Toshiba 2007 Annual Report Download - page 30

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28
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SEMICONDUCTOR COMPANY
In FY2006, we saw positive growth in demand for NAND Flash memory, CMOS sensors,
System LSIs for digital consumer products, and discrete devices. This positive trend pro-
duced a 25% increase in sales. In profit and loss, precipitous price falls in NAND Flash
memory had a major impact, reducing operating income by 4%. However, we did man-
age to secure a high level of profit that matched that of the previous fiscal year. In 2006,
we ranked fourth in global sales.
In NAND Flash memory, mobile phones and portable media players were the main
market drivers. This year, too, we anticipate dynamic market expansion, and we are
positioned to respond. Work on a 300mm wafer production facility (Fab 4) at Yokkaichi
Operations has made good progress since construction started in August 2006, and we
expect to start mass production in the third quarter of FY2007. We will also overcome
intensifying competition and continue to make progress by assuring our continued pre-
dominance in future generations of process technology and multi-level cell technology.
CMOS sensors and System LSIs for digital consumer products turned in solid per-
formances. Looking to the future, we established a successful System LSI mass produc-
tion platform for next generation 45nm process technology through co-development
with Sony Corporation and NEC Electronics Corporation.
With power devices and optical semiconductors in center place, the Discrete busi-
ness generated higher sales. We expect to see continued growth in demand for power
devices, and in readiness for that Kaga Toshiba Electronics Corporation started con-
struction of new production facilities in September 2006. The project was completed in
March 2007.
In FY2007 and beyond, we will reinforce our business portfolio by directing manage-
ment resources to product areas where we look for continued growth. NAND Flash
memory will continue to take central place as we promote efforts to expand our mem-
ory business, and we also expect growth in our System LSIs and Discrete businesses.
DISPLAY DEVICES & COMPONENTS CONTROL CENTER
In October 2005, we brought production of Cathode Ray Tube related products to an
end, and the influence of this move was felt in lower sales for FY2006. However, results
from the reorganization of the Cathode Ray Tube related business allowed us to
achieve substantial improvements. In the Electron Tubes and Devices business and the
Materials business, we saw favorable performances from current businesses. Looking
to the future, we will continue to strengthen our businesses and support social life by
supplying key devices: power tubes for accelerators and X-ray tubes in the Electron
tube business; precision manufactured parts and materials in the Materials business;
and thermal print heads and other products in the Solid-state Device business. Beyond
that, we will continue development of Direct Methanol Fuel Cell (DMFC) for mobile
BUSINESS REVIEW: ELECTRONIC DEVICES (CONT.)