Oki 2005 Annual Report Download - page 14

Market Trends and Performance
Despite weakening prices in the second half of the year,
performance benefited from strong demand for P2ROMs
Product Segment
Growth rate in the world semiconductor market was strong in
the first half of the year ended March 2005, but slowed in the
second half. The Oki Group recorded strong first-half shipments
of PHS*1 base band LSIs and sound generator LSIs. However,
demand slowed in the second half of the year with mobile phone
inventory adjustments in China. Demand for driver LSIs for LCD
televisions and PC monitors increased with the start-up of new
plants by panel manufacturers, but sales were affected by a
downward trend in prices in the second half of the year. In
contrast, demand for P2ROMs for the amusement equipment
market was stronger than predicted, and this helped to underpin
overall performance.
Though the market adjustment phase is expected to continue
in the first half of the year ending March 2006, the supply-demand
balance should improve in the second half. Demand for driver
LSIs for thin LCD televisions is expected to increase, and
sustained demand for P2ROMs is also predicted.
The Oki Group withdrew from the high-end general-purpose
DRAM business in 1998 because of the high investment risk
caused by wildly fluctuating market conditions. Since then it has
targeted a role as a niche leader in the personal and mobile
markets by using its original technologies in the areas of ultra-low
power consumption and high voltages and high density to
develop distinctive LSI products including system LSIs, logic LSIs,
and system memories.
Because of the purposes for which they are used, personal and
mobile devices, such as mobile phones, information appliances
and in-vehicle equipment, require specific characteristics, such as
compact designs, low power consumption, high speed and high
voltage. The pace of innovation is extremely rapid in this field, and
it is necessary to design, develop and supply original LSIs within
short lead times to meet customers’ product development
strategies. To meet this demand, the Oki Group has upgraded its
organizational structures to improve development capabilities and
productivity and enhance its overall earning power in this area of
activity.
For example, semiconductor design and development functions
have been split off into one in-house company, and production
functions into another. It has also established a fab-free structure
that allows it to select between in-house and world’s leading
fabricators according to the requirements of each project.
The Oki Group’s activities in the personal and mobile markets
focus on three areas which enable it to fully utilize its
technological strengths: telecommunications, information
appliances and in-vehicle equipment. Its strategy calls for the
development and supply of unique semiconductor products in
each of these areas.
Semiconductors
Telecom Information
appliance In-vehicle
PHS-baseband
VoIP LSIs
EC/NC
Digital AV
ARM MCU
SOI MCU
In-vehicle MCU
ITS, navigation
TPMS
Sound generator LSIs
Integrated LSIs
TFT drivers
Voice synthesis LSIs
FiFo memories
VFD drivers
System LSIs
Logic LSIs
System memories
μPLAT®
Low power consumption
Communication & RF tech
SOI/SOS/FeRAM
High voltage process
Sound generator,
voice tech
P2ROM process
Graphics technology
Low power
consumption
Wireless / Radio controlled watch
Organic EL drivers
P2ROM/Video-LSI
AS-DRAM
Hironori Kitabayashi
Group Operating Officer
Semiconductor Business Group
*1 Personal Handyphone System
Business Strategy
Distinctive products targeted toward the
personal and mobile markets
Business Report 2005 Colors of Convergence
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