FY2010 Financial Announcement meeting Q&A
For the April-June period, total orders are expected to reach around 150 billion yen, with 130 billion yen for SPE and 20 billion yen for FPD/PV production equipment.
Orders for the July-September period will likely reach the same level.
The level of capital investment is high in DRAM and NAND flash memory and will also remain high in foundries and MPU.
It is true that coaters/developers are more profitable than etch systems, but the profitability of etch systems is significant nonetheless. We are aiming to make further improvements in profitability through operations at our new Miyagi plant, as well as market share increases, etc.
Currently, we conduct development work in Yamanashi and production in Matsushima, but the new Miyagi plant will integrate the entire process from development to mass production. We will improve profitability by maximizing production efficiency and shortening the delivery time through strengthening our supply chain.
Our company's share of the dry etch system market has not changed over the past year. We have been engaged in customer evaluation work targeted our major customers, but it takes time for such efforts to lead to actual sales within this industry. It could take at least another year before we see the results. Although competition for market share is intense, we must increase our market share.
We hope to launch systems with significantly improved productivity. We aim to increase our market share for the medium term by offering high-performance single-wafer cleaning systems that meet the increasing need for miniaturization.
The respective shares of cleaning systems and thermal processing systems are expected to increase. In terms of investment for miniaturization, demand for RLSA etch systems and ALD systems that cause less damage during processing will increase. In terms of investment to increase capacity, demand for thermal processing systems will increase.
The total fixed costs will increase by about 30 billion yen compared to the previous fiscal year. Some of this increase will be due to an increase in production, and 13 billion yen will be attributable to R&D expenses. We plan to carry out all necessary R&D activities.
At the most recent meeting to announce financial results in February, we said that the investment situation would come into view by around March, and indeed new Fab plans among major memory customers are becoming more concrete. For the 2010 calendar year, we have examined and added up specific customer plans; and we calculated and projected the growth rate for that year based on new Fab construction plans.
We project DRAM and NAND flash memory to grow by 50% and 90% in 2010, respectively.
Although it will depend on the market environment, we hope to surpass the previous peak sales level within two to three years. For the medium- to long-term, we hope to expand our business volume in fields where we already have a presence, develop new business ventures, and establish additional core business areas besides existing fields such as SPE.