R&D Activities and Intellectual PropertyR&D AchievementsIn the scal year under review, R&D expenses incurred by the Group amounted to ¥7.6 billion. The following is an overview of the principal R&D activities conducted by each operational segment.Printing and Industrial Materials ProductsPrinting and Variable Information MaterialsLINTEC succeeded in developing revolutionary bubble-free labelstock that utilizes a proprietary manufacturing method to prevent air from becoming trapped beneath labels. This labelstock is certied under the product safety standards of Underwriters Laboratories, Inc., and can be used for applications such as in the name and display labels attached to consumer electronics and electronic devices.In addition, LINTEC has created a new organic–inorganic hybrid coating by combining its original technologies with the fundamental technologies of a public research institution. This coating is highly effective in repelling water and oil, allowing for easy water and oil runoff even when the coated surface is only slightly slanted. Much praise from customers has been gathered for this treatment after it was exhibited at Labelexpo Europe 2015, presented at a technical conference, and introduced in a technical magazine. We are continuing to seek out new applications for this coating.Through these and other R&D activities, this segment incurred R&D expenses of ¥2.4 billion.Electronic and Optical ProductsSemiconductor-Related MaterialsLINTEC is pushing forward with its DBG+LE system, a fusion of our dicing before grinding (DBG) system, which allows for the creation of thinner large-scale integration (LSI) chips, and our LE tape, which functions as both dicing and die bonding tape. This has resulted in the realization of multilayer LSI chips. LINTEC is contributing to increased density of LSI packaging through measures such as the integration of this technology in solid state drives (SDDs), which represent an alternative to conventional hard disk drives (HDDs).Optical Functional MaterialsWe are continually engaged in the development of adhesives, such as those for optically clear adhesive sheets for use in polarizing lms and touch screens and anti-shatter lms. In addition, LINTEC is advancing development of a high-barrier lm for use in exible OLED displays to protect the organic materials, which are weak to water and oxygen. We are aggres-sively pushing forward with sample work activities to obtain material certication for this lm from manufacturers. This lm has already gained a positive reputation among several manufacturers, due in part to demand for its use in e-book display devices and printed electronics. We will continue working to acquire new customers for this product going forward.As a technology-centered company, we realize that strengthening R&D capabilities is one of our most important management strategies for achieving sustainable growth. Two approaches help us to create both products that resolve our customers’ technological issues and products that are unprecedented, innovative, and lead the market: the developing of functional materials and related processing technologies that leverage our proprietary technological capabilities and a market-dialogue style of research that emphasizes user needs. Going forward, we will further strengthen our R&D systems to accelerate the speed of product development and create new technologies.Revolutionary bubble-free labelstock allowing for easy release of trapped air:: THE BASE THAT SUPPORTS GROWTHLINTEC ANNUAL REPORT 201626


page 28