FOCUS

4Electronics Business for New Frontiers
22
Toyota Industries will develop its Electronics Segment
TOYOTA INDUSTRIES CORPORATION

into a main business pillar.

In the fall of 2001, ST-LCD will begin a capital
investment program of ¥75 billion to establish a

In October 1997, Toyota Industries and Sonysecond production line, scheduled to come on stream

Corporation established ST Liquid Crystal Display

in June 2002. It will also increase the capacity of its

Corp. (“ST-LCD”) as a 50-50 joint venture. ST-LCD

first production line. In total, ST-LCD will increase its

manufactures low-temperature polysilicon TFT LCD

monthly capacity from 12,000 to 32,000 base plates

panels. The company benefits from Sony’s advanced(600mm x 720mm).

technologies and Toyota Industries’ superior quality
control and manufacturing technologies.

To help fund this investment, Sony and Toyota
Industries will each inject ¥10 billion into ST-LCD,

ANNUAL REPORT 2001

Since it began mass production in April 1999,

increasing the company’s capital to ¥50 billion. Sony,

ST-LCD has expanded its production to meet rising

Toyota Industries and ST-LCD regard the poly-Si TFT

market demand. A unique production line that

LCD as a vital device in the field of compact displays,

incorporates the Toyota Production System ensuresand collaborate to develop and manufacture superior

that quality keeps pace with output. ST-LCD is now

products for further expansion of the business.

operating at full capacity, producing small LCD panels

Toyota Industries also entered the electronic

for digital still and video cameras. The panels aresubstrate business through its subsidiary, TIBC

supplied to a number of customers through Sony.

Corporation (“TIBC”), a joint venture with Ibiden Co.,

ST-LCD panels are energy-efficient, and offer highresolution as well as high numerical aperture. They
also facilitate the integration of the display device andits driver circuits into a single TFT glass base plate.
The resultant cost reduction and miniaturization of thedisplay unit allows the LCD panels to be used in awide range of applications, including in-car monitors.
They are also suitable for use in wide-band mobilephones, where they allow the easy exchange of large
volumes of data for video and still images. We expectthat demand for low-temperature poly-Si TFT LCDpanels will increase further as their application in
high-definition displays extends to ever smaller, lighter
mobile phones and personal digital assistants.

Ltd. (“Ibiden”). TIBC manufactures ball grid array(BGA)-type plastic package substrates and f lexible
printed circuit (FPC)-type substrates. These substrates
are indispensable for personal computers, digital stilland video cameras, mobile phones, IC cards and manyother devices. Substrates manufactured by TIBC are23

supplied to a number of chip manufacturers and otherhigh-tech companies worldwide through Ibiden.

TOYOTA INDUSTRIES CORPORATION

The high-tech industry is currently suffering abusiness slowdown. Through aggressive reduction ofmanufacturing costs and strengthening of production
technologies, however, we aim to reinforce TIBC’s
corporate strengths so that it will be immune tomarket fluctuations. Furthermore, the high-techindustry is expected to continue expanding over themedium and long term, and we are confident thatTIBC’s scope of business will expand accordingly.

for environmental management. In April 2001, it
obtained QS9000 certification for its quality assurance.
Toyota Industries’ Semiconductor & Electronics
Equipment Division* develops and manufactureselectronic components for automobiles, most notably

BGA-type plastic package substrates and FPC-type
substrates made by TIBC are sold to customers worldwide
through Ibiden and used for high-technology products suchas PCs and IC cards.

the DC-DC converter for the Prius, TOYOTA’s strategic
hybrid car.
We are looking to our electronics business toprovide substantial future growth, and intend toallocate the necessary management resources to makethis an important and successful business area.
* The Semiconductor & Electronics Equipment Division was integrated into
the Technology Development Center as of July 1, 2001.

Low-temperature polysilicon TFT LCD panels made by ST-LCD areincorporated in products such as digital video/still cameras, personal
digital assistants (PDAs) made by Sony and other companies.

ANNUAL REPORT 2001

In January 2000, TIBC obtained ISO14001
certification, the internationally recognized standard