Precision Equipment Company
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As of November 29, 2012
Overview
Main Products
IC steppers and scanners, LCD steppers and scanners
Consolidated Financial Results
Market Environment and Business Trends
Capital investment by manufacturers cooled off, and both the semiconductor-related and LCD panel-related markets shrank. Looking forward, challenging conditions are expected in the Precision Equipment Business, particularly in the semiconductor-related field, due to growing uncertainty toward market conditions and apparent declines in capital investment. We will work on improving our earnings structure to overcome the downturn in the market conditions.
See Financial and Business Data for the First Half ended September 30, 2012 (November 1, 2012)
Sales and Forecast Units of Nikon Steppers & Scanners
- IC Steppers & Scanners by technology
- LCD Steppers & Scanners by Generation
PDF File (PDF:88KB)
An Interview with the Company President
Kazuo Ushida
Director, Member of the Board & Senior Executive Officer, President of Precision Equipment Company
- Q1:What were the business results and principal activities in the Precision Equipment Company for the first half of the year ending March 2013?
In the Precision Equipment market, capital investment by manufacturers cooled off in both the semiconductor-related and LCD panel-related fields, and a tough business climate was observed, particularly for markets related to semiconductors. In these circumstances, we worked to expand sales in the field of IC steppers and scanners, focusing on the NSR-S620D ArF immersion scanner compatible with double patterning and on the latest model NSR-S621D with enhanced accuracy and throughput.
In the LCD steppers and scanners field, we worked to expand sales of devices that are optimal for high-resolution small and medium-sized panel, focusing on the FX-66S with enhanced throughput and resolution compared to its previous generation. Ongoing efforts were also made to improve our profit structure by shortening production lead times and reducing costs throughout operations. However, the Precision Equipment Business was impacted by a downturn in the market. As a result, net sales decreased by 35.6% year on year to 80,429 million yen, and operating income decreased by 69.0% year on year to 7,212 million yen.
- Q2:What is the market outlook for IC steppers and scanners, and Nikon's plan for initiatives to expand market share?
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A2:
Due to the rapid downturn in capital investment into IC equipment following this summer, market size for IC steppers and scanners for 2012 (calendar year) has been adjusted downward from our initial outlook of approximately 240 units to 230 units. Investment schedules of IC manufacturers will remain tight into next year and we are predicting a reduction of slightly over 10% in the equipment market in comparison with 2012. Despite the current difficult market environment, Nikon plans to secure earnings by enhancing the competitiveness of its products, and expanding its market share.
One of the products that will be key to greater market share is the new NSR-S621D ArF immersion scanner, which we began shipping in January 2012. This new model retains the proven platform of the NSR-S620D, while offering advancements in overlay accuracy and throughput. The reaction from customers has been positive, and we expect full-fledged introduction at customer plants from the second half of the fiscal year ending March 2013. Drawing on this competitiveness, we aim to achieve a 40% share of the market for ArF immersion scanners by the fiscal year ending March 2015.
Another product underpinning our push to increase market share is the new NSR-S320F ArF scanner announced in December 2011. This new model utilizes a common platform with the NSR-S621D, and offers overlay accuracy and throughput comparable to that of an immersion scanner. We believe this scanner will allow us to respond to new customer needs.
- Q3:What is the market outlook for LCD steppers and scanners, and Nikon's plan for future measures?
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A3:
We have not changed our outlook of approximately 60 units for 2012 for the LCD steppers and scanners market and judging from the recent, high number of orders for equipment for the production of mid-sized and smaller panels, we expect a notable recovery in the market early in 2013. As a result, we predict an increase of close to 20% in market size compared to this year for the full year. We are also now receiving new inquiries regarding equipment for the production of large LCD panels and we hope that the orders will recover for the next period as a result of these inquiries.
Nikon already has an extremely large share of the market for LCD steppers and scanners, owing to such advanced technologies as multi-lens arrays that easily can be adapted to larger and more precise glass plates. In February 2012, five Nikon employees involved with the development of this technology were awarded the Prime Minister's Prize at the fourth Monozukuri Nippon Grand Awards. We will continue to refine these strengths in an effort to respond to customer needs.
- Q4:What is the direction for technical development in the Precision Equipment Company?
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A4:
The Precision Equipment Company is developing new technologies with an eye to the future. The three keywords for this technology development are "Larger," "Finer" and "Taller."
"Larger" refers to the realization of technologies for wafer sizes up to 450 mm, and extremely large LCD panels. "Finer" refers to such aspects as greater overlay accuracy and ultra-thin line widths in lithography equipment. "Taller" indicates the development of three-dimensional technologies by stacking semiconductors.
We are exploring several fields with the goal of expanding into new business domains by effectively utilizing the advanced technologies employed in IC and LCD steppers and scanners. Through these efforts, we intend to strengthen our business foundation.
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