Nikon | Investor Relations | Semiconductor Lithography Business Unit

Semiconductor Lithography Business Unit

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As of September, 2017

We will achieve profitability and establish a clear vision for the future of the business unit.

Toshikazu Umatate

Senior Vice President
General Manager of Semiconductor Lithography Business Unit

Q: How would you summarize the fiscal year ended March 31, 2017?

Our most significant initiative during the fiscal year ended March 31, 2017, was the restructuring that kicked off in November 2016. We began this restructuring with fixed cost reduction by headcount rationalization such as solicitation for voluntary retirement and reassigning employees. These efforts proceeded as planned. It saddens me greatly to see so many comrades leave the Company, and my responsibility for causing this situation weighs heavily on my shoulders. This regrettable experience is fueling my passion to ensure that the Semiconductor Lithography Business Unit can be rebuilt successfully.

One of our tasks as part of the restructuring is to reassess our sales approach. We had actually begun this process a year before the restructuring started. Our new approach will entail a focus on business opportunities and products that guarantee profits, even if sales volumes decrease, and will represent a departure from an approach targeting growth in sales volumes and amounts. We thus initiated negotiations with customers, taking the time required to effectively explain the situation so that we could continue business under different conditions. Having earned customers’ understanding, we are now poised to advance a stable investment plan and narrow the focus of our development activities. We will continue to reassess our sales approach as necessary going forward.

In addition, the cost reductions we have been pursuing over the past several years have begun producing results, and I feel confident saying that progress has been made in building a structure for generating consistent earnings.

Q: What initiatives will be implemented by the Semiconductor Lithography Business Unit going forward?

The Companywide restructuring currently underway represents a priority measure for the Semiconductor Lithography Business. As such, our first goal will be to make progress in the restructuring in order to ensure that profitability is achieved in the fiscal year ending March 31, 2018, and then to establish a stable revenue base during the restructuring period, which will conclude in the fiscal year ending March 31, 2019. Finally, we will set clear business policies to be implemented after the restructuring period.

We also plan to establish a new technical support base on the east coast of the United States, adding to the existing bases in Japan. This move will enable us to take advantage of the time difference to offer swift responses to technical issues and provide technical support on a worldwide basis.

Furthermore, there is great potential for the cutting-edge technologies accumulated by the Semiconductor Lithography Business Unit to be utilized in other businesses. In fact, we have already begun examining methods of applying our optical technologies to other businesses together with the Optical Engineering Division that was established in April 2017. We plan to propose technologies that can be used in this manner.

As such, our focuses going forward will be to achieve profitability by steadily advancing measures of the restructuring and to expand into other business areas by utilizing the various cuttingedge technologies through semiconductor lithography system development. In this manner, the Semiconductor Lithography Business Unit will advance a united effort to create new value.

Main products

Semiconductor lithography systems