March 25, 2005
Toray Group IT-related Products Segment and Strategies for Electronics & Information Materials Division
Satoru Masuzaki
Senior Managing Director and Representative Director, General Manager, Electronics & Information Materials Division
Toray Industries, Inc.
1 Contents
I. Operation Review and Forecast of Toray Group IT-related Products Segment
II. Operation Review and Strategies for Electronics & Information Related Businesses 1. Business Scale of Electronics & Information Related Businesses 2. Toray’s Business Position in the Electronics & Information Related Industry 3. Strategies for Display Materials - Display Materials Market - Business Strategies for LCD-related Materials - Business Strategies for PDP-related Materials
- Business Strategies for Driver IC Bonding and Circuit Materials
4. Strategies for Circuit-related Materials
5. Strategies for Semiconductor-related Materials 6. Advanced Materials Projects
III. Conclusion 2 3 The Importance of IT-related Products Segment to Toray
IT-related Products Segment playing an important role in the attainment of an “offensive” management IT-related Products Segment playing an important role in the attainment of an “offensive” management IT-related Products Segment is the bottom line of Toray’s Advanced Materials Businesses Main “Project NT-II” Action Points Circuit and Semiconductor Materials: Circuit Management Projects IT-related Materials, Electronics Resins & Films, Capacitor Films, Release Films, IC packaging-related Materials, IC Issues Products packaging / mounting Equipment, Electro-Chemical Products, etc. Developing 1. Activating corporate culture Display Materials: Optical PET Films, LCD Color innovative Filters, Color Filter Materials /Equipment, PDP attitudes and
4. Promoting marketing innovation Expanding 5. Improving profitability by product revenues and profits through 6. Expanding advanced materials businesses business Market Businesses structure reform Share (from the 7. Expanding No.1, only 1, first1 businesses “offensive” Chemicals •DMSO 44% perspective) Many “No.1” IT-related Products Carbon •Carbon Fiber 37% 8. Expand businesses outside Japan Fibers Composite Material
Market Medical •Blood Purification Device 100% Businesses Strategic Expansion of IT-related Products Share Products for Treating Septicemia Businesses (existing production bases) Fibers •Polyester-Cotton Blended Textile 30% Electronics •Polyimide Adhesive Tape 81% and •Polyester Taffeta 21% for TAB Korea: Circuit Material, Film Textiles •Man-made Suede 32% • Photosensitive Relief 37% Printing Plate •Nylon Filament Yarn for Fishing Net 21% •Fluorofiber 39% LCD •Slit Coater for LCD Color 75% •Polyester Staple Fiber for Sewing Thread 28% Materials Filter (5G or larger) •Polyester-Rayon Blended Textile 12% Toray •LCD Driver IC Bonding 40% Engineering Equipment Thailand:Resin Plastics •PET Film 19% •OPP Film for Capacitor 14% •Marking Equipment for 70% China: Film, Resin LCD panel •Para-Based Aramid Film 90% •PPS Film 100% Total 31 Businesses (Mar/04 Sales: ¥ 282.2 billion, Malaysia:Film, Resin •PE Film for Protection 43% Operating Income: ¥ 37.5 billion) 4 Business Forecast of Toray Group by Segment
¥ Billion Net Sales ¥ Billion Operating Income 1,400.0 90.0 1,310.0 80.0 75.0 80.0 45.0 1,200.0 9.0 1,088.5 150.0 70.0 2.5 63.1 Adjustment 1,000.0 47.9 4.0 New Products,others 120.1 215.0 60.0 56.8 +20.9% 0.3 Pharmaceuticals & 5.9 Medical Products 800.0 177.8 50.0 28.5 Housing & 3.5 1.7 Engineering IT-related Products 300.0 +59.9% 600.0 40.0 Plastics & Chemicals 17.8 254.8 Fibers & Textiles 30.0 15.0 400.0 9.2 525.0 20.0 200.0 424.8 10.0 18.4 21.0
0 0 04/3 05/3 04/3 05/3 (Forecast) (Forecast) 5 Income Increase of Toray Group IT-related Products Segment
¥ Billion ¥ Billion Trends of Net Sales Trends of Operating Income 300.0 40.0 250.0 35.0 250.0 215.0 177.8 30.0 28.5 200.0 147.7 141.4 150.0 20.0 17.8
100.0 9.3 10.0
50.0 1.3
0 0 02/3 03/3 04/3 05/3 Early Achievement 02/3 03/3 04/3 05/3 Early Achievement (Forecast) (Forecast) 6 Operating Income Forecast by Toray Group Business Segment
¥ Billion 140.0 Over 120.0 Elimination & Corporate Pharmaceuticals and Medical Products 120.0 Housing and Engineering New Products and Other Businesses 100.0 (including Carbon Fiber Composite Materials) 100.0 IT-related Products Plastics and Chemicals Fibers and Textiles 80.0 80.0
35.0 60.0 56.8 51.2 28.5 40.0 6.8 33.0 17.8
18.8 20.0 9.3
1.3 0 01/3 02/3 03/3 04/3 05/3 Early Mid-term (Forecast) Achievement Outlook
7 Major IT-related Products by Division
Electronics & Plastics & Films Subsidiaries & Information Materials Division Affiliates Division LCD Materials Division TAB Tape PET Film STEMCO (Korea) (JV Circuit Materials, Se (ICC) (release film, etc) with Samsung Group) miconductors Copper Clad Laminate PPS Film STECO (Korea) (JV Film for FPC (Torelina*) with Samsung Group) (KCC) Para-based Aramid Toray Saehan Adhesive Tape for Film (Mictron*) (Korea) Semiconductors Toray Advanced Film (TSA) Engineering Plastics (two-layers plated Semiconductor (PPS, LCD, etc) materials for COF) Materials Other Insulating (polyimide coating Materials material)
Display PDP Materials LCD Color Filters PET Film Matsushita PDP (Medium / Small) (reflective film, etc.) (PDP-TV) PDP-related PDP Material Toray Engineering Materials Materials (paste for Black, PDP Front Plate Film (slit coater, COG RGB) bonder)
TFT Planarizing Toray Fine Material Chemicals (DMSO)
Optical Fibers Magnetic Tape Toyo Plastic Seiko Printing Plates TTR Film
* ICC = IC Chip Carrier Tape KCC = ⎡Kapton⎦ Copper Clad TSA = Toray Semiconductor Adhesive 8 Breakdown by Application of IT-related Products
Flat Panel Display (FPD) Materials Other Digital-related Products Material
Circuit Materials (TAB tape) NetNet Sales Sales of of Circuit Materials (FPC Copper (ICC 81%) IT-relatedIT-related Products: Products: clad Laminate Film (KCC)) ¥ 215.0 Billion Circuit Materials (two- ¥ 215.0 Billion (FY Mar/05) Semiconductor-related layers plated materials for COF) (FY Mar/05) Materials (polyimide coating)
PDP Material (paste for rear panel) PET Film 19% (release film, etc.)
LCD Color Filters (specifically medium/small Magnetic Tapes 20%)
Technology Center
Board of Directors Fibers & Textiles Div. Manufacturing Div. Technology Center(directcontrol) Technology R &DDiv. Engineering Manufacturing Development Technology Plastic & Films Div. President Executive Vice Chemicals Div. President Water Treatment Div. Corporate Planning Advanced Composite Materials Div. Dept. ElectronicsElectronics and and Information Information Related Related Products Products Div. Div.
Depts. comprising Pharmaceuticals & Medical Products Div. the IT-related Products Segment Commercialization Amenity Div.
Uniform & Advanced Textiles Div. Advanced Materials Promising Products Affiliated Companies Div. Projects In the Development Stage •Organic EL Materials •High Dielectric material, Hybrid •CMP Pads •Carbon Nano-tube Skin-care Toraysee Dept. •Next generation FPC •Direct Methanol-type Fuel Cell •Flat Panel Display-related films •Organic Semiconductor material Regional Supervisory Organization
IT-SBU (IT-Strategic Business Unit) : Central organization in charge of Toray Group IT-related Businesses 10 Technology Background of IT-related Products
High-performance Films Nano-alloy Film for High-performance Capacitors Polymer Magnetic Film Thinner Layer Processing Data-storage Film Core Adhesion Technologies Circuit Materials ‘KAPTON’, “KCC”, “ICC”, “KCC”,”ICC” Polyimide Flexible Printed Film Circuit Board Semiconductor Polymer Polymer Heat Resistant IC Bonding Polymer Chemistry Design SEMICOFINE*, Equipment TORAYNEECE* Polyimide PHOTONEECE*, Polyimide Material for Photosensitive Semiconductor- Coatings Semiconductor Polyimide related Materials Material Polyimide Materials Insulating Membrane Next Generation Nano- Color Resist dispersion Filter EBR-9* Display-related Organic Fine Photosensitive Electron PDP Materials Chemistry Polymer Synthetic Beam Resist Rear Chemistry Panel Photolitho- graphy Vacuum Color Filters Deposition PDPs
Functional TORELIEF* Organic EL Compound Photosensitive Materials Printing Plate Waterless Printing Materials Waterless Printing Biochemistry CTP Plate Relief/Waterless Plate Printing Plates Information-processing Waterless CTP Technology Printing Plates 11 Correlation Between Toray Products and End Products
Personal Two-layers Plated TAB Tape (ICC) Computers Materials for COF
FPC Copper Clad PET Film Laminate Film (release film, etc.)
Adhesive Tape for PPS Film Semiconductors (TSA) Para-based Aramid Film Semiconductor- Cellular related Materials Phones Engineering Plastics (polyimide coating material) (PPS, LCP, etc.)
PDP Materials PDP Front Panel Film
PDP-related PET Film Materials (reflective film, etc.) Flat TVs LCD Color Filters Toray Engineering Paste for LCD COG bonder Color Filters Slit Coater
TFT Planarizing Material 12 Global Market of Major Products Leading the Electronics Market
PersonalPersonal computers, computers, cellular cellular phon phones,es, FPD-TV FPD-TV are are the the driving driving force force of of the the electroni electronicscs market, market, and and doubledouble growth growth is is still still expected expected in in the the future future 50 Annual Growth Rate 8~12% (2002~2007) Annual Growth Rate 10% (1992~2002)
40
FPD-TV 30 Cellular Phones
Personal Computers
Production Volume (trillion) 20
10
0 year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Toray estimation based on figures of research company 13 1. Business Scale of Electronics & Information Related Businesses
2. Toray’s Business Position in the Electronics & Information Related Industry
3. Strategies for Display Materials
- Display Materials Market
- Business Strategies for LCD-related Materials
- Business Strategies for PDP-related Materials
- Business Strategies for Driver IC Bonding and Circuit Materials
4. Strategies for Circuit-related Materials
5. Strategies for Semiconductor-related Materials
6. Advanced Materials Projects
14 1. Business Scale of Electronics & Information Related Businesses (Net Sales)
ElectronicsElectronics & & Information Information Related Related Busin Businessesesses account account for for 50% 50% of of net net sales sales of of IT- IT- relatedrelated Products Products Segment Segment
215.0 billion yen (consolidated net sales forecast of FY Mar/05)
Others Circuit Materials Copper Clad Laminate Film for FPC Semiconductors, etc. Semiconductors, Printing Materials
Electronics & Resins / Films Information Display Materials Related TAB Tape LCD Color Filters PDP Materials Two-layers plated materials for COF Slit Coater Others
15 2. Toray’s Business Position in the Electronics & Information Related Industry
BusinessBusiness areas areas where where Toray Toray is is focusing focusing on on
Electronics & Information Toray’s Electronic & Information Related Industry Related Businesses
Information Production ⋅⋅⋅ Software Area No entry
Data Processing ⋅⋅⋅ Semiconductors Semiconductor-related Printed Circuit Boards Circuit Board-related
Distributing Information ⋅⋅⋅ Communication-related Optical Fibers area
⋅⋅⋅ Display-related Area Display of Information LCD-related PDP-related ⋅⋅⋅ Recording-media related Printing Material-related Archiving of Information area Document-related area
Development and provision of eco- Shift to an environment-conscious industry friendly material RoHS Directive, Green Procurement Green Procurement / Purchasing 3R (Recycle, Reuse, Reduce) 16 3. Strategies for Display Materials - Market for Display Materials Global Market for Television and Personal Computers
FlatFlat Panel Panel Display Display (FPD) (FPD) is is growing growing dramatically dramatically and and personal personal computers computers areare also also strong strong in in the the global global market market
thousand units World Demand of TV thousand units World Demand of PC 250,000 250,000 Projection TV Note PC PDP 21.3 billion units LCD Desk Top 200,000 200,000 CRT Total PC Market 6% annual growth Shift to FDP 32% Note PC Market 11% annual growth
150,000 150,000
100,000 100,000
50,000 50,000
0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2000 2001 2002 2003 2004 2005 2006 2007 2008 Data Source : Display Search Toray estimation based on figures of research company 17 3. Strategies for Display Materials - Market for Display Materials Performance Comparison by Display Type
ExpandExpand mainly mainly PDP PDP and and LCD LCD in in the the large large FPD FPD area area
Cathode-ray Tube Plasma Liquid Crystal Slim CRT (CRT) (PDP) Display (LCD) Rear Projection
Flat Size (flatter than 100mm)
Large Size (over 37”)
Movie Response Speed
Product Life (lamp life) (over 30,000 hrs.)
Power Saving
Bright Contrast
Dark Contrast
Viewing Angle
High-definition (Full –HD)
Excellent , Good , Insufficient , Difficult to improve , Impracticable 18 3. Strategies for Display Materials - Market for Display Materials Trends in World’s Cellular Phone Market and Color Rate
ColorizationColorization increased increased rapidly rapidly with with th thee expansion expansion of of cellular cellular phone phone demand demand
thousand units 800,000 % : color ratio 95% 700,000 93% 82% 88% 600,000 73%
500,000 52% OLED 400,000 TFT Color STN Color 300,000 STN B/W 200,000
100,000
0 2003 2004 2005 2006 2007 2008
Toray estimation based on figures of research company 19 3. Strategies for Display Materials – Business Strategies for LCD Materials Reengineering of Color Filter Businesses
- Promoting Reengineering Project (S Project) -
Before S Project (~2001) Launch S Project (2002~) Measures / Goals, and Results
Birth of LCD TV, rise of Korea/Taiwan, Struggle to attain income increase in the Large-size Application: m-grade-size glass, large-size market due to cost burden and (note PC, monitor,TV) promotion of self-manufacture of color filters, intense price fluctuation for commodities excess supply, severe price competition Business Environment Shift to medium/small size applications where specifications in with highly functional Medium/Small-size Applications:Sharp growth of cellular phones, technology is possible (cellular phone, digital camera, car navigation system) rapid colorization,high-function ↓ Income Increase
O
z
a
r Accelerated decision-making
g
t Reengineering of Color Filter Businesses Filter of Color Reengineering
i Production/Sales/Technology Production/Sales/Technology a o Æquick response to environmental change
n
n
i Independent Organization Integrated Organization Technology Technology Application/
Strategy Mainly large-size application Shift to Medium/Small Size Applications Toray’s trans-reflective LCD for color cell- (note PC, monitor) Shift to color cell-phones and others where phone applications contributed to the Struggling, not able to exercise the superior performance of polyimide materials establishment of de facto standard superiority of polyimide materials can be applied
E
C
n
g
u
a
W s
g t Mainly Taiwan and domestic PC o Strengthen engagement with major Specifications in for customers from the
i
e
t
m
h
m
e manufacturer medium/small size manufacturers design stage, production of custom products
e
r
n
s
t (Samsung G, TMD, Seiko G. others)
Pr Strive for price maintenance Succeed in restraining price changes by
ic Drastic changes affected by Early achievement of high value-added meeting customers’ specifications e PC market condition products to meet the needs of multi- and producing custom products functionality Manufacturing Promote production efficiency Line Two manufacturing bases: Integrate LM-2 into Shiga LM-3, Æ improve cost competitiveness Seta (LM-2) / Shiga (LM-3-4) Specialize in resin BM Reduce environmental impact by using chrome-free BM 20 3. Strategies for Display Materials – Business Strategies for LCD Materials Cellular Phone Demand and Price Trends in Medium and Small Size LCDs
--ColorizationColorization increased increased ra rapidlypidly with with the the expansion expansion of of cellular cellular phone phone demand demand -- LCD LCD module module price price is is predicted predicted to to drop drop continuously. continuously. Medium/sma Medium/smallll size size applications applications will will shift shift toto high high value-added value-added products products to to meet meet the the multi- multi-functionfunction demand demand for for cellu cellularlar phone phone use, use, which which willwill restrain restrain the the price price drop drop
Thousand units Demand and Color Ratio of Cell-phones Yen Price Trends in LCD Modules 800,000 % : color ratio 95% 400,000 700,000 93% 82% 88% 600,000 73% 350,000 Forecast 52% 500,000 300,000 OLED 400,000 TFTColor 250,000 40"TV STNColor 300,000 STNB/W 200,000 30"TV 200,000 17" 150,000 100,000 2-3" 100,000 0 2003 2004 2005 2006 2007 2008 50,000 Toray estimation based on figures of research company
Definition of LCD Size at Toray: 0 2000 2001 2002 2003 2004 2005 Classification Size Main Applications Medium/Small Below 10” Cellular phones, car navigation systems, PDA, digital cameras Toray estimation based on figures of research company Large Over 11” Note PC’s, monitors, LCD TV’s 21 3. Strategies for Display Materials – Business Strategies for LCD Materials Product Roadmap for Cellular Phones
With advances in transmission methods and the high value-added functionality of cellular phones, devices with high- With advances in transmission methods and the high value-added functionality of cellular phones, devices with high- performance have been developed with the aim of realization a ubiquitous network performance have been developed with the aim of realization a ubiquitous network
~1980 2000 2002 2004 2010~
2.5 Generation 3.5 Generation 1st Generation 2nd Generation 3rd Generation 4th Generation
Voice (conversation) Letters (email) Multifunction Functional Still Image, Melody High-function Moving Picture Evolution of Various Large-volume Data Cellular Phones I-mode Internet Camera, Ringer Melody Delivery, GPS TV Reception Picture Phone Large-capacity Data / Higher Speed / Lower Power Consumption Wireless LAN / Bluetooth / Card Censor
Smaller / Lighter / High Performance Æ High Density Digital Money / RF-ID
Improved Outdoor Visibility, Wide Viewing Angle, High-quality Images, Animation Correspondence
Display Black and White STN Color TFT,TFD Color P-TFT Color P-TFT / OEL (size:inch) (1.9~2.2) (2.2~3.3) (2.2~4.0) Brighter TN mode IPS, MVA mode More Vivid High Resolution Transparent Transparent / Trans-reflective 22 3. Strategies for Display Materials – Business Strategies for LCD Materials Fundamental Technologies of Color Filters Corresponding to the Needs of High Function of Cellular Phones
Toray’s trans-reflective color filter (TAF technology) based on Toray’s composite technologies, Toray’s trans-reflective color filter (TAF technology) based on Toray’s composite technologies, realizes high-quality display images, which are indispensable to the evolution of cellular phones realizes high-quality display images, which are indispensable to the evolution of cellular phones (large-capacity, picture phone, TV reception) (large-capacity, picture phone, TV reception)
Demand High-function Cell-phones Requests for Displays Characteristics for Color Filters
Good Outdoor Visibility Trans-reflective TAF* Technology
High-resolution Purer Spectral Colors Technology Large-capacity High-contrast Color Property Improvement Wide Viewing Angle Technology Launch of TV Reception Multi-function Technology High Resolution
Compatible Environmental Chrome-free Resin BM, High-resolution Camera Sensitivity Other Materials that Reduce Environmental Impact
*TAF Technology : Toray Advanced Color Filter (Trans-reflective Technology) 23 3. Strategies for Display Materials – Business Strategies for LCD Materials Toray Trans-reflective Color Filters (TFA) Applied in Cellular Phones
Toray Light Hole Penetrating Technology High Performance Reflective TAF Outdoor Visibility Trans-reflective Highly Visible Both Indoor and Outdoor Transmissive
Indoor Visibility 24 3. Strategies for Display Materials – Business Strategies for LCD Materials Fundamental Technologies for Medium/Small Size LCD Color Filters Nano-technology TAF High-accuracy and
Homogenization of reflected Toray MOC Technology and transmissive colors Trans-reflective Panels TAF Technology *MOC = Multi Gap On Color Filter
IPS Technology -Effective in polyimide characteristics VA Technology Wide viewing angle -Color property simulation technology of trans-reflective *IPS = In Plane Switching VA = Vertical Alignment panel display Spaceless, compatible narrow High-resolution / High-quality PS Technology cell gap
Black Matrix *PS = Photo Spacer (BM) BM High-definition Pixel Pitch QCIF QVGA VGA Optimum LTPS Resin BM Technology (100dpi class) (200dpi class) (400dpi class) High-degree Photolitho Process BM Line width approx. 20μ approx. 6μ approx. 5μ or less Technology Resin BM reduce environmental impact (qualifications of polyimide materials) 520 0.8 540 NTSC Standard
560 Color Property Toray Color Development Technology 0.6 EBU Standard 500 Improvement (Integrated R&D / Mass Production System) y 580 0.4 600 620 650 770nm - Brighter, more vivid -Color property design technology 0.2 - High-contrast (possess simulation software) 480 470 -Compatible color TV, 450 -Pigment search / selection / nano-technology 0380 0.2 0.4 0.6 0.8 moving images -Pigment dispersion / polymer composite technology x 25 3. Strategies for Display Materials – Business Strategies for LCD Materials Supply Chain of LCD for Color Cellular Phones (include STN)
[Color Filters Manufacturers] [LCD Manufacturers] [Set Maker]
Samsung Group (Samsung Electronics/ Nokia SDI)
Share : 24% Overseas Samsung Seiko Epson (SII/Sanyo Epson) Share : 21% Motorola Toray Share : 24% Toshiba Matsushita Sony Ericsson Display Technology
Share : 12% •••
Sharp Domestic NEC Share : 12% Panasonic
Others Share : 31% SHARP
*Share % is Toray estimation of world share ••• based on research company data 26 3. Strategies for Display Materials – Business Strategies for LCD Materials Fifth Capital Investment of Color Filters (LM-5 Project)
Toray Color Filter Production Line LM-5 LM-4 LM-3
[Existing Line] LM-3 : Size 400mm x 500mm Capacity : 80,000 sheets/month LM-4 : Size 620mm x 750mm Capacity : 60,000 sheets/month
[New[New Line]Line] -- Medium/ Medium/ SmallSmall SizeSize ExclusiveExclusive PlantPlant (for(for high-endhigh-end highhigh value-addedvalue-added products)products) -- LM-5LM-5 :: DivisionalDivisional capacitycapacity increaseincrease inin 33 stagesstages ofof 33rdrd toto 44thth generationgeneration sizesize lineline 11ststStageStage :: SizeSize 550mm550mm xx 670mm670mm ~~ 620mm620mm xx 750mm750mm CapacityCapacity :: 15,00015,000 sheets/month sheets/month (start(start April,05)April,05) 22ndnd Stage:Stage: SizeSize 550mm550mm xx 670mm670mm ~~ 620mm620mm xx 750mm750mm CapacityCapacity :: 15,00015,000 sheets/monthsheets/month (date(date TBA)TBA) 33rdrd StageStage :: TBATBA [Target] 1. To maintain or expand top share in the color cellular phone market (600 million units around 2007, color ratio 90%) 2. Main production line for medium/small size filters is expected to expand to the 3rd ~4th generation from 1st ~2nd. 3. Capacity increase is based on a prediction that substantial shortage will appear mainly in 3rd generation color filters.
Demand-and-supply Balance of 3rd Generation Medium/Small Size TFT Color Filters Demand-and Supply Balance up to 4th Generation Medium/Small Size TFT Color Filters Thousand sheets (size line : 550mm x 670mm) Over-and-shortThousand sheets (size line : 730mm x 920mm) Over-and-short 500 0.0% 3000 0.0% 450 -5.0% 2500 -5.0% 400 -10.0%
350 -15.0% 2000 -10.0% 300 -20.0% 250 -25.0% 1500 -15.0% 200 -30.0% 1000 -20.0% 150 -35.0% Color Filters Color Filters 100 -40.0% TFT Allay 500 TFT Allay -25.0% 50 Over-and short-45.0% Over-and-short 0 -50.0% 0 -30.0%
1Q/04 2Q/04 3Q/04 4Q/04 1Q/05 2Q/05 3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 4Q/06 1Q/04 2Q/04 3Q/04 4Q/04 1Q/05 2Q/05 3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 4Q/06 Latest capacity increase of each LCD and color filter manufacturers included Toray estimation based on research company data 27 3. Strategies for Display Materials – Business Strategies for LCD Materials Market Requirements for Large Size LCD Displays and Toray Strategies
Technology Toray Strategies Application Market Trends Trends Issues Offer Total Solution for Self-manufacturer of In Panels Color Filters LCD TV Tough Competition with Strengthen Cost Increase [Slit Coater] (Large Size) CRT/Rear Competitiveness by Capacity Size (Spinless Coater) Projection/PDP Production (= investment Development/Sales (quality and price Efficiency and Cost increase) of 5th ~8th Generation ~ 50 inch Reduction, others or larger competition) Shorten Tact-time Promotion of Self-manufacturer of LCDs
Respond to Full-HD, Thinner BM Line High-definition [Paste Material] Upgrade of Picture High-contrast Color Purity of Resin BM, Quality Color Paste Wide Viewing Angle Commercialize of High-sensitive/High Color Purity Paste
High-function Paste Materials
28 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Two Business Strategies related to PDP
Joint Venture with Matsushita Electric Expand Strategically in PDP-related Materials Strengthen Cost Competitiveness of Promotion of De Facto PDP Panels and Expand Market Share Standard in PDP Panels Joint Venture Matsushita PDP Co., Ltd. Customers Investment 30 billion yen - PDP Panel Manufacturer Capital Ratio Toray : 25 Matsushita : 75 - Driver IC Manufacturer Established September 2000 - PDP-related Components Manufacturer - Others PDP-Panel Share (2004) PDP-TV Brand Share (2004) Others Matsushita Matsushita 2% 22% 21% Samsung SDI Others 26% 29%
Sony 9%
LG Samsung Pioneer 19% 7% Hitachi 13% 9% Pioneer 8% Philips LG FHP 8% 9% 18% Paste Materials for PDP Rear Panels + Process Technology PDP-related Products - TAB Tape for Driver IC - Photosensitive Barrier Rib Paste - Front Panel Materials - Photosensitive Silver Paste - Front Panel Filter Materials - Derivatives Paste - Rear Panel Radiating Material - Phosphor Paste (under development)
29 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Characteristic Comparison of PDP/ LCD (response speed)
Larger LCD images are more likely to be indistinct affected by difference in response speed. Larger LCD images are more likely to be indistinct affected by difference in response speed.
PDP Comparison with 30” class (2005)
PDP Speed Response
Gradation Viewing Angle
Dark Electricity Contrast
Weight Bright Contrast LCD LCD Brightness
- Upgrades to energy consumption, brightness, and bright contrast of PDPs are underway, by improving the panel structure and drive system.
30 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Characteristic Comparison of PDP/ LCD (reliance on viewing angle)
PDPPDP is is self-luminous, self-luminous, so so the the viewing viewing angle angle is is unrestricted unrestricted
PDP
45 degrees Straight to Front 45 degrees
LCD
31 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Competition in Flat-screen TV Systems
SomeSome view view the the boundary boundary betw betweeneen LCD LCD and and PDP PDP as as t hthee 40 40 in inchch line, line, but but Toray Toray considersconsiders 37 37 inch inch line line as as the the borderlin borderlinee
32 inch and smaller is mainly LCD 37 inch and larger is mainly PDP
Performance Superior in brightness / bright contrast Superior in speed response / viewing angle, brightness is equivalent Energy Consumption Small displays are more low-power and brighter Luminous efficiency improved to level of LCD
Cost Lower costs in multiple panels than PDP Lower cost of circuit rationalization than LCD PDP Main Area 10,000 yen LCD Main Area // 100 PDP Shop PriceofTVSet LCD 10,000yen/inch line
5,000yen/inch line 50
CRT
0 10 20 30 32 37 40 50 60 70 Screen Size (inch) 32 3. Strategies for Display Materials – Business Strategies for PDP-related Materials PDP / LCD Comparison in the 40 inch line and Larger TV Market (units)
Thousand units
15,000 LCD
10,000
77% PDP 82% 5,000 86%
92% 98% 0 2004 2005 2006 2007 2008
Data by Display Research Co. 33 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Financial Efficiency Comparison of PDP and LCD
-- PDP PDP is is more more efficient efficient in in investment investment per per unit unit -- Large Large size size multiple multiple panels panels (over (over 6) 6) is is a a key key point point
(index) Investment Comparison per Unit (comparison in 42 inch line) 200 160 150 135 125 100 100 80
50
0 Co. A Co. B Co. C (2/3 panels) (6 panels) (4 2panels) (4 panels) (8 panels) MPDP PDP LCD Manufacturer Manufacturer
(Calculation based on investment / injection ability from press releases) 34 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Injection Ability Forecast of PDP Panel Manufacturer
MPDPMPDP Co. Co. will will aim aim for for “World “World No.1” No.1” and and build build up up the the largest largest producti productonion capacity capacity at at the the earliestearliest (thousand panels/month) (Data : from press releases) 450 449 Injection Ability ofSubstrates( Matsushita 400 FHP Pioneer/ NEC 350 330 Samsung 308 300 LG 260 CPT 250 250 250 FPDC 212 200 167 150
42inch conversion) 140 150 130 108 112 100 100 82 74 82 60 65 50 70 55
2003 2004 2005 2006 2007 35 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Toray Superiority of Photosensitive Paste Method in Barrier Ribs Formation Technologies
TorayToray photosensitive photosensitive paste paste method method in in barrier barrier ribs ribs formation formation technologies technologies actualizes actualizes high-resolutionhigh-resolution and and high high productivity productivity Process Comparison
Sand Blast Photosensitive Paste Mask Exposure Mask Exposure 1. High Productivity
Photosensitive Glass Paste - Less number of processes (left ) Glass Paste Film Resist - High-speed tact-time possible Development - Easily adaptable to multiple panel production Development 2. Conformity to various shapes Sand Blast Stripe-shape Grid Pattern
Partition of each RGB cell is formed by 120~140 μm high inorganic glass
Resist Removal
Firing 3. Fine Processing Possible Firing High-resolution (including full HD) 36 3. Strategies for Display Materials – Business Strategies for PDP-related Materials High-resolution (including full HD)
Advantages of photosensitive paste method in response to high-resolution Pitch 270 μm(equivalent of 50HD) -Fine processing possible (pitch < 200μm) -Cell opening possible by cut narrowing the line width of barrier ribs
500 42SD
C
e 400 (852 × 480 pixel)
l
l
P
i 37SD
t
c 300
h 42HD Evolution of 50HD Pitch 150 μm(42 Full-HD) 200 High-resolution (1366 × 768 pixel) (µm) 100 42FULL-HD (1920 × 1080 pixel) 0 10 20 30 40 50 60 Panel Size (inch) 37 3. Strategies for Display Materials – Business Strategies for PDP-related Materials Production Capacity Increase Project for Toray PDP Paste Material
ImplementImplement sequential sequential capacity capacity increase increase for for past pastee material material to to suit suit the the MPDP MPDP project project
(tons/month) Production Base : Toray Shiga Plant
200 Capacity increase planned in response to the MPDP 3rd Stage expansion (Amagasaki)
150 MPDP 3rd Stage start (Amagasaki)
100
50
0 2001 2002 2003 2004 2005 2006 2007 2008
38 3. Strategies for Display Materials – Business Strategies for Driver IC Bonding and Circuit Materials Structure of Driver IC Bonding for LCD Displays Gate Side LCD Panel
Source Side
Driver IC Bonding LCD Panel
Print Circuit Board Driver IC Glass Substrate (TFT LCD Panel)
Driver IC 39 3. Strategies for Display Materials – Business Strategies for Driver IC Bonding and Circuit Materials Bonding Technology Roadmap for LCD Display
High-resolutionHigh-resolution and and cost cost reduction reduction Æ Æ IncreaseIncrease number number of of pins, pins, finer finer pitch pitch
High-resolution of Increase of IC Pins LCD Panel Finer Pitch Cost Reduction Downsize of IC 2000 2003 2005 2010
High-resolution 11.52~3 Increase of IC Pins Increase ratio of pins when that of 2003 is assumed as 1
60 ~ 40μm Finer Pitch 30μ 25μ 10μ
Pitch 50μ 40μ 30μ 20μ 10μ Toray Group Mounting Method Technology 35μ TAB Tape TAB Bonding (ICC) COF Bonding 25μ Two-layers plate Plating (Metaloyal*) 20μ COG Bonding Ultra-fine Pattern 10μ Process Technology Next Generation COF (under development) 40 3. Strategies for Display Materials – Business Strategies for Driver IC Bonding and Circuit Materials Market Scale of Driver ICs for Large-size LCDs, by Method
TransferTransfer to to new new bonding bonding method method in in n needeed to to respond respond to to finer finer pitch pitch
[million units/year] Mass production started of products smaller than 25μ , which was conventionally the limit, and the next generation 4,000 ultra-fine patterning forming technology will come to the forefro
COG 3,500 Next Generation Increase of mass production of 3,000 COF products smaller than 40μ pitch (TAB limits) TAB 2,500
2,000 COF suitable for fine pitch circuit structure 1,500 increased with the progression of miniaturization caused by chip shrink
1,000 Conventional mainstream TAB decreased with the limits to respond to 500 miniaturization
0 2002 2003 2004 2005 2006 2007 2008 Toray estimation based on figures of research company 41 3. Strategies for Display Materials – Business Strategies for Driver IC Bonding and Circuit Materials Increase of TAB Bonding Method
TABTAB bonding bonding applications applications shifted shifted from from LCD LCD driver driver to to other other uses uses (PDP(PDP area, area, printers, printers, etc.) etc.)
[million units/year] 1,400 Printers, etc. 1,200 PDP Large LCD 1,000
800 TAB bonding for the LCD area will decrease due to transfer to finer products. 600 Growth in TAB bonding will weaken, but still increase slightly due to expansion into other applications.
400 [Toray Strategy] 1. Maintain dominant share in the large LCD area 2. Expand share in new applications such as PDP, printers, etc. 200
0 2002 2003 2004 2005 2006 2007 2008 Toray estimation based on figures of research company 42 3. Strategies for Display Materials – Business Strategies for Driver IC Bonding and Circuit Materials Expansion of Two-layers Plating Material for COF Bonding (Metaloyal*)
[thousand m2/month]
350
300 Industry Volume 250
200
Future Vision 150
Under Construction 100 Existing Capacity
50
0 2002 2003 2004 2005 2006 2007 2008 43 3. Strategies for Display Materials – Business Strategies for Driver IC Bonding and Circuit Materials Next Generation Technology of COF (development of ultra-fine patterned flexible film circuit manufacturing technology)
-- Start Start : : 2006 2006 -- Market Market Size Size (2008) (2008) : : 10 10 billion billion yen yen LCD / IC Connection Trend in Connection Pitch of LCD Drive ICs Year 2003 2004 2005 2006 2010 Pitch (μm) 35 30 25 20 10 LCDPanel Dimensional Tolerance (%) ± 0.04 ± 0.02 ± 0.01
Conventional COF Newly Developed Pitch Drive IC (COF) Technology Technology Dimensional Stability Limit IC Bump
PI Film Cu line
ExcellentExcellent Properties Properties
♦ Under pitch of 10μ 10μm pitch ♦ Dimensional stability of ±0.001%
TechnicalTechnical Points Points ♦ Adopted semi-additive method, instead of subtractive method, which is useful for fine pitch patterning
♦ Developed an innovative technology for flexible circuit manufacturing which controls dimensional change during patterning process 44 3. Strategies for Display Materials – Business Strategies for Driver IC Bonding and Circuit Materials Business Infrastructure that Utilizes Circuit Bonding Technologies
DevelopmentDevelopment in in various various businesses businesses with with the the value value chain chain of of LCD LCD driver driver IC IC bondingbonding market market
Polyimide Film TAB Tape Patterning Bonding LCD COF Tape Manufacturer Efforts with Samsung Group KOREA TAB Tape Pattern (circuit making) IC Bonding
“KAPTON” Toray Maintain STEMCO STECO ICC High Market • Daejong,Ochang • Chonan (Korea) Share (Korea) • Capital Ratio • Capital Ratio Toray 70% Toray 49% Du Pont- COF Tape SEMCO 30% SEMCO 51% Toray
Toray Advanced Film
Other PI Metaloyal* • Capital Investment Films STECO : Chonan New Plant Start(03) (Copper Plating Method) STEMCO: Ochang New Plant Start (05)
Feedback 45 4. Business Strategy for Circuit-related Materials Global Strategy for Flexible Material Business ••WithWith the the expansion expansion of of demand demand for for FPC FPC to to Asian Asian market, market, demand demand and and supply supply gapsgaps in in every every region region are are expanding expanding nd ••KoreanKorean market market expands expands to to 2 2ndbiggestbiggest market market just just behind behind Japan Japan 1400 TAF Fukushima Plant Unit :1,000m2/Month 1200 Korea Toray 800 Korea Japan 1000 Urayasu 700 China Seoul Toray Shiga Office 600 800 TSI Kumi Plant 500 600 Plant 400 3000 400 300 Japan 200 2500 200 Shanghai 100 0 Demand Supply Demand Supply 2000 2004 2005 0 Demand Supply Demand Supply 2004 2005 Xinzhu 1500 700 Other Asia 600 1000 500 400 350 500 300 300 250 Taiwan 0 200 200 Demand Supply Demand Supply 2004 2005 100 150 0 100 Production Demand Supply Demand Supply Upper: Cover Ray Film 50 site 2004 2005 Lower: Copper Singapore 0 Demand Supply Demand Supply Sales site Laminated Film 2004 2005 Toray estimation from research company data46 4. Business Strategy for Circuit-related Materials Technology trend for FPC applications and Toray’s Strategy [ Transition and Roadmap for Cellular phone ] ∼ 1980 2000 2002 2004 2010 ∼ High 2.5 th Generation performance 1st Generation 2nd Generation 3rd Generation 4th Generation (Communication Multi function Form) Analog Digital Integration (Frequency) 800 MHz (partially 1.5GHz) 2GHz Not yet determined (Communication 9.6 Kbps 144 Kbps 384 Kbps 14.4 Mbps Environmental Speed) responsiveness Voice (Conversation) Letters (Mail), i-mode , Internet etc.
E
S Keep Production in
n
e
v 2-Layers Type n Flame Retardant
i
r s Japan
o
i
t
n i (UL 94 V-0)
v
m Halogen free
i
t
e
y
n Laminating method (2005 on the market)
t Lead free a High Soldering
l
performance Copper Plating Method (Metaloyal*) 47 4. Business Strategy for Circuit-related Materials Placing Laminating method 2-layers type material on the market
ForFor high high performance performance FPC FPC applications, applications, Tor Torayay will will market market lamina laminatingting method method 2-layers 2-layers typetype materials materials
[Adaptation for High Flexibility/Multi Function/Multi Layer] Production Method Laminating Method Production Method Toray Polyimide adhesive varnish (Toray Developed) Dryer Copper foil Copper Laminating Casting Plating Method Method Method Polyimide Film Polyimide adhesive varnish Adhesive Strength (10N≤)(10N≤)(10N≤) Others Polyimide adhesive Core layer varnish Ca Single side CCL Polyimide Varnish
Multi-Layer FPC s t Properties ing Method
Re (Heat resistance) Copper foil Dry Dry Dry Cure pit Polyimide quirements Flexible adhesive varnish Properties Both side CCL Copper foil
Fine Pitch Single side CCL
Dimensional Coppe Polyimide Film
Change Method (± 0.02%) (± 0.02%) (± 0.02%) r P l ati n
Cost g Electrolytic Plating Spattering 48 4. Business Strategy for Circuit-related Materials Toray’s FPC Materials Production Capacity Increase Plan
••CapacityCapacity increase increase in in Japan Japan and and Korea Korea and and transport transport the the products products toto all all Asian Asian countries countries ••ExpansionExpansion in in Korean Korean market market
180 Cover Lay ( Korea ) 160 Cover Lay ( Japan ) 140 3-Layers Copper Clad Laminate Film ( Korea ) Cover Lay Film 120 3-Layers Copper Clad Laminate Film ( Japan )
[10 thousand m2/Month] 100 2 Layers Copper Laminating Film ( Japan ) 80
60 3-Layers Copper Clad 40 Laminate Film
20 2-Layers Copper 0 Laminating Film 2002 2003 2004 2005 2006 2007 2008 49 4. Business Strategy for Circuit-related Materials Business Infrastructure to utilize Flexible Circuit Materials
QuickQuick response response to to expanding expanding Asian Asian Market Market :Expansi :Expansionon from from Japan Japan and and Korea Korea to to All All Asian Asian countries countries
Polyimide Copper Clad Pattern Bonding Set Maker Film Laminate Film Process
Toray ⎡ Collaboration K
A Global strategy as
P
T Head Quarter Share Increase in All Asian O Expansion in Asia and
N Countries
⎦ China High performance FPC Materials (including 2-layers materials) Du pont- Toray Co, Toray Saehan Inc. Ltd. Supply increase in Other Korean Market companies’ PI film (Example of Single side Copper Clad Laminate) Copper Adhesive
Polyimide Film 50 5. Business Strategy for Semiconductor-related Materials Business Strategy for Semiconductor-related Materials
••MarketMarket expansion expansion driven driven by by high high performa performancence of of phot photoseosennssitiitiveve po polyilyimmideide coatings coatings for for semiconductorsemiconductor ••DeveloDevelopmentpment o of fn neeww app applicationlication and and su supplypply of of n neeww materials materials Semiconductor applications Polyimide types Protect Semiconductor •Using photo-resist results in long process time Chip surface Non-photosensitive •Not Suitable for fine processing (minimum 30μm) Polyimide’s Excellence in Semicofine* •Organic Developer→ High Cost Heat resistance, Electric Negative •Enables partially fine processing Insulation, and Mechanical Photosensitive (minimum 10μm) Properties is suitable
Display application Optical Device application (OLED Insulator material) (CCD lens material) Emission Layer Polyimide Insulator Cathode (AI) Optical function + Nano dispersion technology Anode (ITO)
Polyimide Inner Lens Glass Substrate Insulator Material for Planarization Layer TFT Substrate Light receptor 51 5. Business Strategy for Semiconductor-related Materials Semiconductor Market Trend
ExpandExpand investments investments for for large large diameter diameter wafer wafer (300mm), (300mm), fine fine pitch pitch pattern pattern (90nm, (90nm, 65nm) 65nm) →→AimAim sales sales expansion expansion by by res respondingponding to to large large diameter diameter wa waferfer and and fine fine line line width width
FAB. Capacity By Wafer Size FAB. Capacity By Line Width (million m2) (million m2) 10000 10000 500nm> 350nm 9000 300mm 9000 250nm 180nm 200mm 130nm 90nm 8000 8000 65nm 150mm< 7000 7000 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 0 0 20022003200420052006200720082009 2002 2003 2004 2005 2006 2007 2008 2009
Toray estimation from research company data52 5. Business Strategy for Semiconductor-related Materials Semiconductor Technology Trend and Requirements for Polyimide Coatings
ExpandingExpanding mar marketket shar sharee by by seeing seeing beyond beyond to today’sday’s technology technology tren trendsds and and expanding expanding salessales of of “Positive “Positive Photosensitive Photosensitive Polyimide Polyimide Coatings”, Coatings”,whichwhich are are suitable suitable f oforr large large diameterdiameter wafer wafer and and fine fine line line w widthidth Comparison of Polyimide Coatings RequirementsRequirements for for KeyKey Issue Issue Comparison of Polyimide Coatings PolyPolyimideimide Coatings Coatings
Non Negative Positive Photosensitive Photosensitive Photosensitive • Improve wet Large wafer size Improve coating property of wafer surface (Diameter 300mm) consistency Difficult Moderate Easy Semiconductor • Stabilization in drying advanced technology Fine pitch of Wiring rule fine pitch Polyimide pattern Cross linkage trend ~20μm ~10μm ~3μm (90nm,65nm) Improve consistency mechanism of pattern inner
Easy to break Not Easy to Semiconductor re-routing break re-routing Improve pattern package High Density Inter-connect conductive conductive feature by variety technology (IC Package with bumps, Smooth feature layer layer WLP) of photo reaction trend mechanism
Aqueous Organic Aqueous Reduction of Develop Develop Develop Environment impact ment ment ment Other Market Needs Low Cost (photo development cost) Low High Low Short TAT * Long Short Short * TAT:Turn Around Time 53 5. Business Strategy for Semiconductor-related Materials Market Share of Semiconductor Polyimide Coatings by type
PositivePositive type type share share increases increases steadily steadily and and positive positive type type accounts accounts for for half half of of thethe semiconductor semiconductor polyimide polyimide materials materials market market →→TorayToray expands expands market market share share in in positive positive type type polyimide polyimide coatings coatings
Amount base ratio 100% 14% 90% 30% Growth by about 15%/Year 80% 44% 70% 60% Positive 50% Negative Non-photo 40% sensitive 30% 20% 10% 0% 2002 2003 2004 2005 2006 2007 2008 2009 Toray estimation from research company data54 6. Advanced Materials Project New System for Business Creation
••BusinessBusiness development development speed speed priority priority ••FlexibleFlexible infusion infusion of of talent talent ••TechnologyTechnology developm developmentent and and business business cr creationeation by by emphasizi emphasizingng customer customer requests requests ••CollaborationCollaboration between between Technical Technical Ce Centernter and and Business Business Headquarters Headquarters Commercialization Communication withexternalexperts Communication
Advanced Materials Project Technical Full-time Leader Business Clear Responsibility of Business Div.
Center Headquarters
s
Early Judgment of r Technical Headquarters Marketing Headquarters e Commercialization (within 2yrs.)
m
o
5 ∼ 10 Themes t
s
• Production Technology u
C
Development Division Business Model Study
h
• Engineering Division t Commercialization Study i • R&D Division Market Cultivation w
Electric and Imaging Themes (10 ∼ 20 Themes) and Market Creation n
o
i
Materials Research Lab. t
a
r
Specialty Materials o
Research Lab. b
a
l Commercialization Study l New Frontiers Research o
Nomination Themes C Lab. (Many)
•••Capture Potential Market Needs ResearchResearch Theme Theme •••Technical Roadmap Responding to Potential Needs 55 6. Advanced Materials Project Low Molecular Organic EL Materials
• Market in by Red Light Emissive Material with summit-level color purity and high efficiency, and Electron Transport Material • Market in by Red Light Emissive Material with summit-level color purity and high efficiency, and Electron Transport Material with low drive voltage. with low drive voltage. • Under Development of Blue Light Emissive and Phosphorous Light Emissive Materials. Aim for Organic EL material • Under Development of Blue Light Emissive and Phosphorous Light Emissive Materials. Aim for Organic EL material manufacturer. manufacturer. • Market Size (2008) : 10 billion yen • Market Size (2008) : 10 billion yen
Organic EL Structure and Toray-developed Materials Organic EL Structure and Toray-developed Materials ElectronElectron TransportTransport MaterialMaterial :: Electron Cathode − LowLow drivingdriving voltagvoltagee andand highhigh colorcolor Electron transport layer puritypurity 0.5μm + − Emitting layer (host + guest) Hole transport layer RedRed LightLight EmissiveEmissive MaterialsMaterials :: + ITO anode Hole Glass Substrate HighHigh ColorColor Purity,Purity, HighHigh EfficiencyEfficiency andand LongLong LifetimeLifetime Luminescence
PropertiesProperties of of Toray Toray Organic Organic EL EL Materials Materials Red Light Emissive +Electron Transport Material Low Driving Voltage Effect of Electron Transport Material Better Better
8.0 )
2 500
A) Toray (Guest B)
/ Practice Region
d Better
c In Response ( 6.0 400 to Moving Image Toray (Guest A) Toray Electron Company B 300 4.0 Transport Material 200 Commodities Company A 2.0 (Alq) Durability :35,000 hrs or more Brightness (cd/m 100 Luminous Efficiency 0 0 0.60 0.65 024 6810 Color Purity (CIE chromaticity diagram x coordinate) Voltage (V) 56 6. Advanced Materials Project CMP − Chemical Mechanical Polishing − Pad
•Developed•Developed new new CMP CMP Pad Pad which which can can be be a a substitution substitution of of a a monopolistic monopolistic product product •Market•Market Size Size (2008): (2008): 50 50 billion billion yen yen
CMP (core process for semiconductor production) Micro balloon with Micro air Cross-link type CMP nano composite shell Polyurethane bubble Slurry polymer turn Dressing Disk Silicon Wafer Polishing Pad Polishing layer
Non porous Porous polyurethane polyurethane
turn Polishing Desk Cushion layer Current Toray’s New Products Product PropertyProperty ComparisonComparison • High Polishing Speed • Excellent Uniformity 800 • Less Defects Creative Technology 700 Current product • 300mm applicable ♦ Process-adaptability by polishing layer 600 hardness-control ♦ Patent acquired (U.S and Taiwan) 500 Toray-developed Better
Surface asperity (nm) Surface asperity 400 0 100 200 300 Polishing Time (Second) 57 Summary
58 DemandDemand CreatingCreating MarketingMarketing
Information and Communication Field Market Expansion by integration of Digital, Network, and Communication Technology Huge Global Expansion Appearance of BRICs Market Rapid Product Maturization Outlining Change Handling Change
Demand Creating Marketing Exposing Hidden Demand by outstanding advanced technology (Demand Creation by technology push) Strengthening Vertical Integrated Cooperation with upstream and downstream companies (Offer advanced materials to the market by built-in) Acceleration of win-win efforts with most appropriate customers in value chains
Offer continuously high performance materials, technology and know-how to the customers IT-related Products Segment is a driver of “Toray’s Advanced Materials” 59 Strong Collaboration with the Samsung Group (No.1 Businesses in red)
Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Circuit Materials LCD Materials IT-related Products Digital Media
Samsung Electro- Samsung SDI Mechanics Samsung Group Color Filters for Cellar Phones Backlight Plastic Polyimide Coatings FPC Manufacturer Components Color Filters for Cellular Phones Manufacturer TCP / COF Slit Coaters STECO Korea Color Filters Materials Converter Molding Company (JV with Samsung Electronics) Toray Saehan Korea Nylon Resins TAB/COF tapes Copper PET Film Clad Toray Engineering (reflective Film) STEMCO Korea Laminate PPS Resins (JV with Film for Co. Samsung Electronics) FPC Adhesive tape for TAB Two-layers plate materials for COF Toray Group
Electronics & Information LCD Materials Films Division Plastics Division Materials Division Division
Electronics & Information Related Products Division Plastics & Films Division 60 Summary
Accelerating profit expansion by Business expansion Billion ¥ − Operating Profit transition − 140 >120.0 Elimination & Corporate Pharmaceuticals and Medical Products 120 Housing and Engineering Carbon Fiber Composite Materials, etc. >100.0 100 IT-related Products Strategically Plastics and Chemicals Strategically Expanding Fibers and Textiles 80.0 Expanding Businesses 80 Businesses
35.0 60 56.8 51.2 28.5 40 6.8 33.0 17.8 FoundationFoundation 18.8 BusinessBusiness 20 9.3
1.3 0 Mar/01 Mar/02 Mar/03 Mar/04 Mar/05 Early Before 2010 Achievement (Forecast) 61 Descriptions of predicted business results, projections, and business plans contained in this material are based on predictive forecasts of the future business environment made at the present time. The material in this presentation is not a guarantee of the Company’s future business performance.
Toray Industries, Inc. IR Department 2-1, Nihonbashi-Muromachi 2-Chome, Chuo-ku, Tokyo 103-8666, Japan Tel: +81 3 3245-5113 Fax:+81 3 3245-5459 http://www.toray.com
IR Dept. e-mail Address: [email protected] 62