Integrated Report 2019

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31LINTEC INTEGRATED REPORT 2019The semiconductor market has been strong in recent years due to smartphone demand, but the market entered a correction phase from the second half of the fiscal year ended March 31, 2019. LINTEC’s semiconductor-related adhesive tapes and equipment were significantly affected as a result of reduced production and limited capital invest-ment by semiconductor manufacturers. On the other hand, looking at multilayer ceramic capacitor-related tapes, demand was robust and we continued to operate at full capacity. Sales were favorable throughout the year.Semiconductor-related demand is expected to begin to recover from the fourth quarter of the fiscal year ending March 31, 2020, and we expect a return to significant expansion in demand due to such factors as the growth of IoT, the introduction of the 5G next-generation high-speed communications standard, and the electrification of automobiles. In the same way, multilayer ceramic capaci-tor-related tapes are currently facing an inventory adjustment phase, but from a medium- to long-term perspective, our supply capacity is still not adequate. Moving forward, we will continue working to bolster our production capacity. In addition, as one facet of quality control initiatives for semiconductor- and electronic component-related products, we will further strengthen supply chain management and work to establish a higher-level quality assurance system, which is especially needed for products used onboard automobiles.Advanced Materials OperationsBusiness Operations IntroductionIn recent years, these operations have grown significantly. We are building a unique position in the electronics industry with products such as specialized adhesive tapes that are essential in semiconductor chip manufacturing and mounting pro-cesses, and we also make equipment that fully leverage these tapes’ special features. In addition, we produce and sell release films that are crucial in the production of multilayer ceramic capacitors.Takeshi KaiyaExecutive OfficerExecutive General Manager, Advanced Materials Operations,Business Administration Div.604530152016201720182019202052.853.051.643.043.70¥ BillionNet Sales: Advanced Materials OperationsA Message from the Executive General Manager, Advanced Materials OperationsESGStrategyOverviewFinancial Information(Fiscal year ended / ending March 31)(Forecast)