Fiscal 2006

The Hitachi Cable group actively conducts research and development activities, ranging from the development of new materials and new products to the development of production technologies, in an effort to create original and innovative technologies.
We have created a new post (Chief Technology Officer, or CTO) and have restructured our research and development organizations into the Corporate Advanced Technology Group and the Research & Development Group. The former formulates and monitors the research and development strategies, whereas the latter carries out the actual research and development. This new structure will enable us to develop new products and new technologies ahead of our competitors, and thus get them to market earlier.
The actual research and development work is mainly carried out by the Research & Development Group, which consists of the Materials Technology Research & Development Center, the Electronic Materials Research & Development Center, the Photonics Research & Development Center, and the Cross Technology Development Center; the ITS (Intelligent Transport Systems) Development Office; and the design and development sections of each business division.
We also maintain close communication and cooperative relationships with the research and development organizations of the Hitachi Group companies including Hitachi, Ltd., and promote joint research with customers and governmental research and development institutions as needed, thus achieving effective research and development of advanced technologies.
The following describes the research and development topics addressed by our company group in each business section and the achievements of those activities in the consolidated fiscal year 2006 ended March 31, 2006. Total research and development expenditures during the consolidated fiscal year totaled 10,832 million yen.

Wires and Cables Business

In this section, we address the research and development of industrial wires and cables, and transmission and connection technologies related to electronic equipment. The main achievements in the consolidated fiscal year 2006 are indicated below. Research and development expenditures in this section amounted to 2,887 million yen.

(1)	Development of electric cables for cars of Taiwan High Speed Rail (China)
(2)	Development of 85°C-rated laminated power bus bars
(3)	Improvement in workability of flame-retardant polyethylene cables
(4)	Development of connector cables compliant with 4-Gbps fiber channels

Information and Telecommunications Networking Business

This section conducts research and development of cables and sensors for information communications, including fiber optic cables, various devices and components necessary for constructing the Internet and mobile phone systems, network equipment, base station antennas for mobile phones, and products related to next-generation advanced road traffic systems. The main achievements in the consolidated fiscal year 2006 are given below. Research and development expenditures in this section amounted to 4,223 million yen.

(1)	Development of first domestically manufactured terabit-class chassis-type Layer 2 switching hub in Japan (20 slots, maximum of 10 Gbit/s x 40 port switching, maximum capacity of 1.8 Tbit/s)
(2)	Development of box-type Layer 2 switching hub (1 Gbit/s x 48 ports)
(3)	Development of performance-enhanced user authentication switching hub (high-security network for collaborative operation with quarantine systems provided by other companies)
(4)	Development of LX4 optical transceiver for 10 Gbit Ethernet
(5)	Development of short distance SFP (Small Form-factor Pluggable) optical transceiver for RoHs-compliant 4-Gbit/s fiber channels

Sophisticated Materials Business

The research and development activities conducted in this section can be divided into the following three areas. Research and development expenditures in this section amounted to 3,722 million yen.

A. Semiconductor Package Materials & Electronic Components Field

In this field, in response to the miniaturization and improvement of functions in information equipment such as mobile phones, and higher definition of LCDs (liquid crystal displays), we focus on the research and development of superfine processing and bonding technologies and plating technologies for TAB tapes and circuit boards, the research and development of the growth of single crystals for compound semiconductors such as gallium arsenide, epitaxial substrate semiconductor elements and applied products, and related products. In the consolidated fiscal year 2006, we achieved the following.

(1)	Development of new material for fine pitch COF and establishment of surface treatment technology for wider strips
(2)	Development of peelable tapes for LGA (Land Grid Array)
(3)	Development of elemental technologies for the next generation FSBGA (Folded Stack Ball Grid Array)
(4)	Commercialization of 2-inch gallium nitride substrate for blue-violet laser
(5)	Commercialization of 4-element epitaxial wafers for High-bright and Good-uniform red Light Emitting Diode

B. Copper Products Field

In this fields, we address the research and development of copper strips used in electronic components and heat transfer tubes in heat exchange device, and system products using those parts, as well as metal-base superconducting wire rod and oxide-base high-temperature superconducting materials. The achievements in the consolidated fiscal year 2006 are as follows:

(1)	Development of mass production technology for 7-µm copper foil
(2)	Development of new use and mass production technology for new dual gauge copper strips
(3)	Development of next generation Li-ion battery material
(4)	Development of new high-performance, lightweight heat transfer tubes
(5)	Development of high-strength copper alloy strips and establishment of related manufacturing technologies
(6)	Development of high-performance Nb3Sn wire rod for NMR
(7)	Commercialization of copper foils for shielding

C. Automotive Parts Field

In this field, we conduct research and development for automotive hoses such as brake hoses and power steering hoses, as well as automotive electronics, components for IT devices, etc. The main achievements in the consolidated fiscal year 2006 are as follows:

(1)	Mass production of superlow-expansion, high-durability brake hose (HTF-4)
(2)	Development of miniature pressure sensor for jam protection