continuously working to optimize our R&D activities. In the area of semiconductor-related products, a key growth field characterized by rapid shifts in technological trends, we have built a robust framework that allows us to engage in direct conversations with customers, accurately identify their needs, and propose new 2 New Discoveries Through Intercompany CollaborationIn a world characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), the needs of society and customers are becoming increasingly diverse. As a result, co-creation with external partners, rather than relying solely on in-house capabilities, is gaining importance. In addition to our traditional collaborations with universities and research institutions, we have recently intensified our focus on strengthening partner-ships with other companies. One example is our participation in the incubation center ARCH, a facility dedicated to the creation of new businesses. Companies from a wide range of industries that share this mission participate as members. Through dialogue with these member companies, we are exploring potential co-creation themes and have found that LINTEC’s accumulated products and technologies may offer solutions for entirely new applications and fields. While ARCH is primarily composed of large corporations, we are 3 Refinement of Market-Engaged R&DThe ultimate goal of these initiatives is to strengthen existing businesses and create new ones through the development of new products and technologies; however, they also play an important role in talent development. A defining characteristic of our R&D framework is its market-engaged approach, where researchers visit customers alongside sales staff to gain a precise understanding of their needs using their unique perspectives and information-gathering skills. In recent years, we have shifted from simply responding to concerns to identifying and materializing latent needs—those Building a Foundation for Continuous Innovation1 RIC: Our Unique Innovation InitiativeAs part of our efforts to continuously create new technologies and businesses, we have introduced a unique initiative called RIC (R&D Innovation Challenge). RIC is a research-driven program that aims to generate new value by incorporating novel technologies and ideas, ultimately leading to significant societal and corporate transformation. Under this initiative, researchers are encouraged to pursue innovative activities, such as developing new products or improving R&D efficiency, based on their own ideas. They may devote up to 30% of their working hours to these activities. Launched in 2022, RIC has already begun producing tangible results, including technologies that have received awards at international conferences and the development and implementation of systems that help boost productivity.To remain a leading player in the industry, we are technologies at the optimal time. As part of these efforts, we have increased the number of researchers stationed at overseas sales bases and strengthened collaboration with domestic researchers, enabling us to continue developing materials that enhance the productivity and reliability of increasingly miniaturized semiconductor devices.also involved in other collaborative spaces where venture and start-up companies gather. In this way, we are actively seeking out ideas for new businesses from every possible angle.customers themselves may not yet recognize—by developing a deep understanding of their products, applications, and manufacturing processes. Through initiatives such as RIC, which fosters zero-to-one product development unconstrained by assigned themes, and our participation in ARCH, which provides exposure to other companies’ technological mindsets, we are continuing to evolve our market-engaged R&D. These efforts are helping our researchers hone their ability to deliver products and services that exceed customer expectations.31
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