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14
LCD Scanner
FX-67S
REVIEW OF OPERATIONS: PRECISION EQUIPMENT COMPANY
institution Global 450 Consortium. We plan to begin
shipments of this prototype at the start of calendar
2015, and to start shipments of mass-production
models in calendar 2017, about a year ahead of the
competition. By drawing on this advantage, we hope
to quickly regain our position as the company with
the top market share.
Tapping Large-screen Television Investment
Recovery to Boost LCD Scanner Sales
In the LCD scanner market, we anticipate continued
brisk investment for small to medium-sized high-
definition panels. In the second half of calendar 2013,
meanwhile, we expect to see signs that investment
in large-screen televisions is recovering. For
the market as a whole, we foresee sales in 2013
increasing to around 80 units, compared to 66 in
2012. Then, for the fiscal year ending March 2014,
we expect increases in Nikon's sales of 5th- and
6th-generation systems for small to medium-sized
high-definition panels, as well as systems in the 7th
generation and beyond for large-screen televisions.
In addition, we expect investment to accelerate
in the first half of 2014, to cope with an anticipated
shortfall in production capacity for large-screen
television panels in the second half of calendar 2014.
Nikon’s LCD scanners employ a unique multi-
lens system comprising an array of high-precision
lenses for exposure of a broad area, providing
optimal performance to efficiently manufacture
large, high-definition panels. This system can
be flexibly adapted to different plate sizes, and is
incorporated in systems for small to medium-
sized high definition panels, demonstrating its
exceptional performance.
Much interest has been generated lately in
creating high-value-added, next-generation, high-
definition televisions with 4K2K or 8K4K displays.
We expect that, were a market for these products
to be established, it would be to Nikon’s advantage,
considering our technical strengths in the field.
Thus, we are seeking to increase our current 80%
market share.
Return to the Basics of Manufacturing;
Strengthen Product, Price Competitiveness
We foresee continued growth in the market for IC
and LCD panels, as the user base expands to reflect
falling prices. With sharp shifts between boom
and bust characterizing this market, the Precision
Equipment Company is responding to falling prices
and market fluctuations by lowering its break-
even point, and devising a business structure
able to generate earnings even as the market
contracts. We thus must take steps to prioritize cost
reductions and shorten production lead time, while
also bearing in mind the importance of enhancing
our product innovativeness.
The fiscal year ending March 2014 will be when,
amid a harsh operating environment, we sow the
seeds to establish our revised business structure.
We plan to return to manufacturing basics, enhance
product and price competitiveness, and strengthen
our business structure so that, in time, our efforts
might bear fruit.