Yamaha 2006 Annual Report Download - page 26

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26
The electronic equipment and metal products segment mainly comprises the
semiconductor business centered around LSI sound chips run by the Yamaha
Semiconductor Division and its manufacturing subsidiary Yamaha Kagoshima
Semiconductor Inc. It also includes the high-performance copper and nickel
alloys and related processed parts supplied by Yamaha Metanix Corporation.
Semiconductor products find applications in Yamaha’s areas of comparative
strength—music and networks—including mobile phones, amusement and
automotive equipment, consumer products such as televisions and communi-
cations equipment. Electronic metal products, meanwhile, have broad applica-
tion in PCs, mobile phones, and automotive electronics.
VITAL TECHNOLOGIES
Review of Operations Electronic Equipment and Metal Products
Fiscal 2006 performance
Segment sales fell ¥12.9 billion, or 18.7%,
compared with the previous year, to ¥56.2
billion. Lower market demand for LSI sound
chips for mobile phones was compounded by
unit sales price erosion. Sales, however, of
electronic metal products began to recover
slightly in the second half of the year along with
digital consumer electronics markets. Segment
operating income nonetheless fell a significant
60.3%, to ¥7.9 billion, reflecting the drop in
demand and the associated price erosion of
LSI sound chips for mobile phones.