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IC steppers and scanners, LCD steppers and scanners
Net Sales
Operating Income
In IC steppers and scanners, demand for immersion scanners is expected to continue to rise as device manufacturers expand investment with the upturn in the semiconductor market. In LCD steppers and scanners, steady recovery is expected as LCD panel manufacturers enhance their operating rates. In particular, we anticipate full-fledged investment in large panels in China.
Ratio of Sales of Nikon IC Steppers and Scanner by Light Source
Global Market Share of Nikon IC Steppers and Scanners
Sales and Forecast Units of Nikon Steppers & Scanners
Kazuo Ushida
Director, Member of the Board & Senior Executive Officer, President of Precision Equipment Company
| Q1: | What were the business results and principal activities in the Precision Equipment Company during the fiscal year ended March 2010? |
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| A1: | During the fiscal year ended March 2010, although signs of recovery started to become visible in the second half, unit sales of IC and LCD steppers and scanners dropped sharply, as both of these markets contracted by nearly 50% during the economic slump caused by the financial crisis. As a result, segment sales fell 31.7% from the previous fiscal year to ¥150,101 million. Owing to reduced sales and additional write-down of inventories, the segment posted an operating loss of ¥58,557 million compared with operating income of ¥8,041 million in the previous fiscal year. |
| In IC steppers and scanners, Nikon was forced to record a large additional write-down of inventories owing to a sharp market contraction and an earlier-than-expected shift in demand to high-performance equipment. As the market turned toward recovery in the second half, we began scheduled shipments in the third quarter of cutting-edge ArF immersion scanners for double patterning* that will allow for mass production of semiconductors at 32 nm and beyond. In LCD steppers and scanners, efforts were made to expand sales of the FX-101S scanner, which is compatible with 10th generation large glass plates, and of steppers suitable for the manufacture of the small to medium-sized high-precision liquid crystal displays used in cell phones and automotive electronic devices. In the Chinese market, we received a major order for LCD scanners for 8th generation glass plates. The Precision Equipment Company also actively pursued structural reforms and measures to reinforce cost-competitiveness throughout the business, reorganized and consolidated four domestic manufacturing subsidiaries into two, and implemented rationalization measures at service subsidiaries and overseas marketing operations. Note: * Double patterning is a lithography technique in which a single, dense circuit pattern is split into two coarser patterns that can be exposed separately. The two patterns can then be overlaid on the wafer, providing a final, dense circuit pattern. |
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| Q2: | What are the strengths and sales prospects for the cutting-edge NSR-S620D ArF immersion scanner? |
| A2: | While the demand for semiconductor devices is expected to remain firm, customers are seeking further device shrinkage of semiconductors and higher throughput. To respond to these demands, Nikon devoted its efforts to development of the NSR-S620D ArF immersion scanner for double patterning. In developing the NSR-S620D, we set extremely demanding performance targets, calling for a throughput of 200 wafers per hour and an overlay accuracy of 2 nm. The NSR-S620D also incorporates a complete modular construction based on the most recent design concepts. This facilitates testing at the module level, as well as easy upgrades at customer sites, and maximizes the overall precision. Customers will be able to just change the necessary modules, rather than purchase entirely new equipment, when responding to further device shrinkage. A new building for the production of the NSR-S620D has been operating at the Kumagaya Plant since April 2010. For precise module-level manufacturing and testing, the new building features a higher level of cleanliness as well as the latest technologies to counter minute floor vibrations. ArF immersion scanners hold the key to earnings amid the recovery of the semiconductor market. The scale of the ArF immersion scanner market is expected to be on the order of 100 units per year from the fiscal year ending March 2011 through the fiscal year ending March 2013. Nikon plans to steadily increase its share of the ArF immersion scanner market, centering on the NSR-S620D. |
| Q3: | What is your forecast for the LCD steppers and scanners market, and Nikon's competitive advantage? |
| A3: | As sales of large-screen LCD televisions remain favorable, the demand for LCD steppers and scanners is projected to hold firm from the fiscal year ending March 2011 through the first half of the fiscal year ending March 2012, centered on models for 8th generation glass plates. In addition, the trend to higher TV image quality and the spread of 3D television are expected to accelerate the move toward higher-performance, larger-screen LCD televisions, as well as the shift to 10th generation and then 11th generation glass plates. Nikon's multi-lens projection optical system is the greatest strength of our LCD scanners in responding to this shift toward higher-performance, larger-screen LCD televisions. The advantage of this multi-lens method is that we can respond easily to the increased size of glass plates for efficient manufacturing of large-scale LCD panels with each new generation, without affecting the resolution, by raising the number of projection lenses. Accordingly, we view the trend toward higher-performance and larger-screen LCD televisions as a favorable development, giving greater momentum to Nikon. In January 2010, we received a large LCD scanner order for what will be the first 8th generation glass plate LCD panel manufacturing line in China. This was a major step toward expanding sales in China, where the market is projected to grow in the future. We expect the market for LCD steppers and scanners to be around 110 units in the fiscal year ending March 2011, and then remain around 80 to 100 units per year for the next few years. The Precision Equipment Company will continue striving to maintain its high market share. |
| Q4: | What measures are you taking to restore profitability in the fiscal year ending March 2011? |
| A4: | Our plan calls for a recovery from the operating loss of ¥58,557 million in the fiscal year ended March 2010 to a profit in the fiscal year ending March 2011, followed by an increase to proper profit levels in the next year. We think we can achieve this goal by further promoting sales of our cutting-edge ArF immersion scanner for double patterning as well as our LCD steppers and scanners, where Nikon has an advantage in both small to mid-sized and large-scale liquid crystal displays. The Precision Equipment Company is developing businesses on the front lines of our core opto-electronics and precision technologies. We will continue to take pride in driving this business forward. |
