F O C U S

4Electronics Business —A Key to Future Growth
ST-LCD is now producing the LCD panel for mainly mobilephones digital still and video cameras, and personal digitalassistants (PDAs). The panels are supplied to customers
through Sony.
The low-temperature poly-Si TFT-LCD panels are energyefficient, and offer high resolution as well as high numericalaperture. They also facilitate the integration of the display
device and its driver circuits into a single TFT glass base plate.
The resultant reduction in cost and miniaturization of thedisplay unit allow the LCD panel to be used in a wide range ofapplications, including in-car monitors.
They are also suitable for wide-band mobile phones, where
they allow easy exchange of large volumes of data for video
and still images. We expect that demand for low-temperaturepoly-Si TFT-LCD panels will increase further as their
Toyota Industries is confident that its Electronics Business has

application in high-definition displays extends to ever smaller,significant growth potential, and we anticipate further market

lighter mobile phones and PDAs.

expansion in the long term. We intend to allocate theAnticipating a sharp increase in demand for the panels overnecessary capital and management resources to turn thisthe medium to long term, in the fall of 2001 ST-LCD invested

potential into reality.

¥75 billion to establish a second production line, andincreased the capacity of its first production line. In total, ST-LCD Business

LCD now has a monthly capacity of 32,000 base plates

In October 1997, Toyota Industries and Sony Corporation(600mm x 720mm). To help fund this investment, Sony and(“Sony”) established ST Liquid Crystal Display Corp. (“ST-LCD”)

Toyota Industries each injected ¥10 billion into ST-LCD,

as a 50-50 joint venture. ST-LCD manufactures low-increasing its capital to ¥50 billion. Looking closely and flexibly

temperature polysilicon TFT-LCD panels. ST-LCD benefits fromat the pattern of demand, ST-LCD has gradually increased theSony’s advanced LCD development technologies and Toyota

production volume of the second line since the summer ofIndustries’ superior quality control and manufacturing

2002. In anticipation of an increase in demand for mobiletechnologies.

phone and digital camera applications, it plans to start full-Since our investment in ST-LCD is not a majority stake, wefledged operation within 2003. Sony, Toyota Industries anddo not include it as a subsidiary but account for it as anST-LCD regard the low-temperature poly-Si TFT-LCD as a key

affiliate by the equity method. Nevertheless, we consider

device in the field of compact displays, and are collaborating

ST-LCD as the core of our Electronics Business. Since it began

to develop and manufacture superior products for furthermass production in April 1999, ST-LCD has expanded

expansion of the business.

production to meet rising market demand. A uniqueproduction line that incorporates the Toyota Production
System ensures that quality keeps pace with output.
Toyota Industries believes that the outstanding features of28

Semiconductor Package SubstrateBusinessToyota Industries entered the semiconductor package

the low-temperature poly-Si TFT-LCD panel give it significant

substrate business through its subsidiary, TIBC Corporation

potential to spur greater demand in the medium to long term.

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

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

Established in 1998, TIBC manufactures ball grid array (BGA)

Fitted in Toyota Motor Corporation’s Prius hybrid car as a main

plastic package substrates and flexible printed circuit (FPC)

component, the converter is a switching power supply that

substrates. Although TIBC experienced difficulties due to thedown-converts the high-voltage current of the main battery toworldwide IT slump, it will commit itself to improving its

a lower DC current to supply power for headlights, air

production efficiency, manufacturing cutting-edge productsconditioners and electric control units via the auxiliary battery.

that accurately reflect customer needs such as high-The Center aims to establish a position as a manufacturer of

performance package substrates, and strengthening its

power sources for hybrid cars.

competitive edge. TIBC’s BGA plastic package substrates are
manufacturers worldwide and Integrated Device

Joint Development
through Business Collaboration

Manufacturers (IDMs) in South Korea and Taiwan for use in

We have been developing an ultra-PCs, mobile phones and others. Similarly, TIBC’s FPC substrates

compact radio tuner for AM/FM/

are marketed by Ibiden to IDMs in Europe and China forteletext broadcasts jointly with Niigata

incorporation in credit cards, telephone cards and others.

Seimitsu Co., Ltd. (“Niigata”) as part of

supplied through Ibiden to major semiconductora business collaboration agreement.

Corporate Technical Center

This is the world’s first radio tuner to

Toyota Industries’ Corporate Technical Center develops andincorporate both analog and digitalmanufactures power electronics parts for automobiles, andcircuits by utilizing total CMOS RF IC

engages in basic R&D in the materials field as well as researchtechnology. In addition to facilitatingin the latest technologies, such as electronics for commercial

the design of ultra-compact car radio systems, this product willuse. The Center also serves as Toyota Industries’ R&D facility

enable mobile phones and PDAs to receive radio and teletext

and its production base for a vast array of electronics parts, sobroadcasts, opening the way for application in a wide range ofaccumulating know-how in product manufacture. Products

information devices. Toyota Industries and Niigata are working

include a DC-DC converter that fully employs the Center’s

closely on the feasibility of mass production for this unit.

Radio tuner module

long-cultivated power electronics technology and expertise.

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

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