Toshiba 2010 Annual Report Download - page 28

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The Semiconductor Company comprises three
business areas: memories, system LSI and discrete
semiconductors. Main products include NAND
flash memory (memory), digital imaging LSIs,
analog ICs, CMOS sensors and ASICs (system LSI)
and power devices and optical semiconductors
(discrete semiconductors).
In FY2009, the semiconductor market left
behind the severe slump in demand and
inventory adjustment of the second half of
FY2008. Increased demand for memories and
stable NAND flash memory prices contributed
significantly to memory sales. Although system
LSI sales saw a full-year decline, economic
stimulus packages in various countries and
recovering demand in emerging countries
pushed second half sales higher than for the
same period a year earlier. Initially sluggish
demand for discrete devices picked up in the
second half, most notably in power devices and
small signal devices, and full term sales matched
the previous year. Overall, revenue increased in
FY2009, and combined with cost reductions from
restructuring to secure a return to operating
profit. We also maintained our number three
position in world semiconductor market share* in
CY2009.
The Semiconductor Company is promoting
fundamental restructuring where necessary. The
system LSI business restructured the front-end
process at Kitakyushu Operations and other
facilities and transferred back-end processes to a
new joint venture. The discrete business now
undertakes over 50% of back-end processes
overseas and has improved cost competitiveness.
In addition, refinements in the development
system have increased efficiency, reduced fixed
costs and contained investment in manufacturing
facilities. These measures are supporting the
transition to a robust business capable of
withstanding market fluctuations.
Alongside restructuring, we are also
determined to promote business expansion, and
have restarted investment in manufacturing
facilities. While highly selective in each investment
decision, we recognize the growth potential of the
NAND flash market and decided in March 2010 to
construct Fab 5 at Yokkaichi Operations.
Moving ahead, we will draw on our cutting-
edge technology and ability to develop
differentiated products, focus on optimizing
investment efficiency and improving our market
competitiveness, and “return to the path of
sustained growth with profit.”
Semiconductor Company
Power Devices – aiming for a bigger market share
In 2009 we secured the second largest share in the power device
market,* and we are determined to achieve further growth.
(Photo: Large scale power devices used to regulate motors in
manufacturing plants and rolling stock.)
* As of March 2010. Source: Gartner Inc.
SSD for notebook PCs
With demand expected to continue
to grow, we are expanding our
NAND Flash memory line-up.
*As of March 2010. Source: Gartner Inc.
Business Review
26