Nitto Denko Group Report 2013

34Nitto Denko Group Report 2013Business ActivitiesOptronics BusinessOur information ne materials, such as LCD-related products, were strong, in line with rm demand for televisions and the continuous expansion of the market for smartphones and tablet PCs. Our transparent conductive lm used on touch panels installed on smartphones and tablet PCs remained strong, not only because of expansion in the market, but also because of our differentiation strategy in quality and technological capabilities.In our semiconductor materials, we assigned our semiconductor encapsulating materials business, excluding that part for optical semiconductors, to Hitachi Chemical Co., Ltd. on October 1, 2012, resulting in a drop in sales.Demand for our printed circuit boards recovered from the impact of the Thailand oods at the beginning of the scal year. However, the recovery in the market for hard disc drives was slow, in line with the decline in demand for PCs. As a result, sales were weak.In electronic processing materials, as declining investment in plant and equipment in the semiconductor industry continues, demand for carton sealers was weak. On the other hand, tapes for the production of semiconductors used in smartphones and tablet PCs were strong. Overall, sales were strong.Recently, LED lights have been attracting attention as products contributing to energy conservation, becoming immensely popular. As LED elements emit blue light, they are encapsulated by compounding liquid resin with uorescent substances (yellow, red and green) to emit white light. In such a process, there exists the problem of color variation.Nitto Denko has newly developed a thermosetting thermal resistant encapsulation sheet for LEDs containing uorescent substances. The sheet does not cause any damage to LED bonding wires when laminated onto LED devices, because of its gel-like, semi-hard properties, resulting in simplication of the whole encapsulation process. Furthermore, the sheet demonstrates uniformity of thickness. In addition, controlling the placement of uorescent substances lessens color variation. Through these properties, we have realized high quality, high reliability and high productivity.We began sales of the sheet in January 2013.New Development and Release of Thermosetting Thermal Resistant Encapsulation Sheet for LEDsFiscal 2011Fiscal 2012Year-on-year comparisonSales Information fine materials291,699348,708 119.5%Semiconductor materials11,7208,335 71.1%Printed circuit boards43,85541,323 94.2%Processing materials11,83012,357 104.5%Total359,105410,725 114.4%Operating incomeTotal42,16256,593 134.2%Yen in millionsNewly developed thermosetting thermal resistant encapsulation sheet for LEDs LEDs bonded with our sheet light upLEDs bonded with a thermally-hardened sheet of uniform thickness, which protects the LEDs20112012050,000100,000150,000200,000250,000300,000350,000400,000450,000■ Sales of processing materials■ Sales of printed circuit boards■ Sales of semiconductor materials■ Sales of information ne materials■ Operating income291,699Total: 359,10542,16256,59311,72043,85511,830348,708Total: 410,7258,33541,32312,357(FY)(Millions of yen)