EUV pellicleAim of Developing Elemental Technology Used in CNT Pellicles for EUV Lithography EquipmentNew coaters installed at the Agatsuma PlantNew building for multilayer ceramic capacitor-related tape at the Kumagaya PlantEUV photomaskReflectorEUV light sourceWafer26Growth Field 2In our semiconductor-related business, which we position as a growth area, we are currently advancing a project aimed at expanding our business domain. This involves establishing a mass production framework for the carbon nanotube (CNT) pellicles used in extreme ultraviolet (EUV) lithography equipment. Pellicles serve as a dust-proof film that prevents foreign matter from adhering to a photomask (the original plate of a circuit pattern). Traditionally, products based on polysilicon and other materials have been used for this purpose, but in recent years the call for highly durable and reliable pellicles made from CNTs has grown in line with improvements in the performance of EUV lithography equipment, which is essential for semiconductor miniaturization. After developing the necessary elemental technologies, the LINTEC Group leveraged its expertise in designing and developing semiconductor manufacturing equipment to successfully build a proprietary mass-production system. In September 2024, we announced that mass production was now in sight based on the results of joint research with the National Institute of Advanced Industrial Science and Technology. We are currently providing samples to customers and undergoing evaluations, and we remain on schedule to establish mass production during the fiscal year ending March 31, 2026. Unlike the tape materials we have developed to date, which are used in the back-end process of semiconductor manufacturing, pellicles are used in the front-end process. While this initiative represents a foray into an entirely new domain for us and undoubtedly comes with many challenges to overcome, we are bringing together expertise and technologies from inside and outside the Company in our effort to strengthen and expand our semiconductor-related business.As noted on page 24, although demand in the global semiconductor market continues to show a patchwork of contrasting trends depending on the application, stable growth is forecast, with advanced products for generative AI leading the way. With an eye on the medium- to long-term expansion of the semiconductor market, we are thoroughly allocating management resources. At the Agatsuma Plant in Gunma Prefecture, our core production site for semiconductor-related products, we have invested approximately ¥4.5 billion to introduce state-of-the-art clean coating equipment, cutting equipment, and automated storage racks. These upgrades have enhanced the precision of tape thickness and reinforced our stable supply framework. With significantly improved production capacity, we are now better positioned to stably supply various tapes during times of increased production by semiconductor manufacturers, thereby minimizing the risk of missed sales opportunities. Beyond the semiconductor domain, we have also significantly expanded production facilities for multilayer ceramic capacitor-related tape at the Doi Plant in Ehime Prefecture and the Kumagaya Plant in Saitama Prefecture. Over the four years leading up to the year ended March 31, 2025, we invested a total of approximately ¥20 billion. These capital investments have been made to boost production capacity in anticipation of future demand growth. tapes, equipment, and proprietary processes related to packaging technologies in the back-end processes for advanced semiconductors. Even when groundbreaking products are successfully developed, the semiconductor industry is not one where such innovations are adopted immediately. This is because manufacturers are often reluctant to change established semiconductor production processes due to concerns such as reduced yield rates. For this reason, we actively engage in close communication with customers and hold discussions with relevant institutions and industry organizations with the aim of establishing de facto standards for the world five to six years from now.In R&D, we are focusing our efforts on key themes such as the development of new Semiconductor-Related BusinessAnticipation of Growth in the Electronics-Related MarketInside an EUV lithography system
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