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TOSHIBA ANNUAL REPORT 1999
Page
28.
97 98 99
300
600
900
1,200
1,500
-6
0
6
12
18
Net Sales
(¥ billion) (%)
Sales Annual Increase (%)
Share of Net Sales %
Mar. ’97 ’98 ’99
21.0 22.0 21.0
Note: Segment sales include intersegment
transactions.
Mar.
ELECTRONIC DEVICES & MATERIALS
Segment sales decreased 7 percent to ¥1,250.8 billion (US$10,337 million) and declined
1 percent to 21 percent of total sales.
In semiconductors, the market for DRAMs, particularly 64M DRAMs, was plagued
by rapidly falling prices, sluggish demand for consumer products due to weakness in the
Asian economies and a prolonged adjustment in production of mobile communications
products. Logic ICs, discrete devices and other products also remained sluggish. The
overall result was a substantial drop in the total semiconductor market compared with
the previous year. At Toshiba, semiconductor sales were down for the third year in a row,
falling 13 percent to ¥760.0 billion.
Toshiba increased emphasis on logic devices and initiated full-scale
production of DRAM-embedded logic devices using 0.25-micron processes.
Additionally, steps were taken to raise sales of system LSIs for graphics and
other demanding applications. Exemplifying this drive was the completion
of development of a new microprocessor with Sony Computer Entertainment
Inc. for its next-generation game console. The world’s first 128-bit micropro-
cessor, this device is capable of processing immense volumes of multimedia
data at very high speeds. A production joint venture company located at
Toshiba’s Oita Operations was formed by the two partners in June 1999.
In memory devices, projections continue to indicate more growth in
demand despite the recent sharp drop in sales. Expansion will be propelled by
progress in multimedia applications that fuse data, communications and im-
aging functions. At its Yokkaichi Operations, Toshiba is currently producing
128M DRAMs on a commercial scale. Toshiba has strengthened its partner-
ship with Winbond Electronics Corp. to cover technology transfer of 256M
DRAMs, in addition to the relations in 16M and 64M DRAMs.
Applications for Toshiba’s NAND EEPROM flash memories are grow-
ing. Currently used mainly to store images in digital still cameras, these
devices are expected to gain acceptance as a music storage medium, too.
Anticipating higher demand, Toshiba commercialized a 256M flash
memory during the fiscal year.
Global demand for color picture tubes is expanding at an annual rate of 3 to 4 percent
with growth most pronounced in the larger size models. In Japan, the market for TVs
with flat picture tubes, especially 29 inches and larger, is growing rapidly. To position
itself in the mainstream of this market, Toshiba has added 29-inch and 36-inch models to
its line of 28-inch and 32-inch flat-surface CRTs.