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Newly established in July 2011, this division provides DVD
and Blu-ray drives for integration in notebook PCs, etc. The
manufacture of optical disk drives (ODD) is carried out by a
group company, Toshiba Samsung Storage Technology
Corporation, and the new division also provides oversight
of the management of that business.
FY2011 saw a sudden change in the supply and
demand of optical disk drives in the aftermath of the Great
East Japan Earthquake and this, combined with parts
shortages caused by the  ooding in Thailand and sluggish
PC sales, resulted in a year-on-year decline in sales and
operating income.
Moving forward, we will continue to number among the
top companies in ODD market share and to retain our position
as one of the leading companies in this business  eld.
The company manufactures and markets small- and mid-
sized displays for a wide range of applications, including
smartphones and other mobile devices, car navigation
systems and industrial uses.
In FY2011 the overall small- and mid-sized LCD display
market entered into a phase of expansion, driven by
demand for smartphones. Our production line in Fukaya
City, Saitama Prefecture, suffered some damage in the
Great East Japan Earthquake but is now back on-line and
has secured a full recovery of production. Net sales were
lower in FY2011 due to some lingering effects from the
earthquake, plus the effect of divesting an overseas
subsidiary, AFPD*9, in 2010. However, concerted e orts to
push forward with business structural reform produced
positive results and an increase in operating pro t.
In March 2012, all shares of Toshiba Mobile Display
Co., Ltd. were transferred to Japan Display Inc. The new
company was established with co-funding by Innovation
Network Corporation of Japan (INCJ), Toshiba Corporation,
Sony Corporation and Hitachi, Ltd., and integrates their
small- and medium-sized LCD display businesses. The new
company will draw on the capabilities and cutting-edge
technologies of the investors and a capital infusion from
INCJ to enhance the scale and competitiveness of the
display business.
ODD Division
Toshiba Mobile Display Co., Ltd.
Storage products business
The market in FY2011 was characterized by tight supply and
demand as a result of the Great East Japan Earthquake and
the  ooding in Thailand. Our production facility in Thailand
was among those inundated by the  oods, but a fast transfer
of production to alternative sites and increases in market
prices supported us in maintaining a good performance and
recording increased sales and increased income.
In the storage products business we are working to
increase our competitiveness by developing higher
performance, larger capacity models and expanding our
line-up. In August 2011 we launched a 2.5-inch HDD with
1-terabyte capacity for use in notebook PCs and for TVs
with a recording function, and in October 2011 we released
a 2.5-inch HDD for enterprise-use with a 300-gigabyte
capacity, the largest industry class*6. In addition, we
launched “FlashAir™, the world’s  rst*7 SDHC memory card
integrating a wireless LAN in September 2011, and in April
2012 we released “EXCERIA™, an SDHC memory card that
achieves the world’s highest transmission speed*8.
In another move, in May 2012 we completed a
transaction with Western Digital Corporation of the United
States, under which we acquired certain 3.5-inch HDD
manufacturing equipment and related intellectual property
and transferred to Western Digital all shares in our HDD
production facility in Thailand, Toshiba Storage Devices
(Thailand) Co., Ltd. This transaction strengthens our ability
to supply cost-competitive large capacity HDD, and also
position us to provide HDD in all product categories.
*1: Based on Toshiba research, as of May 2012
*2: Based on Toshiba research, as of April 2011
*3: Based on Toshiba research, as of February 2012
*4: As a 3-bit per cell product, based on Toshiba research as of February 2012
*5: As a 128Gb product, based on Toshiba research, as of February 2012
*6: As a 15,000rpm product for businesses, based on Toshiba research, as of October 2010
*7: Based on Toshiba research, as of September 2011
*8: Based on Toshiba research, as of March 2012
*9: Advanced Flat Panel Display Pte. Ltd.
Storage products for enterprise-use
Expand scope of key businesses through business
transformation
Business Review / Electronic Devices Segment
30 TOSHIBA Annual Report 2012