Integrated Report 2020

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A Message from the Executive General Manager, Advanced Materials OperationsStrategy30LINTEC Integrated Report 2020Business Operations IntroductionIn recent years, these operations have grown significantly. We are building a unique position in the electronics industry, which is expected to continue to record substantial growth. Our products include specialized adhesive tapes that play an important role in semiconductor manufacturing and mounting processes, 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.604530152021201720182019202052.5047.752.351.643.0¥ BillionNet Sales: Advanced Materials Operations(Fiscal years ended / ending March 31)(Forecast)Business StrategyAdvanced Materials OperationsIn the fiscal year under review, our operations were signifi-cantly affected by changes in the market environment. In semiconductor-related business, market conditions worsened dramatically and became sluggish from fall 2018. These circumstances continued in the first half of the fiscal year under review, and our operating environment was challeng-ing. However, in the third quarter and thereafter, market conditions improved, principally for communications devices for smartphones, memory for data centers, etc., and our results were favorable, centered on related adhesive tapes. In addition, looking at multilayer ceramic capacitor-related tapes, U.S.-China trade friction began to have a significant effect from around June 2019, and our sales were sluggish. However, there has been an underlying recovery trend in demand from the third quarter, centered on high-end applica-tions. Moving forward, as progress is seen with the full-scale introduction of the 5G high-speed communications standard, the electrification of automobiles, etc., we expect electronics-related markets to continue to expand.In semiconductor-related areas, the LINTEC Group has a variety of products with high shares, such as flip chip backside coating tapes. To maintain our current high-earnings struc-ture in 5 years or 10 years, we must develop products that are unique or are number one in their categories. Also, with a focus on the future, we are searching for an entry into entirely new fields that are not extensions of our current semiconduc-tor-related or electronics component-related businesses. For example, these new areas include the energy, environmental, and medical-related fields. Furthermore, we will also advance initiatives toward the acquisition of IATF 16949, a quality management standard that is requested by mainstay automo-tive parts manufacturers in Europe and the U.S.Kinya MochidaSenior Executive OfficerDeputy Executive General Manager, Business Administration Div. and Executive General Manager, Advanced Materials Operations