[Basic businesses]
The growth of video distribution services has lead to a rapid increase in demand for communications lines globally. At the end of fiscal 2007, large optical submarine cable projects started, primarily in the Asia and Pacific regions. The Hitachi Cable Group is one of the world's three major suppliers of optical submarine cables. We will ensure that we can meet demand for optical submarine cables by taking advantage of our world-leading technical and manufacturing capabilities and the geographical advantages of close access to manufacturing establishments in the Asia and Pacific regions.
Optical submarine cables
[Electronics]
Among other factors, miniaturization in semiconductor packages and rising copper prices have led to growing demand for copper alloy strips that can be shaped into thin, high-strength, heat-resistant shapes. Closely monitoring this market and technology trends, we have decided to launch a copper strip manufacturing facility reinforcement project involving an investment of 6 billion yen. Slated to begin operating in fiscal 2010, this facility will increase manufacturing capacity for copper strips and expand business, primarily in high-value added products.
In the field of compound semiconductors, we will begin full-scale production of gallium nitride wafers to meet demand generated by next-generation DVDs and other products. To improve productivity, we also plan to address earlier developments in three-inch wafers. In the area of gallium arsenide products, we will focus on high-brilliance LED epitaxy operations in Japan and generic LED epitaxy operations in Taiwan to meet increasing demand for LEDs.
In the field of semiconductor packages materials, we will meet growing demand for COF (Chip On Film) for large LCD (Liquid Crystal Display) panels by improving manufacturing capabilities by some 30%, by establishing low-cost manufacturing techniques based on increased width, and by applying our own specialty fine-pitch technologies. In addition, we will expand sales of products implemented with µ-BGA*1 and promote development of new TAB applications.
*1 µ-BGA is a registered trademark of Tessera Inc., U.S.
BGA is an abbreviation for Ball Grid Array.
Copper alloy strips
Gallium nitride wafers
[Wireless, broadcasting, and information networking]
We anticipate full-scale demand from communication carriers for next-generation network products from the second semester of fiscal 2008. Hitachi Cable plans to release products that meet the standards and needs of next-generation networks in a timely fashion in the areas of our current major products, including Ethernet *2 switches. In the private and public-related markets, we intend to expand solutions menus by expanding product lines, strengthening partner sales, and promoting reconstruction and reinforcing joint efforts within the Hitachi Cable Group.
Apresia *3 Ethernet switch series (Left: for telecommunication carriers; Right: for private and public-related markets)
*2 Ethernet is a registered trademark of Fuji Xerox, Co., Ltd.
*3 Apresia is a registered trademark of Hitachi Cable, Ltd.
[Automotive *4]
In the automotive field, we will enhance manufacturing capabilities in China, Thailand, and the U.S. to meet global market demands. In addition to brake hoses - one of our core products - we will focus on developing and expanding sales of technologies and products that express awareness of environment, safety, and information. Such products include power harnesses for HEVs*5 and sensors.
*4 Please refer to the serial feature for information on automotive business strategies and products.
*5 HEV is an abbreviation for Hybrid Electric Vehicles, commonly referred to as hybrid cars.
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