Toshiba 2013 Annual Report Download - page 27

In an age where networks handle vast amounts of
information, we are the only company with capabilities in
NAND  ash memory, HDD (hard disk drives), and SSD (solid
state drives based on NAND flash memory), allowing us to
provide customers around the world with storage solutions
optimized for their systems. We have positioned high-
efficiency, energy-saving power devices as a growth
business, and in the System LSI business we are re ning our
business model to match the characteristics of each product
area. In December 2012 we increased our holding in NuFlare
Technology Inc. to make it a consolidated subsidiary.
NuFlare manufactures and sells advanced semiconductor
manufacturing equipment, and is closely involved in the
development of related technologies.
Discrete Business
In FY2012 net sales fell on lower demand, but the structural
reform of manufacturing sites made a positive
contribution, ensuring a profit equivalent to that of the
previous year. Moving forward, we will return to growth by
concentrating on high value-added products. We have
positioned white LEDs as a next-generation growth
business, with applications extending into lighting,
automotive equipment and more. Working with Bridgelux
Inc. of the US, we developed white LED elements that
utilize gallium nitride crystals on a silicon substrate (GaN/
Si), and in December 2012 commenced mass production of
white LED lights using these elements. In April 2013 we
agreed to acquire Bridgelux’s white LED element
development assets, strengthening our business. In power
devices, where demand growth is expected for industrial
and automotive equipment, we have successfully applied
silicon carbide technology, winning stable device operation
and significant reductions in power loss. We commenced
mass production in March 2013 of products supporting
process migration.
Semiconductor & Storage Products Company
White LED lighting
Power device
System LSI Business
In FY2012 net sales declined on lower demand. However,
expanding the proportion of high value-added products
and carrying out structural reform secured significantly
higher operating income and a return to the black. We are
particularly strong in CMOS image sensors, focus products
to drive expansion. In November 2012 we entered the
automotive and surveillance camera market, where growth
is expected in coming years, with products that can shoot
high-quality images even in high-contrast locations. In
December, we developed a CMOS sensor for digital
cameras that offers the industry’s highest resolution*1, 20
megapixels. In the Logic
LSI business, we moved
to counter the long
development times and
ever higher development
costs of Custom LSI by
offering new custom
products with shorter design times and lower development
costs. Looking ahead, in addition to promoting e cient and
streamlined management in response to business
characteristics, we will continue to bolster our technological
strengths and proposal quality.
We recently teamed up with
Rakuten to launch a new female
health and beauty service,
“Rakuten Kirei °C Navi,” that uses a
Toshiba-made thermometer to
provide advice and information.
Memory Business
In FY2012, lower net sales and operating income re ected
reduced output due to production adjustments and price
erosion in the  rst  scal half. However, with improvements
in the product mix and the supply and demand balance in
the second half, plus the contribution of reduced costs
from further process migration, we made significant
progress in strengthening the revenue base and secured
pro t. More speci cally, since July 2012 we have worked to
improve the supply and demand balance by adjusting
production at Yokkaichi Operations, concentrating on
products for the USB and card markets. We have also
extended the application of 19-nanometer process
technology and increased production of high value-added
products. We have aggressively launched new products. In
February 2013 we started sample shipments of the
CMOS Image sensor
The thermometer for
“Rakuten Kirei °C Navi”
Business Review / Electronic Devices Segment
25
TOSHIBA Annual Report 2013