Toshiba 2001 Annual Report Download - page 29

The company will continue to adhere to its policy of ensuring “growth with profit” in semi-
conductor operations. This will involve targeting growth markets such as network devices,
digital consumer equipment and mobile devices.
In discrete devices, strong sales were recorded by photo couplers and other optical semi-
conductors, and small signal transistors for cellular phones—despite a slowdown in the
second half of the year. Discrete devices are a stable source of high earnings for the
Semiconductor Company, which is determined to remain the industry leader in this area.
Efforts to this end will focus on cultivating promising growth areas, notably telecommuni-
cations and digital consumer equipment. In partnership with Toyoda Gosei Co., Ltd., Toshiba
developed a gallium nitride-based white LED (Light Emitting Diode) that combines Toyoda
Gosei’s LED with Toshiba’s phosphors. It is scheduled for mass production from November
2001. With future improvements in luminosity, the white LED is expected to become an
adequate replacement for incandescent lamps.
In memories, price erosion from September 2000 on brought considerable challenges.
While mid-density NAND flash memories sold well, the slow development of the portable
digital audio player market pulled down demand for high-density products. And, despite
the rapid slowdown in the cellular phone market in the second half, NOR flash memories
stacked with SRAM in a high-density single multi-chip package (MCP) saw robust sales.
DRAMs, SRAMs and flash memories will continue to be the mainstay products in this
area. The company will also shift quickly to high-value-added DRAMs, including direct
RambusTM DRAM, in line with a strategy of reducing its reliance on PC markets. Toshiba
began developing FeRAMs (Ferroelectric Random Access Memory), next-generation
memories, with Infineon Technologies AG in January 2001. The joint venture aims to
develop a 32-megabit FeRAM by the end of 2002. This alliance will enable Toshiba to
expedite its R&D initiatives, and speed introduction of FeRAM to the rapidly expanding
cellular phone market.
Steady demand for system LSIs utilizing leading-edge processes was tempered by slow-
ing second-half sales of LSIs for audio products in China, for PCs and cellular phones,
bipolar LSIs for consumer products, LCD drivers and other products. All of these products
turned in strong performances in the first half of the year. Toshiba will work to deliver
added value by targeting close relations with leading companies in high-demand sectors.
A broad range of areas will be spotlighted, including digital consumer equipment, games
consoles, peripherals, cellular phones, telecommunications, networks, and automotives.
Allying with UK-based ARM, Toshiba was licensed the ARM946E-STM 32-bit embedded
Reduced Instruction Set Computer (RISC) microprocessor core, a move that has enabled
Toshiba to expand its intellectual property (IP) cores for system LSIs. At the same time,
drawing on its technological prowess in manufacturing, Toshiba will offer seminal solutions
for the embedded LSI market. In March 2001, Toshiba, Sony Computer Entertainment,
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The clean room at Oita Operations
produces system LSIs for digital
consumer equipment, networks
and communications equipment.
A new annex, opened in April
2001, has expanded operating
scale and technological capabilities.
Toshiba is shifting its DRAM busi-
ness to high-value-added products.
A competitive advantage in high-
speed DRAMs, supports penetra-
tion of non-PC areas, including
digital consumer equipment.