demand trends and execute appropriate investment plans. In addition to investing in production facilities, we will continue to invest actively in R&D that allows us to propose new processes and respond to new technologies, which we believe will lead to significant growth for the Group.LINTEC’s electronics-related products, support-ing the increasing sophistication of a variety of electronic devicesExisting Agatsuma Plant building where new equipment will be installed18A Message from the PresidentMedium- to Long-Term Focus MeasuresReinforcing Electronics-Related ProductsIn recent years, the Group’s performance has been driven by demand in Advanced Materials Operations for electronics-related products such as semiconductor-related adhesive tape and equipment and ceramic capacitor-related tape. We expect demand to continue increasing in the current fiscal year, but lockdowns at large cities in China, which serves as a global manufacturing and logistics hub, have negatively affected the demand for and supply of automobiles, consumer electronics, and other items. Given society’s ongoing digitalization, evinced by the proliferation of data centers and artificial intelligence (AI), as well as advances in self-driving car technology, we believe these production adjustments will be temporary. We are convinced that demand for electronics-related products will grow steadily over the medium to long term. The LINTEC Group needs to remain a step ahead by preparing for this expected growth in demand. We need to forecast market PICK UPAugmenting Three Plants for Electronics-Related Products with New Equipment and FacilitiesWe have been responding to recent increases in demand for electronic components by aggressively ramping up our investment in the production of electronics-related products. We are spending a total of nearly ¥20.0 billion to construct new buildings and install new equipment at the Doi Plant (Ehime Prefecture) and the Kumagaya Plant (Saitama Prefecture), which produce multilayer ceramic capacitor-related tape. Construction, which is slated for completion in March 2025, will gradu-ally bring online a total of four coating machines. We are also investing around ¥4.5 billion at the Agatsuma Plant (Gunma Prefecture), our core production base for semiconductor-related adhesive tape. This spending is going toward the installation of a state-of-the-art adhesive coater, which should be in place by the end of 2023. In semiconductor- and electronic component-related markets, which are expected to grow over the medium to long term, we will continue striving to maintain stable supplies of high-quality products.
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