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35
Akio Sakumiya
Executive Officer
Company President
Electronic Components Company
What’s New
Business Strategy and Outlook for Fiscal 2009
Focus on regaining profitability and fortifying
monozukuri
of mechanical components
We forecast a decline of 9.6% year on year to ¥112.0 billion
in net sales and an improvement to ¥3.0 billion in operating
income in fiscal 2009. We anticipate sales continuing to
fall at a steep 26.2% year-on-year pace in the first half fol-
lowed by an upturn to growth of 13.1% in the second half
as industry inventory adjustments are concluded and sales
begin recovering overseas.
In fiscal 2009, ECB will take over automotive relay oper-
ations from the Automotive Electronic Components
Business (AEC).
ECB will consolidate IAB’s relay and switch product
manufacturing operations and AEC’s relay products into
the mechanical components business, to minimize the
impact of contracting markets and reestablish a founda-
tion for continuing competitiveness in the medium and
long terms. The Company aims to centralize and strength-
en its overall manufacturing operations by building up each
company’s materials, metal mold, processing, and other
component technologies (manufacturing methods).
Subsequently, ECB will be renamed as EMC (Electronic and
Mechanical Components Business Company) on September
21, 2009, as a part of the reorganization of Omron’s three
control-based businesses. EMC will specialize in mechani-
cal components, namely relays, switches and connectors.
We also plan to focus on developing the micro elec-
tronics (ME) business by using our precision processing
technology and applying other methods to add value and
enhance product customization. This will include bringing
the MEMS, CMOS, and other production lines into the
Yasu Factory to combine our semiconductor and compo-
nent manufacturing operations with the aim of further
establishing the Company’s competitive leadership.
Furthermore, as of September 21, 2009, MEMS, semi-
conductors and LCD backlights, which had been parts of
the ME business and which are still in the incubation stage,
will be transferred to the Others segment.
Touch Sensor Solutions
Omron has joined with Renesas Technology to
develop capacitive touch sensor solutions* for
the broadening range
of touch sensor appli-
cations for home appli-
ances, mobile phones,
and other devices.
Narrow Pitch FPC Connectors
Omron’s ultra-slim connector for flexible print-
ed circuits (FPCs) with a superior impact-resist-
ant backlock mechanism has an ultra-low 0.25
mm pitch, making it ideal for mobile phones
and other mobile devices. Our FPC connectors
use approximately
20% less substrate
surface area.
RF MEMS Switches
In September 2008, Omron released the
world’s smallest packaged MEMS chip that
realizes small size, high radio frequency (RF)
transmission at 10 GHz,
and reliable execution
of over 100 million on-
off switches.
* Capacitive touch sensors are sensors that are activated
by electric charges stored in the sensor to switch electric
charges on or off.
Flexible 0.59 mm thin sheet-type
LCD backlight
Small-size LCD backlights brighten
mobile phone and other mobile
device screens from behind to pro-
vide consistently bright display in
the dark or in direct sunlight.
Omron applied its technologies in
light-wave control and ultra precise
microreplication to develop and
manufacture backlights that set a
new standard for brightness and
low power consumption. We then developed a groundbreaking 0.59-millimeter
ultrathin sheet that was one-third thinner than existing sheets and capable of oper-
ating even when bent.
Omron achieved a significant improvement in LED brightness by using a
proprietary special processing method called “radial prism structure” to create a
microprism array. By applying this to the connectors of optical waveguide which
function to transmit uniform light from the LED light source to the screen, the
percentage of light transmitted to the LED screen increased to 95% from the
previous 75%.
The precision processing and microreplication technologies that resulted from
our trial-and-error approach also enabled the mass production of sheet-type LCD
backlights using the intricate radial prism structure. The innovation of flexible
backlighting creates opportunity for new concepts in display devices.
* As of September 21, 2009, ME Business will be transferred
to the Others segment.