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9
Nikon Corporation Annual Report 2010
Review of the Fiscal Year Ended
March 2010
During the fi scal year ended March 2010,
although signs of recovery started to become
visible in the second half, unit sales of IC and
LCD steppers and scanners dropped sharply,
as both of these markets contracted by nearly
50% during the economic slump caused by
the fi nancial crisis. As a result, segment sales
fell 31.7% from the previous fi scal year to
¥150,101 million. Owing to reduced sales and
additional write-down of inventories, the
segment posted an operating loss of ¥58,557
million compared with operating income of
¥8,041 million in the previous fi scal year.
In IC steppers and scanners, Nikon was forced
to record a large additional write-down of
inventories owing to a sharp market contrac-
tion and an earlier-than-expected shift in
demand to high-performance equipment. As
the market turned toward recovery in the
second half, we began scheduled shipments
in the third quarter of cutting-edge ArF
immersion scanners for double patterning
that will allow for mass production of
semiconductors at 32 nm and beyond.
In LCD steppers and scanners, efforts were
made to expand sales of the FX-101S scan-
ner, which is compatible with 10th genera-
tion large glass plates, and of steppers
suitable for the manufacture of the small to
medium-sized high-precision liquid crystal
displays used in cell phones and automotive
electronic devices. In the Chinese market, we
received a major order for LCD scanners for 8th
generation glass plates.
The Precision Equipment Company also
actively pursued structural reforms and
measures to reinforce cost-competitiveness
throughout the business, reorganized and
consolidated four domestic manufacturing
subsidiaries into two, and implemented
rationalization measures at service subsidiar-
ies and overseas marketing operations.
IC Steppers and Scanners
Raising Our Share in State-of-the-Art Fields
with Cutting-Edge Immersion Scanners
While the demand for semiconductor devices
is expected to remain fi rm, customers are
seeking further device shrinkage of semicon-
ductors and higher throughput. To respond to
these demands, Nikon devoted its efforts to
(%)
2008 2009 2010
0
100
80
60
40
20
IC Steppers and Scanners,
Sales Unit Ratio by Technology
Years ended March 31
10
26
242
44
3
11
16
23
33
40
10
40
ArF
immersion
ArF
KrF
i-line
EUVL
KAZUO USHIDA
Director, Member of the Board and
Senior Executive Offi cer
President of Precision Equipment Company