Strengthening the optoelectronics business and improving productivity

「The company has commercialized high-precision substrates for smartphones based on circuit boards for HDDs and is pursuing expanded sales and production capacity in printed circuit boards. In FY2025, it applied the technology to a new application inside smartphones and began mass production.」

「In light of changes in the market environment, the company will work to create new businesses in non-display markets to achieve medium- to long-term growth.」

「Demand for optical films increased due to the earlier-than-planned production of high-end notebook PCs and tablets. Meanwhile, revenue declined because the company advanced its strategic withdrawal from optical films for LCD smartphones and reduced prices through material rationalization for process protective films.」

「As part of efforts to enter new markets, mass production began for flexible circuit boards using low-dielectric materials based on the group's proprietary porosification technology. The company will pursue expanded sales for high-speed signal transmission applications.」

「Revenue in Information Functional Materials grew compared with the previous interim consolidated period. Demand for optical films and transparent conductive films increased substantially as tablet production remained strong. In addition, demand for optical films, transparent adhesive sheets, process protective films and other peripheral components increased alongside higher production of high-end smartphones by Chinese manufacturers and the trend toward larger automotive displays.」

「The company decided to acquire a partial stake in TruLife Optics, a UK developer of augmented reality (AR) glasses. It will focus on developing materials that leverage the group's strengths in optical design technology and adhesive technologies, including thin-film and multilayer coating, to improve the performance and comfort of AR glasses.」

「Mass production of optical films for VR applications began on the new production line.」

「Mass production of optical films for VR applications began on the new production line.」

「Demand for products for automotive displays, a market in an expansion phase, remained firm, and a new production line for VR display products began operations.」

「Demand for optical films for automotive applications, a key growth area, increased, while demand for optical films for TVs and high-end notebook PCs declined due to deteriorating market conditions. Production capacity for optical films for virtual reality (VR) applications was also expanded to support future business growth.」

「Revenue from functional materials for information systems grew compared with the cumulative third quarter of the previous fiscal year. Demand for optical films for automotive applications, positioned as the next growth area in addition to high-end notebook PCs, increased.」

「Revenue from printed circuits grew compared with the cumulative second quarter of the previous fiscal year. Performance of high-precision substrates grew significantly as the number of models incorporating them increased for high-end smartphones.」

「Revenue from printed circuits grew compared with the cumulative first quarter of the previous fiscal year. Demand for CIS increased as production volumes of HDDs for data centers rose and HDD capacities increased. High-precision substrates for high-end smartphones contributed significantly to performance as the number of models incorporating them increased from the cumulative first quarter of the previous fiscal year.」

「Printed circuits grew compared with the previous consolidated fiscal year. Demand for circuit materials CIS (Circuit Integrated Suspension) increased as production volumes of HDDs for data centers rose and HDD capacities increased, and production capacity was expanded to address anticipated demand growth and supply obligations. High-precision substrates for high-end smartphones contributed significantly to performance as the number of adopted models expanded from the previous consolidated fiscal year.」

「High-precision substrates for high-end smartphones, for which supplies entered full-scale production from the previous consolidated fiscal year, contributed significantly to performance as the number of adopted models increased.」

「Printed circuits grew compared with the cumulative second quarter of the previous fiscal year. The number of adopted models using high-precision substrates increased, and demand grew significantly as production of high-end smartphones entered full-scale production.」

「Adoption of optical films for OLED displays in smartphones expanded. By contrast, TV products recorded royalty revenue from technology licensing in the first quarter of the previous fiscal year, and revenue declined due to the resulting reaction.」

「As part of efforts to enter new markets using high-precision substrates, the company expanded into hearing-aid components for wireless charging systems, and components for smartphones began contributing to performance.」

「In printed circuits, production volumes of hard disk drives (HDDs), particularly for personal computers, remained sluggish due to the impact of COVID-19, but demand associated with higher capacities for data-center applications remained firm. In addition to expanding into hearing-aid components for wireless charging systems by leveraging the printed-circuit business's advanced technological capabilities, the company began pursuing entry into the smartphone market.」

「In printed circuits, production volumes of hard disk drives (HDDs), particularly for personal computers, remained sluggish due to the impact of COVID-19, but demand associated with higher capacities for data-center applications remained firm. In addition, mass production began for hearing-aid components for wireless charging systems.」

「Although smartphone production volumes did not grow, the functional materials for information systems business addressed the processing of optical films into non-standard shapes in line with larger displays. As a result, performance in this application was strong compared with the previous consolidated fiscal year.」

「Although the smartphone market entered maturity, functional materials for information systems performed well compared with the same period of the previous year by addressing larger displays and the use of non-standard optical film shapes in smartphone applications.」

「Although the smartphone market entered maturity and no growth was seen in production volumes, the functional materials for information systems business captured customers' growth areas in smartphone applications and worked to improve production efficiency.」

「In functional materials for information systems, we will further enhance our industry-leading technological capabilities and respond to emerging display developments such as foldable and rollable displays. We will also thoroughly strengthen and streamline product lifecycle management, with the aim of expanding high-margin businesses.」

「In functional materials for information systems, new products such as transparent conductive films and transparent adhesive sheets for touch panels in smartphones using organic EL (OLED) displays made a significant contribution to performance by addressing changes in product material configurations and manufacturing processes.」

「In smartphones, various film materials for organic EL (OLED) displays, including transparent conductive films for touch panels, also generated a substantial increase in profit through improved productivity.」

「Optical films for liquid-crystal displays used in smartphones, tablets and notebook PCs continued to grow strongly, following strong performance from the second half of the previous fiscal year. In addition, shipments of transparent conductive films and transparent adhesive sheets for touch panels, as well as process protective films, for new high-end smartphones using organic EL (OLED) displays entered full-scale production and made a significant contribution to performance.」

「In Information Functional Materials, the core optical-film business for TV applications remained sluggish, but strong demand for high-end smartphones that had continued since the second half of the previous fiscal year drove further earnings growth. The company also advanced preparations for the adoption of OLED displays in smartphones, which is expected to progress, and achieved substantial growth in transparent conductive films for touch panels and protective films for manufacturing processes.」

「In the Optronics business, improvement was seen in optical films and printed circuits as demand recovered in the latter half of the period. We will continue to view major changes expected in applications in the electronics field as opportunities for new growth and provide customers with new value.」

「To address these challenges, we further developed the strengths of the Optronics business while vigorously transforming our business portfolio in the areas of Green (the environment), Clean (new energy) and Fine (life sciences).」