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R&D for a High-Profit Growth Company

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R&D for a High-Profit Growth Company R&D for a high-profit growth company Thursday, 7th April 2005 Dr. Michiharu Nakamura Executive Vice President and Executive Officer Head, Research & Development Group Hitachi, Ltd. ©2005 Hitachi, Ltd. All rights reserved. 1 Contents 1 Introduction 2 FY 2004 Achievements 3 FY 2005 Harvest 4 R&D with 2010 in sight ©2005 Hitachi, Ltd. All rights reserved. 2 11 -1. Hitachi Group R&D Philosophy Based on technology and collaborative creativity, direct the group’s R&D efforts towards satisfying customers in ways that contribute to the prosperity and safety of society. Develop world-leading technologies that drive further growth of the Hitachi Group. Create paradigm shifts in industrial technology with original ideas and an accurate understanding of social trends. ©2005 Hitachi, Ltd. All rights reserved. 3 11 -2. Hitachi Group R&D Scheme Year 2004 2006 2009 2014 Management “i.e.HITACHI PlanⅡ” strategy Business / Long-term Technology Development Plan technology strategy Business Strategy Roadmap Creation of next- HH aa Core Technology 2010 generation core Expansion / incubation of rr businesses / new “Inspire A” businesses vv ee businesses ss Paradigm-shifting tt Technology Hitachi Group Platform Research Hitachi Group Group R&D Technology Platforms Across the Frontier Research Hitachi Group Sponsored Research Advanced Sponsored Research FY 2004 Achievements FY 2005 Harvest ©2005 Hitachi, Ltd. All rights reserved. 4 Contents 1 Introduction 2 FY 2004 Achievements 3 FY 2005 Harvest 4 R&D with 2010 in sight ©2005 Hitachi, Ltd. All rights reserved. 5 22 -1. FY2004 R&D Approach Presented at 2004/4/7 Information Meeting Promoting R&D Through z Hitachi Group CTO* Meeting Group Collaborative Creativity z Hitachi Group Frontier / Platform Research z Technology platforms across the “Engine” for Hitachi Group Creating and *CTO : Chief Technology Officer Strengthening Businesses “Inspire A” Businesses Raising R&D Efficiency Promoting Technological Development zSynchronize with management strategy zFoster and strengthen core technologies zR&D collaboration with outside parties zConcentration of R&D resources ©2005 Hitachi, Ltd. All rights reserved. 6 Promoting 22 -2. “Inspire A” Businesses <8 Areas of Business> Business Aiming for No. 1 for next Areas to Potential new Expansion generation backbone business Foster backbone business areas Medical & Key Technologies, Production Biotechnology ** Across & Testing ・ Medical Diagnostic & Devices Divisions Systems ・ Nanotechnology & Materials Equipment ・ Medical Support ・ Li Batteries ・ Taking ・ Semiconductor Systems Fuel cells ・ advantage & Liquid Crystal Display Proton Beam Cancer of Hitachi Manufacturing Equip. Therapy Systems Automotive Group Social Service & ・ CIS Storage Infrastructure ・ Electric Solutions Power Train Systems ・ Cruise Control* ・ Storage Solutions ・ Outsourcing ・ Urban renewal ・ HDDs ・ E-government ・ Transportation Systems Individual ・ Ubiquitous HDD ・ Network Solutions ・ Coal Thermal Power CIS : Car Information ・ RFID Solutions Systems* Effort ・ Broadband Access Systems Propelled Equipment* PDP: Plasma Display Panels by ・ System Logistics Consumer 3PL : Third Party Logistics individual (3PL)* ・Degital Media ・PDPs* business ・TFT LCDs for TV* groups * Newly added theme ** Key Technologies & Devices has merged with Batteries ©2005 Hitachi, Ltd. All rights reserved. 7 Examples of “Inspire A” 22 -3. Business Achievements (1) Storage Solution HDD : 1 inch Microdrive Communications Network Established ALAXALA Networks SANRISE USP HDD for Portable Music Terminal ALAXALA Networks Corporation, Information & Telecommunication Hitachi Global Storage Technologies Information & Telecommunication Systems Group Systems Group Wooo Li Battery Established Hitachi Vehicle Energy Automotive Systems Group, 55” PDP TV, DVD Recorder with 400GB HDD Shin-Kobe Electric Machinery Co., Ltd., Ubiquitous Platform Systems Group, Hitachi GST Hitachi Maxell, Ltd. ©2005 Hitachi, Ltd. All rights reserved. 8 Examples of “Inspire A” 22 -4. Business Achievements (2) Transport Systems TFT LCD for TVs Outsourcing Preferred manufacturer for CTRL Sankyo Co., Ltd. contract domestic service trains in the UK AS-IPS2 LCD Information & Telecommunication Power Systems Group Hitachi Displays, Ltd. Systems Group Medical Diagnostics Fuel cells, RFID Solutions, Ubiquitous HDD: Information Terminal “Nature Viewer” on display at Aichi World Expo Magnetic Cardiograph Information & Telecommunication Systems Group, (Received Ten Best New Products Award) Ubiquitous Platform Systems Group, Hitachi GST Hitachi High-Technologies Corporation ©2005 Hitachi, Ltd. All rights reserved. 9 -5. Establishment of 22 Hitachi Vehicle Energy, Ltd. Strengthen competitiveness by integrating the Li-ion battery business in one company Hitachi, Ltd. R&D Group Shin-Kobe Electric Hitachi Vehicle Energy, Ltd. (Materials Research ResourcesResources Machinery Co., Ltd. Dec. 2004: Pilot line completed Laboratory, etc.) Hitachi Group Hitachi, Ltd. Batteries / Components / Control Systems (Hitachi Chemical Co., Technology Technology Technology / Highly Functional Materials Ltd. Hitachi Metals, Ltd., Hitachi Maxell, Ltd. etc.) 2nd Generation Portable： 4,000 • New Manganese Hybrid Vehicles / Trucks Positive Pole • New Electrolyte Fuel-cell Hybrid Vehicles ExpandExpand Hybrid Diesel applications 3,000 Li-ion applications st 2,000 1 Generation • Spinel Manganese Positive Pole (’03) • Carbon Negative Pole Ni-MH 1,000 Ni-MH (’01) Fixed： Output Density (W/kg) Back-up Power Source (Cellular Phone Base Stations, 0 Buildings, etc.) 0 50 100 Energy Density （Wh/kg） ©2005 Hitachi, Ltd. All rights reserved. 10 -6. Examples of Hitachi Group 22 Frontier Research Achievements Silhouette Counter Organic TFT- driven Color LCD Nov. 2004 ＴＦＴ Nov. 2004 Presented to the Prime Minister & World’s highest definition achieved Mirror Display 360°3D360°3D DisplayDisplay Cabinet (National IT (Collaboration with the National Institute of Advanced Industrial Strategy Council) Science and Technology (AIST); a NEDO supported project） Sheet Display June 2004 Human Interaction Sept. 2004 EMIEW*: An interactive robot responding to dialogue Successful Observation of the Spin-Hall Effect to support daily life (Magnetic properties induced by passing electric current through a semiconductor) Interactive Natural hand communication movement Hitachi Cambridge Agile collision Laboratory Research avoidance Achievement High-speed (Joint research with Univ. mobility 2005 Aichi World of Texas, etc.) Expo Exhibit (June 2005 - ) (Collaboration with the University of Tsukuba; NEDO supported project) Robotics March 2005 Spintronics Feb. 2005 * Excellent Mobility and Interactive Existence as Workmate ©2005 Hitachi, Ltd. All rights reserved. 11 -7. Examples of Hitachi Group 22 Platform Research Achievements 0.1mm Fatigue Crack Solder High Accuracy Strength Analysis Analysis tool for fatigue cracks in solder joints (developed for use in automotive LSIs, etc.) Cu Sn Stator Current waveform analysis Cu-Sn 50µm Compound Optimal High-temperature Lead-free Solder Rotor motor dimensions Solder consists of Power Electronics System Cu powder / Sn powder mixed paste (developed for high heat-proof joints) Original optimal motor design algorithm ©2005 Hitachi, Ltd. All rights reserved. 12 22 -8. Open R&D Environment (1) Strengthening Global R&D Formation Hitachi America, Ltd. <40> Hitachi Europe Ltd. <25> Hitachi (China) Research & Development Corporation <80> Storage Network Solutions Quantum Communications Car Information Systems Bioinformatics Broadband Wireless Systems Organic Electronics Total Supply Chain Management Technology Hitachi Asia Ltd. <5> (Singapore） April 2004 : Established independent R&D organization in China IP Network Home Network Digital TV R&D Organization <Est. R&D Personnel (FY 2005)> Main Research Themes April 2004 : Established Singapore Research Office Magnetic Disks ©2005 Hitachi, Ltd. All rights reserved. 13 22 -9. Open R&D Environment (2) Establishment of Hitachi (China) Research & Development Corporation ・・ EstablishedEstablished：：AprilApril 20052005 (Beijing(Beijing HeadHead Office),Office), JuneJune 20052005 (Shangha(Shanghaii BranchBranch Office)Office) ・・ CapitalCapital ：：USD6,000,000USD6,000,000 ・・ NumberNumber ofof EmployeesEmployees：： 8080 (Estimate(Estimate forfor 2005)2005) →→ 120120 (Estimate(Estimate forfor 2006)2006) 1. Contribute to local business efforts as the R&D hub in China 2. Strengthen relationship with the government and major universities in China 3. Employ and develop talented staff Tsinghua Customer University Shanghai Jiao Tong Local Affiliates of Business University Groups & Group Companies Collaborative Creation Fudan R&D Division Hitachi University (China) • Planning •• Localized Localized DevelopmentDevelopment Academic • Development •• R&D R&D HubHub FunctionFunction R&D Collaboration •Design Corp. •IP Hitachi (China) Ltd. ©2005 Hitachi, Ltd. All rights reserved. 14 22 -10. Open R&D Environment (3) Development of innovative ・ technology through comprehensive WidespreadWidespread ・Univ.Univ. ofof TokyoTokyo Disaster Recovery Technology ・・MEXT*MEXT* collaborative alliances with Disaster Recovery Technology A method to universities and participation in update data at the Back-up Site national projects back-up site using transmission log ログLog data was Dataﾃﾞｰﾀ developed, reducing Logログ Update telecommunication Dataﾃﾞｰﾀ Main Site costs by 40%. ・・Univ.Univ. ofof TokyoTokyo PhotonicPhotonic CrystalCrystal DeviceDevice forfor ・・MEXT*MEXT* OpticalOptical CommunicationsCommunications
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