Hirata’s Strategies

Business Segment Strategies

Fiscal 2022 Results 

Automotive-related Business
Including EV-related systems, the primary components of power transmissions and drive
trains, electronic equipment such as computers to control them, sensors and other in-vehicle electronic components, and the air compressors used in air-conditioning, we provide
support for a wide range of production systems. Completely handling a large number ofdevices and items of equipment at the Company, we run comprehensive in-house tests toensure their correct operation before delivering them to our customers’ factories. Hirata’s
standard designs and solutions improve ease of maintenance for the end user. In addition,
digital twin technologies are used to design and develop production lines more efficiently.

S

W

Strengths

Both orders and sales of EVs have remained strong due
to continued strong capital investment in EVs against the
backdrop of global efforts aimed at carbon neutrality.

FY2022 Results

FY2024 Targets

Net sales (millions of yen)

30,29840,000Operating profit (millions of yen)

1,559

2,000

Operating profit ratio

5.1%

5%

Topic
Orders for Large Projects
1. Order for large-scale EV-related facility project (July 2022)• Two electric drive unit (EDU) assembly lines for EVs were ordered with an order value exceeding ¥10 billion• Part of this expected to contribute to the results from fiscal 2023 onward
2. Order for large-scale EV equipment project from an emerging North American manufacturer(November 2022)• EDU assembly lines for EVs and other equipment were ordered with an order value exceeding ¥7.5 billion• Part of this expected to contribute to the results from fiscal 2023 onward

Weaknesses(1) Integrated systems, from development to production andmaintenance(1) P rofitability management and profitability in new development projects(2) Engineering capabilities that enable us to fulfill customer
requirements(2) D evelopment capabilities for our unique key devices andstandard equipment(3) Vast plants where entire production lines can be verified(3) Competitiveness in specific regional markets(4) Trust and continuous transactions from customers(5) Broad product lineup

Opportunities

Business Strategies 
In addition to EDU assembly lines for EVs, IGBT module
assembly lines, and inverter assembly lines, we are focusing
on standardizing entire lines and customer development.
In addition to these existing businesses, we are working
to acquire and expand orders for new processes. In thebattery field, which is a key area of focus, in addition to
standardizing entire lines in the existing battery module
manufacturing process and charge and discharge systems(within the cell manufacturing process), we are working on
development and trial production to enter the cell manufacturing field and accumulate know-how. In regard to thedevelopment and improvement of key devices, we have

Threats

OT(1) Expansion of market for products that address environmental issues(1) C hanges in market environment due to tightening of environmental regulations(2) Local production for local consumption (strengthening of
local procurement at each manufacturing company)(2) D ecrease in number of parts and in demand for production
systems due to shift to EVs(3) Advancement of digitalization for business(3) Rise of Chinese companies(4) Cooperation on overseas expansion with domestic
companies(4) Exchange rate fluctuations

Medium-Term
Management Plan
Basic Policy

1completed four of the five tasks set forth in the MediumTerm Management Plan (Improvement of AutomatedWarehouses, Dual Head Wire Bonding Machines, AGV
Improvements, and Plant Simulation (Software)). Regarding
the development of charging and discharging equipment,
we have changed our strategy from in-house production toexternal procurement.
As orders grow, we are also addressing productionrelated issues such as factory space and human resource
shortages and are working to develop and receive orders
for mass production projects that will lead to continuationand expansion.
Development of Key Devices in the Battery Field

Business expansion in growth markets
Efforts to strengthen profitability of automotive-related business

Plan

ResultBusiness Environment 
Industry Outlook
The long-term expansion of the EV market represents afuture trend that can be regarded with certainty. To help
curb global temperature rises, governments around theworld and auto industry leaders have pledged to increase
the market penetration of EVs, the sales of which are
expected to reach 42 million units annually in fiscal 2030.
Major Business Partners
Our major business partners include General Motors andFord Motor Company in North America, Stellantis N.V. in
Europe, Toyota Motor Corporation, Honda Motor Co., Ltd.,and DENSO Corporation in Japan, as well as start-up EV
manufacturers.

Strategy change

EV Global Sales Volume Forecast(Millions of units)
80

60

75

Annual growth rate

19%)

Improvement of automated warehouses

30

2

02

(2
40

20

42
Dual head wire­bonding machines

2220

AGV improvements
10
31

0

(switched from inhouse production
to external
procurement)

Charge/dischargemachines

56

2020 2021 2022

2025

2030

2040

Development
complete(orders and inquiries
are on the rise dueto the expansion ofprocesses that we
support)Plant simulation(software)(FY)

Source: BloombergNEF

An example of an EV-related component production system

26

Hirata Integrated Report 2023

Hirata Integrated Report 2023

27

Hirata’s Strategies

Business Segment Strategies

Existing fields

Significant progress was made in standardizing entire lines and developing customers: EDU assembly lines for EVs,
IGBT module assembly lines, inverter assembly lines, gear-box assembly lines, rotor assembly lines, and statorassembly lines.

Prior investment/New fields

We have already begun development and prototyping for standardization of entire lines and entry into the cellmanufacturing field for the following: battery module and battery-pack manufacturing process and charging anddischarging systems (in cell manufacturing processes).

Development of key devices

Four of the five development themes set forth in the Medium-Term Management Plan have been completed(1) Chargers/Dischargers, (2) Improvement of Automated Warehouses,(3) Dual Head Wire Bonding Machines (Hard wiring devices with two heads),(4) AGV Improvement, and (5) Plant Simulation (Software)
Charging and discharging machine manufacturing was switched from in-house production to external procurement.

Semiconductor-related Equipment BusinessWe develop, manufacture, and sell components such as openers for various storage containers used for wafer transfer in semiconductor manufacturing processes, atmosphericand vacuum robots, and aligners. In addition, we are focusing on system products that
apply these technologies. For semiconductor manufacturing equipment manufacturers,
we provide EFEMs* optimized for each equipment type in the form of OEM and ODM, andfor semiconductor manufacturers (foundries), we offer EFEMs and sorters under our brand
name. We are also responding to innovations in semiconductor manufacturing technology(miniaturization and 3D miniaturization). In addition to the development, manufacture,and sale of various components and system products (EFEMs) used for the transportationof PLPs, we also offer N2 EFEMs to transport wafers in N2 (nitrogen) environments to curb
the adverse effect that the atmosphere has on wafers.
* Equipment front-end modules

Business Strategies by Region North America
Since the establishment of a North American Group
company in 1980, we recognize that our long-standing
track record and reliability have been highly evaluated.
While major automakers are investing heavily in EVs, highperformance ICE (internal combustion engines) sales are
expected to continue as the infrastructure for the full-scale
development of EVs has not yet been established. Hirata
will strengthen its competitiveness in both markets bystrengthening relationships with customers and promoting
standardization of equipment.

EuropeIn Europe, demand for EVs is expanding against the backdrop of demand-boosting measures by governments invarious countries. However, the market is highly c­ ompetitive,
and we will promote the creation of a system that canreliably conduct sales and maintenance without pursuingorder scale.

China
EVs are a market with solid demand due to China’s national
policies, such as “Made in China 2025” and “Strong
Manufacturing Country 2030.” We have also built up
a track record from the wave of local procurement by
Japanese companies. By promoting the acquisition ofdesign technology for EVs, regarding which we are aheadof the competition in Japan, we will expand opportunities
for orders in China.

S

W

Strengths(1) Extensive line-up of wafer transfer components(2) Provide lineup of components for PLP substrate transfer
(3) Lineup of system products that combine various components
(4) K nowledge and technology necessary for customization andoptimization of components and system products

Weaknesses

(1) D elays in strengthening overseas production bases (cost competitiveness) and in responding to local production for local
consumption trend(2) S trengthening of sales structure in European and U.S. markets(3) Profitability of parts sales and after-sales service business(4) Strengthening the lineup of our own-brand system products

Opportunities

Southeast Asia
We recognize that, at this point in time, EV-related investments have yet to begin in earnest, and that the resulting
major wave of local production opportunities has yet topresent itself. We will, however, make preparations for asmooth transition to the production systems in which Japanand other countries are taking the lead.

O(1) Further growth of semiconductor market(2) Innovation in semiconductor manufacturing technology(3) A cceleration of electrification due to stricter environmental
regulations(4) Local production for local consumption
(5) T rends toward vertical set-up and standardization of facilities
for fabrications by end users(6) Establishment, revisions, and addition of SEMI industry association standards

ThreatsT(1) S oaring material prices and longer delivery times stemming fromgrowing demand and conflicts(2) Rise of emerging market companies and start-ups(3) Innovation in semiconductor manufacturing technology(4) Economic friction, sanctions, and disputes(5) M arket exclusion due to legal regulations and economic policies(6) E stablishment, revisions, and additions of SEMI industry association standards

Business Environment 
Industry Outlook
Demand for semiconductors, which can be said to be thecore product of digitalization, is increasing year by year.
Also, in societies that are aiming to be carbon neutral by
2050, electrification is gaining pace, and the importanceof semiconductors, including their automotive applications, is increasing. Against the backdrop of governments
around the world that are considering the introduction andexpansion of policies to actively support investment in theirsemiconductor industries, semiconductor manufacturers ineach country are also planning record-high levels of capital
investment. The semiconductor market is expected toreach the equivalent of approximately ¥100 trillion in 2030,
and the semiconductor manufacturing equipment field is
expected to grow accordingly.
Major Business Partners
Our major business partners include Tokyo Electron Limited,
DISCO Inc., Advantest Corporation, ULVAC, Inc., and Ebara
Corporation.

28

Hirata Integrated Report 2023

Forecast of Global Semiconductor-related Equipment
Market Size
(10 billions of U.S. dollars)

120

11
9

100
80

5
4

40

7
6

6
5

60

100

60

55
44

20
0

2020

Semiconductors

2021

2022

Production equipment

2030

(FY)

Materials and components

Source: Based on all kinds of data, including from the Japan Electronics and Information
Technology Industries Association (JEITA) and Ministry of Economy, Trade and Industry(METI) (composition ratio of semiconductors, production equipment, and materials andcomponents assumed to remain the same until 2030, based on the METI’s Strategy for
Semiconductors and the Digital Industry Summary June 2021.)

Hirata Integrated Report 2023

29

Hirata’s Strategies

Business Segment Strategies

Fiscal 2022 Results Despite a slowdown in the semiconductor market, wesecured a high level of orders and sales in the fiscal year
under review, backed by a backlog of orders from theprevious fiscal year and capital investment demand in thelegacy (older generation) semiconductor sector.

FY2022 Results

FY2024 Targets

Net sales (millions of yen)

28,95440,000Operating profit (millions of yen)

3,445

6,000

Operating profit ratio

11.9%

15%

Promotion of Local Production
In addition to Taiwan, we have established a system that enables production and sales in China (Shanghai) and Southeast
Asia (Malaysia and Singapore) and are promoting local procurement of components.

Business Strategies 
We are promoting activities to develop equipment that iscompatible with the miniaturization of semiconductors. We
recognize that shortening the lead time until delivery is also
an issue, and we will work to improve production capacity
and availability of parts and materials through cooperation
with suppliers and promotion of digitalization.

We are also focusing on building a cooperative systemwith our overseas affiliates and are strengthening
cooperation in other regions, such as Southeast Asia andNorth America, in addition to China and Taiwan.
In response to changes in the external environment, weplan to review and formulate strategies and functions atoverseas bases.

Hirata Corporation of America
Detroit (New Hudson) Office

Hirata Engineering Europe GmbH
Hirata Automated Machinery (Shanghai) Co., Ltd.

Hirata TSUSHO (Shanghai) Co., Ltd.
Taiwan Hirata Corporation

Indianapolis Office
Hirata Engineering S.A. De C.V.

Hirata Engineering (Thailand) Co., Ltd.
Hirata FA Engineering (M) Sdn. Bhd.
Hirata FA Engineering (S) Pte. Ltd.

Medium-Term
Management Plan
Basic Policy

1

Business expansion in growth markets
Efforts to strengthen profitability of semiconductor-related equipment business and bolster efforts to adopt EFEM
Standardization

System Example
Vacuum robot

Load port

Vacuum-compatible
wafer transfer robot

A device that delivers
wafers into various
processing devices

Base where local production is being newly promoted
Base where local production is currently being conducted
Other type of baseProduction efficiency

Strengthen cooperation with suppliers to reduce the risk of delays in component delivery and improve productivity

Development of next-generationequipment

Development of semiconductor transport equipment responding to the miniaturization of semiconductors has already
begun

EFEM
Business Strategies by Region 

Located in front ofprocess equipment thatprocesses wafers andpanels, EFEM transfers
wafers and panels
between containers andprocess equipment in aclean environment.

Atmospheric robot
Atmospheric wafertransfer robot

North America
We have an ongoing business relationship with a specificsemiconductor manufacturer in the United States and willcontinue to maintain a system that enables us to realize
local sales and maintenance while cooperating with ourmanufacturing bases in Japan.

China
The investment environment for semiconductors has been
improving due to China’s national policies, such as “Madein China 2025” and “Strong Manufacturing Country
2030.” We will focus on providing technical education for
employees so that we can expand the manufacturing ofwafer transfer equipment in China, which is ahead of othercompanies in Japan and Taiwan.

EuropeOrders for openers and other products have beenstrong thanks to the expansion of investments by local
manufacturers in the semiconductor market. Whilefocusing on standard products, we will promote thecreation of a system that enables us to realize local sales
and maintenance.

Southeast Asia
In Singapore and Malaysia, as semiconductor fab investments
have been announced one after another, we will promotesales of wafer transfer equipment, recognizing that theseregions are expected to grow in sales in the future.

Electric gate valve
An electric device thatmaintains a vacuum state

30

Hirata Integrated Report 2023

Aligner
Wafer
positioning
deviceHirata Integrated Report 2023

31

Hirata’s Strategies

Business Segment Strategies

Home Electronics

Other Automatic Labor-saving Business
Having started out as a manufacturer of transport equipment that supplied carts, theCompany commenced the manufacture of conveyors, which formed the catalyst for ourcurrent business, after its establishment in 1951 and then underwent a transformation
into a robotics and production systems business. Having pursued technological innovation
with the desire to allow people to devote themselves to creative work that only people
can do, and having not limited ourselves to the automotive and semiconductor industries,
we provide labor-saving equipment to customers in a variety of fields. In formulating the
Medium-Term Management Plan (FY2022–FY2024), we reviewed our business segments
and classified them into three businesses: Automotive-related, semiconductor-related
equipment, and other automatic labor-saving equipment. In the latter, we manufactureand sell production equipment for a variety of fields, such as flat panel displays (FPDs),
home electronics, and medical and scientific devices.

Net sales (millions of yen)

FY2022 Results

FY2024 Targets

16,95220,000

930

2,000

5.5%

10%

Operating profit (millions of yen)
Operating profit ratio

Putting functional safety at the forefront, we are working
on the development and improvement of industrial andmedical robots.
Targeting production systems in the electric vehicle (EV)and semiconductor fields, which are expected to see further
growth in the years to come, we will make more improvements in terms of safety, performance, functionality, andoperability and strive to broaden the reach and improve theperformance of our equipment.

tailor-made for the products and factory environments ofour customers.

FPDs

ATS (cell observation device)

EZ-PATH FLOAT (pathological tissue
specimen preparation device)

TopicsHigh-intensity Focused Ultrasound Device forCancer Treatment

Head section containing an ultrasonic transducer

is progressing, but as the equipment has become larger,
many technical issues have arisen. With our technologicalstrength and production capacity for large FPD production
systems that we have cultivated so far, the Group will workto acquire markets.

Eco Electric Series—Contributing to Sustainable Manufacturing
The brushless DC motor developed in-house enables labor-saving andcompactness of conveying equipment.

In January 2021, we started joint development of a high-intensity focusedultrasound device for cancer treatment with SONIRE Therapeutics Inc.
(hereinafter “SONIRE”). In order to take advantage of the new treatment
method developed by SONIRE called microbubble-enhanced HIFU (highintensity focused ultrasound) treatment, we have developed a safe medical robot that can accurately follow the control inputs performed by thedoctor.

Hirata’s eco-friendly conveyance system for sustainable manufacturing• Built-in compact, high-efficiency
brushless DC motor developed inhouse for the Eco electric series• Activates only through 24 VDC ON/
OFF operation. Does not require adrive panel or controller

Comment
It was important to create a system and structure that would not delay the
production of specifications, verification records, and design documents
without omissions during development. Since it is necessary to move theheavy head section of the unit to the affected area, we devised a function thatallows medical professionals to operate the head section directly and easily.
We are committed to realizing functions that are easier to use and safer, andwe would like to use our technology to treat as many people as possible.

Due to the high image quality and high-speed responsefeatures of organic EL displays, demand for their use isincreasing not only in mobile phones but also in devices
with large screens. To improve productivity, there isdemand to shift the substrate size from G6 to G8, which
is currently the mainstream, and equipment development

Topic

Fusion of ultrasound technology and robotic technology

Hirata Integrated Report 2023

Industrial Robots
Industrial robots represent our core technology. We havestandard robot controllers, with which multiple types ofrobots can be operated in a same environment. It is also
possible to operate a robot from a host device such as aprogrammable logic controller (PLC) or PC without using arobot language, reducing the burden on system designers
and shortening the time required to set up the equipment.
Selling multiple types of robots articulated along orthogonal,
horizontal, and vertical axes, we provide products that match
the processes of a wide range of production systems.

For a variety of industrial fields, we offer highly versatileand customized automated warehouses and storage ­stockers
with no restrictions, manufacturing and selling products

Medical, Chemistry, and Physics Devices

32

that are continuing to evolve. These include mobile devices
such as smartphones and tablets, high-quality displays, andhigh-performance vacuum cleaners.

Distribution (Transfer Systems)

Individual Segments We are developing and manufacturing robot systems andmedical devices that contribute to the automation of laboratory testing.
We are promoting product development with the goalof fully automating pathological examinations. Engaging in
the development of equipment for medical use, with regard
to cancer treatment equipment, we are working together
with our customers to develop medical devices that comply
with laws and safety standards for the purpose of obtaining
pharmaceutical approvals.

By effectively combining the technologies that are at theCompany’s disposal, such as transfer, robot, clean room,and precision assembly technologies, we provide global
support for parts and final assembly of home electronics

Mr. Inoue

Mr. Shimizu#1 Equipment
Business Division

Robot DivisionF or more information, please visit the Eco Electric Series website.
https://hirata-ecoele.com/en

Hirata Integrated Report 2023

33