and the number of major themes completed hit a record high, allowing us to see tangible improvements in development speed. In the fiscal year ending March 31, 2026, we will continue to steadily implement measures aimed at developing new products and technologies that solve societal and customer issues while further strengthening our manufacturing capabilities. Looking ahead to the final year of our long-term vision, the fiscal year ending March 31, 2030, our division sees its role as creating not just new products but also highly profitable hit products across emerging, growth, and mature business fields. To achieve this, we will focus on strengthening our core competencies in materials development, analytical technologies, process development, and the expansion of technological domains. By broadening and deepening our upstream and downstream technical knowledge, we aim to develop one-of-a-kind, market- leading products that offer unrivaled competitive advantages. R&D SystemThe Research Center (Saitama Prefecture) of the Research & Development Division is the core base for the Group’s R&D activities. The center has high-precision testing and analysis equipment and a clean room, as well as the same equipment that is used by customers in semiconductor-related fields. Moreover, we have installed large-scale pilot coaters that closely resemble mass-production facilities at plants, building systems for a smooth flow from R&D to mass production. The center includes the Product Research Department, which develops products directly connected to our current business, and the New Materials Research Department, which conducts R&D with a focus on the future. In addition, in April 2022 we established the Unexplored Technology Research Department and the Innovation Promotion Department. About 200 researchers are engaged in research on these themes.R&D with market dialogue-driven styleProduct Research Dept.Unexplored Technology Research Dept.Study and R&D of new materials and technologiesInnovation Promotion DepartmentOptimization of overall R&D activities and creation of mechanisms for new business creationIndustry–government–academia cooperationDevelopment of leading-edge materialsNano-Science & Technology Center (U.S.)30StrategiesStrategies for Strengthening Our CapitalsUnder LSV 2030-Stage 2, our division is pursuing the following key initiatives: the development of new products and technologies that anticipate market trends and address customer and societal issues, productivity improvements through the adoption of digital transformation (DX) and artificial intelligence (AI), and innovation challenges. In the fiscal year ended March 31, 2025, we accelerated the establishment of a mass production system for carbon nanotube (CNT) pellicles for extreme ultraviolet (EUV) lithography equipment using a film deposition system developed in-house. Our barrier film reached the final evaluation stage for electronic paper applications and is now also being evaluated by customers for use in next- generation perovskite solar cells. Across the board, each initiative made significant progress. In addition, we completed infrastructure development for DX-related tools such as AI and machine learning. As a result, 40% of all R&D themes during the year involved the utilization of DX, R&DA Message from the Executive General ManagerMarketsR&D with insight into the futureResearch CenterNew Materials Research Dept.Open innovation through external collaborationExpanding and Enhancing Our Technical Expertise to Create Highly Profitable Hit ProductsYoshihisa MineuraManaging Executive Officer Executive General Manager, Research & Development Div.R&D and Intellectual Property Strategy
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