nanometer is one billionth of a meter) system LSI
processes with Toshiba Corporation. Both partners
will share development costs to improve the effec-
tiveness of their R&D activities. The two companies
will continue to discuss possible joint manufacturing
operations for the 32 nm generation.
In the electronic components field, NEC will
streamline the battery business in order to expand
the lithium manganate battery business, while
strengthening its product portfolio by leveraging
NEC’s materials development capabilities.
* NEC boasts the third largest global market share in the global
automotive microprocessor market. (Based on research by NEC
Electronics Corporation)
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NEC has positioned the Electron Devices business
as a driver of sales and earnings growth for the NEC
group over the medium and long terms. In core
semiconductor operations, NEC will provide high-
quality, high-performance semiconductors to cus-
tomers by leveraging its high reliability and low
power consumption technologies, based on close
collaboration between development and manufac-
turing operations.
Going forward, NEC will strengthen group-wide
management and cultivate new markets by achieving
technological innovation by combining the group’s
advanced technologies in semiconductors and elec-
tronic component businesses with those of the IT/
Network Solutions business. In these ways, NEC will
strive to make the Electron Devices business a driving
force behind the NEC group’s overall growth.