Create New
Value

Business Strategy
for IT-related Chemicals Sector
September 1, 2016
Business Strategy for the IT-related Chemicals Sector

Toshihisa Deguchi
IT-related Chemicals Sector,
Representative Director &Senior Managing
Executive Officer

1

Contents

Create New Value

Overview of Our IT-related Chemicals BusinessBusiness Environment for the IT-related Chemicals

Global Business Strategy
Development of Flexible Display Materials

Business Strategy for the IT-related Chemicals Sector

2

Contents

Create New Value

Overview of Our IT-related Chemicals BusinessBusiness Environment for IT-related Chemicals

Global Business Strategy
Development of Flexible Display Materials

Business Strategy for the IT-related Chemicals Sector

3

Business Overview of IT-related Chemicals

Create New Value

Flat Panel Display Materials
Color filters
Polarizing films
Touchscreen panels
Polarizing films

Photo spacers

Overcoat agents
Touchscreen
panelsCleaning
chemicalsLight diffusion plates

Processing chemicals for
LCD panels (etchant, stripper)

Materials

Color resists

Photoresists(upstream process)Light guide plates

Photoresists

Thick i-line resists (downstream process)

Sapphire

GaN substrates

Others

Aluminum targets

Processing
chemicals forsemiconductors(sulfuric acid,hydrogen peroxide
solution, and others)

Semiconductor
Materials

Aluminum targets

GaAs epiwafers GaN epiwafers

Components
Compound Semiconductor Materials
Business Strategy for the IT-related Chemicals Sector

GaAs epiwafers

4Flat Panel Display Materials

Create New Value

Sumitomo Chemical Products Used in LCD Panels
Structure of Liquid Crystal Displays●Polarizing film

Glass substrate
Color filter layer●Color filter●Color resist
ITO electrode
Liquid crystals

Liquid crystal layer

TFT layer●Photoresists, Aluminum targets,
Processing chemicals for LCD panels(Etchant, Stripper)
ITO electrode
LED light source●Sapphire substrates●Polarizing film
●Light diffusion plates(Note)●： Indicates Sumitomo Chemical productBusiness Strategy for the IT-related Chemicals Sector●Light guide plates5Flat Panel Display Materials

Create New Value

Sumitomo Chemicals Products Used in OLED Panels
OLED display structure
Sealing glass
ITO
Hole injection layer

Emissive layer

Sumitomo Chemical’s
OLED-related materials
OLED display structure

CathodeGlass

SC’s materials (already on market)

Cover glass
Polarizer
ITO (xy)

Sealing glass
OLED
Glass

Business Strategy for the IT-related Chemicals Sector

SC’s materials (under development)

Window film

Polarizer

Liquid crystal coated polarizer

Touchscreen panel(TSP)

Flexible TSP
PLED light-emitting materials

Barrier film

6

Semiconductor Materials

Create New Value

Sumitomo Chemical Products Used in
Semiconductor Chip Manufacturing
Chip pre-assembly

Sumitomo Chemical Products

Single-crystal wafer

Pattern lithography

Photoresists (i-line/KrF・ArF)
Processing chemicals
for semiconductors

Etching
Oxidation, diffusion, CVD, ion implantation

Argon gas

CMP
Metal layer

Aluminum targets

Interlayer dielectric
Wafer cleaning

Packaging/assembly
Business Strategy for the IT-related Chemicals Sector

Thick i-line resist

7Compound Semiconductor Materials

Create New Value

Sumitomo Chemical compound semiconductor materials
Products

Existing products GaAs epiwafers

Next-generation
products

Applications

Smartphone switches and amps, LEDs

GaN substrates

Blue semiconductor lasers,
high-luminance LEDs and powerdevices

GaN-on-SiC epiwafers

High-output high-frequency devices(for radars and communication basestations)

GaN-on-Si epiwafers

Power devices (household electricalappliances and IT equipment)

GaN-on-GaN epiwafers Power devices (trains, cars, andelectricity transmission anddistribution)
Business Strategy for the IT-related Chemicals Sector

8Consolidated Sales

Create New Value

Before change in business portfolio

After change(Billions of yen)

700

100%

600

95%
500
90%

400

Others
China
Korea

300

85%

TaiwanJapan
Overseas Sales Ratio

200
80%
100
0

75%
2006

2008

2010

Business Strategy for the IT-related Chemicals Sector

2012

2014

2016

2018
9

Sales by Product Portfolio
Create New ValueFY 2015

FY 2018

1%
5%

3%

6%

1%
3% 2%

3%

1%
4%

6%
6%

8%
54%

11%

13%

11%

Polarizing films

49%

13%

Touchscreen panels

Compound semiconductors

Processing chemicals

Color filters

Business Strategy for the IT-related Chemicals Sector

Aluminum targets

Color resists

Photoresists

New products

Others10

Our Market Needs-Driven Global Supply Chain

Create New Value

Overseas Operations

⑨
③
⑫ ② ①
⑬④⑥⑤
⑪⑦

⑩

⑧
①Japan⑧Singapore②Korea⑨Belgium③China (Beijing)⑩America④China (Hefei)⑪China (Shenzhen)

Production plants⑤China (Shanghai)
Sales offices
R&D labs
Business Strategy for the IT-related Chemicals Sector⑥China (Wuxi)⑫China (Xi’an)⑬China (Chongqing)⑦Taiwan11

Our Business in Korea

Create New Value

Our business facilities

Customers’ business facilities◆Pyongtaek
・Dongwoo Fine-Chem Co., Ltd.
(Head office/Plant/Research laboratory)- Polarizing films- Touchscreen panels- Color filters- Processing chemicals for LCD panels andsemiconductors- Color resists

Samsung Electronics
Seoul

LGD

Daegu
Gumi

◆IksanBusan・Dongwoo Fine-Chem Co., Ltd.
(Plant/Research laboratory)- Processing chemicals for LCD panels,
semiconductors(- High-purity alumina)

Sales： 225 billion yen (FY2015)
Number of employees： 3,132 (end of FY2015)
Business Strategy for the IT-related Chemicals Sector◆Daegu・SSLM Co., Ltd. (Head office/ Plant)- Sapphire substrates(- Separators)
12

Our Business in Taiwan
Our business facilities◆ Hsinchu

Customers’ business facilities

Innolux Corporation

Create New Value

・Sumika Technology Co., Ltd.
(Plant)- Color filters

AU Optronics◆ Tainan・Sumika Technology Co., Ltd.
(Head office/Plant/Research laboratory)- Polarizing films- Aluminum targets- Color resists- Ink jet printing light-guide plate(LGP)

TaipeiTainanSales： 100 billion yen (FY2015)

Number of employees： 2,467 (end of FY2015)
Business Strategy for the IT-related Chemicals Sector

13

Our Business in China

Create New Value

Sumika Electronic Materials Group

Sales： 105 billion of yen (FY2015)
Number of employees： 1,904 (end of FY2015)

Our business facilities
Customers’ business facilities◆Beijing-Polarizing films

BOE◆Hefei

Beijing－Processing chemicals for
LCD panels

Samsung Electronics◆Shanghai◆Xi’an-Polarizing films, aluminum targets-Processing chemicals forsemiconductors

Hefei

Xi’an

Shanghai

BOE◆Chongqing

TianmaChongqing－Processing chemicals for
LCD panels

BOE◆Shenzhen- Polarizing films

Business Strategy for the IT-related Chemicals Sector

Wuxi
Samsung Electronics

Shenzhen◆Wuxi-Polarizing films, Light guide plates
14Current Status of Our Global Business

Create New Value

Sales by country (FY2015)
Others4%

Number of employees by country(as of end of FY2015)

Others1%

Taiwan
18%

Japan
18%

Taiwan
25%

Japan
23%

China
19%
Korea
41%

Business Strategy for the IT-related Chemicals Sector

China
19%

Korea
32%

15

Contents

Create New Value

Overview of Our IT-related Chemicals BusinessBusiness Environment for IT-related Chemicals

Global Business Strategy
Development of Flexible Display Materials

Business Strategy for the IT-related Chemicals Sector

16Flat Panel Display Materials Market

Create New Value

LCDs for the TV market
Demand and production capacity for LCD panels for TVs by country(Million units)

Japan

Taiwan

Korea

China

DemandAverage size

(Inches)

350

45

300

44

250

43

200

42

150

41

100

40

50

39

0

38
SupplyDemand2014

SupplyDemand2015

SupplyDemand2016

SupplyDemand2017

SupplyDemand2018

SupplyDemand2019

SupplyDemand2020(Source： IHS Technology (DisplaySearch))
Business Strategy for the IT-related Chemicals Sector

17Flat Panel Display Materials Market

Create New Value

LCDs for the TV market
Chinese panel makers’ investment plans from 2017
Start of
Operation

CompanyLine

Location Generation (thousands/month)

Q3 2017BOE

B10

Fuzhou

8.5

120

HKC

－

Chongqing

8.670

Q2 2018

BOE

B9

Hefei

10.5

90

2018

BOE

B11

Mianyang

8.5

120

CEC IRICO－

Xianyang

8.6

60

CSOT

T6

Guangzhou

10.5

90

Q2 2019

Business Strategy for the IT-related Chemicals Sector

Capacity

18

Flat Panel Display Materials Market

Create New Value

Displays for the mobile devices market
Demand and production capacity for displays for mobile devices
OLED (except China)(Million units)

OLED (China)

LCD (except China)

LCD (China)

3,000

2,500

2,000

1,500

1,000

LCD

500

OLED

0
SupplyDemand2013

SupplyDemandSupply2014

Demand2015

SupplyDemand2016

SupplyDemand2017

SupplyDemand2018

SupplyDemand2019

Estimates by Sumitomo Chemical based on IHS Technology (DisplaySearch)
Business Strategy for the IT-related Chemicals Sector

19Flat Panel Display Materials Market

Create New Value

Displays for the mobile devices market
Investment plans for production facilities for smartphone LCD/OLED displays
Start of
Operation
Q3 2016

Q4 20162016
Q1 2017

Q2 2017
Q3 2017
Q4 20172018

CompanyCountry

Technology

Generation

Capacity(thousands/month)

JDI
INX
TianmaSDC
TCL
TCL
Tianma
FVO
SDC
LGD
SDC
LGD
BOE
TianmaJDI
LGD
Hon HaiJapan
Taiwan
China
Korea
China
China
China
China
Korea
Korea
Korea
Korea
China
China
Japan
Korea
China

LTPS/LTPO
LTPS
LTPS
OLED
LTPS
OLED
OLED
LTPS
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
LTPS/OLED

6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6

50
24
30
30
60
60
30
30
30
10
30
25
45
30
25
50
60

Business Strategy for the IT-related Chemicals Sector

20Flat Panel Display Materials Market

Create New Value

Smartphone OLED displays market(Million)

Launch of
OLED displays

Growing
OLED demand

Launch of flexible displays

600
+27%
500

OLED
+28%

+19%

2016

2017

400
+52%
Year on Year
-13%

300
200

100
0
2013

2014

2015

2018

(Source： IHS Technology (DisplaySearch))
Business Strategy for the IT-related Chemicals Sector

21Flat Panel Display Materials Market

Create New Value

Color resists market
Japan(1,000t)

Taiwan

Korea

China

18
16
14
12
10

8
6
4
2
0
2012

2013

2014

2015

2016

2017

2018

*Sumitomo Chemical estimations
Business Strategy for the IT-related Chemicals Sector

22Flat Panel Display Materials Market

Create New Value

Required properties for liquid crystal displays and color resists
Required properties forliquid crystal displays

Required
Properties forcolor resists

Technology trends

Higher color
reproduction①LCD Panelstandards

NTSC/72%=s-RGB

⇒

DCI/
adobe

⇒

UHDTV
(BT2020)

Deeper colors

Greaterbrightness②Backlights(White) LEDs⇒

3 wavelength
backlights

⇒

Laser
backlights

HightransmittanceHigher definition③Imageresolution（TV)(Mobile)2K
2K

600ppi600ppi

Requirement for color resists
1. High resolution resin that can provide high definition
displays.
2. Color material that has both a high transmittanceand deeper colors, even with a thin layer.

Business Strategy for the IT-related Chemicals Sector

4K 4K

8K8K
800ppi800ppiHigh resolution

NTSC：
sRGB：
Adobe：
DCI：
BT.2020：

23

Semiconductor Materials Market

Create New Value

Main semiconductor manufacturing capacity forecast by region (12 inch plant)(Index)
140

120
100
China

80

America and others

60

Taiwan
Korea

40
20
0
2016

2018

2020

Trends in miniaturization of circuits

2016
DRAM
20nm
LSI
14-16nm

2017
1Xnm
10nm

Business Strategy for the IT-related Chemicals Sector

2018

2019

1Ynm
1Znm
7nm

*Sumitomo Chemical estimations

24

Compound Semiconductor Market

Create New Value

Power devices market (GaN-on-Si)(Thousand)Shipment Volume

Shipment Amount(Millions of USD)

700

350

600

300

500

250

400

200

300

150

200

100

100

50

0

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(in terms of 6-inch product)
Business Strategy for the IT-related Chemicals Sector(Source：Yole Développement)
25

Compound Semiconductor Market

Create New ValueGaN substrates market
Shipment Volume(Thousand)Shipment Amount(Millions of USD)

700

350

600

300

500

250

400

200

300

150

200

100

100

50

0

0

2014

2015

2016

Business Strategy for the IT-related Chemicals Sector

2017

2018

2019

2020

(Source：Fuji Chimera Research Institute, Inc.)
26

Contents

Create New Value

Overview of Our IT-related Chemicals BusinessBusiness Environment for IT-related Chemicals

Global Business Strategy
Development of Flexible Display Materials

Business Strategy for the IT-related Chemicals Sector

27Medium to Long-term Vision for IT-related Chemicals Sector
Create New Value

Medium tolong-term goal

Deliver new value that responds to the changes in the ICT industry byleveraging our material development capabilities in collaborative
development with customers

FY2018 Target

Action planNet sales
Operating income

Secure sustainability of thepolarizer business

Operating income variance analysis(FY2015 v/s FY2018)

Expand the touch sensor business

Expand the semiconductor
強みmaterials business

(¥ billion)

Volumesand others

40

20

弱み

Develop a new core business
機会 in脅威
addition to the polarizer andtouchscreen businesses

0-20

Streamlining-40

Fixed costs

-60

-80
-100

FY 2015
OperatingincomeBusiness Strategy for the IT-related Chemicals Sector¥490.0 billion¥34.0 billion

Margins
FY 2018
Operatingincome(Target)28

Flat Panel Display Materials

Create New Value

Polarizing films for TV
Market Environment

Pressure to lower prices

・Commoditization of technology
・Maturation of the market
・Chinese LCD makers rushing to build new facilities

Basic Strategy
Global balance optimization
Promoting thorough cost
rationalization(Index)

Slight increase in panel demand

Polarizing film supply capacity transition

Global balance optimization

200

Accelerated
the speed ofproduction lines

180
160

140
120

Built newproduction lines

100
80

Maximize use of existing resources

60

40

Increased sales of products
using in-house produced materials

20
0

2009
Business Strategy for the IT-related Chemicals Sector

2012

2015

2018
29

Flat Panel Display Materials

Create New Value

Polarizing films for TV
Each production line focuses on producing products
it can produce most efficiently↓
Realize global balance optimization

Dongwoo Fine-Chem
Co., Ltd.
in Korea

Sumitomo ChemicalCo., Ltd

Sumika Electronic Materials
Co., Ltdin China

Production capacity
by country

Japan
10%
Sumika Technology
Co., Ltd.
in Taiwan
Business Strategy for the IT-related Chemicals Sector

Taiwan Korea
30%
60%

30

Flat Panel Display Materials

Create New Value

Polarizing films for mobile devices(Index)Market Environment
・LCD panel oversupply

Prices of Polarizing Films
for Mobile Devices

120
Increased competition, reduced prices

100・Market maturation

80

・Rise of Chinese brands OLED market expansion gathers steam

60

・Growth of OLED panels

40

2012

2013

2014

2015

Basic Strategy
Entry into promising markets
Utilize our broad technology lineup
Automotive applications
OLED-related materials
Ultrathin stretched polarizing film
High durability polarizing film
Special processing
Reverse wavelength dispersion film
Coated-type polarizer

Business Strategy for the IT-related Chemicals Sector

31Flat Panel Display Materials
Color resists

Create New Value(Index)Our Shipments and Market Share

350

45%

300

40%
35%

Market Environment

250

・Increased demand for highbrightness/definition/color reproducibility

200

25%

150

20%

・Growth of the Chinese panel market

100

30%

15%
10%

50

Basic Strategy

5%

0

0%
2012年

Differentiation through customization fordifferent customers utilizing our superior
dye development capabilities
Enhance customer support in growth
regions

2015年

2018年

Accelerating the development ofdye color resists
Global research targetedat the Chinese market,
setting up a technical service structure

Track record of responding tocustomer needs in Taiwan and Korea
Accumulated technology from our dyes businessBusiness Strategy for the IT-related Chemicals Sector

32

Flat Panel Display Materials

Create New Value

Touchscreen panels (glass substrate and film substrate types)
Production Capacity

Market Environment
・Expanding market for OLED displays(increased demand for on-cell touch
screen panels)

Film- type(Index)Glass- type

250
200
150
100
50

Basic Strategy

0

2015

Maintain top market share foron-cell type touchscreen panels
Fully satisfy broad customer needs

Development capability of high-resolution products
through differentiated technology

2016

2017

2018

(Differentiation)
・Develop thinner glass-type
touchscreen panels
・In-house processing of ITO layers

Increase customers for bothglass substrate and film substrate types

Development capability and cost competitivenessthrough in-house manufacturing of raw materials

Business Strategy for the IT-related Chemicals Sector

33

Flat Panel Display Materials

Create New Value

Touchscreen panels (glass and film types)
Glass-type touchscreen panels

Film-type touchscreen panels(Making sensors on sealing glass)(Making sensors on film substrate)

Cover glass

Cover glass

Polarizing film
Glass-type touchscreen
panelsPolarizing film

Sealing glass

Sealing layer

OLED
Glass

OLED

・Increase production capacity
in the second half of 2016

Maintain top market share foron-cell type touchscreen panels
Business Strategy for the IT-related Chemicals Sector

Film-type touchscreen panels
Film substrate

Glass・Launched in February 2015, currently
in mass production
・Contributing to curved OLED displays

The first step towardachieving flexible displays
34

Semiconductor Materials

Create New Value

Photoresists(Index) Sales Volume of Immersion ArF Resists
250

Market Environment

200

・High integration/miniaturization/3D

150・Growth in the advanced logic and memory fields

100・Evolution of packaging and assembly technology

50

0
2015
Immersion ArF resist market
continues to expand

2016

2017

2018

New business opportunity
in post-processing

Basic Strategy
Maintain and improve high market sharein immersion ArF resists
Expand our product portfolio

Meet the growing demand not only in Korea,
Taiwan and the US, but also in China

Development and aggressive marketing of
final generation Immersion ArF resists

Our market share in immersion ArF resisits(Currently 32% ⇒FY2018 30%)
Expansion of our post-process
thick i-line resist businessTotal manufacturing from basic materials
based on organic synthetic technology

Quality management down to the nanoscale level
Business Strategy for the IT-related Chemicals Sector

35Compound Semiconductors Materials
Compound semiconductors(Index)・Mobile market: Expanded information volume,
increased communication speed→high output
・Power conversion devices: Miniaturization, energy saving→high endurance, low loss

GaN epiwafers(GaN-on-Si, GaN-on-SiC, GaN-on-GaN)
Establish a leading position in markets
where growth is expected

GaAs epiwafers

GaN substrates

GaN epiwafers

300
200
100
0

Basic Strategy

GaN substrates
Strengthening our supply chain with thegoal of becoming a leading supplier

Compound Semiconductors Sales

400

Market Environment

GaAs epiwafers
Increase cost competitiveness

Create New Value

2012

2015

2018

Unified operations with SCIOCS Co., Ltd,
Improve efficiencies through the pursuit of synergies

Laser diode applications: Maintaining high market share
LED applications: Early stable production of 4 inch products

GaN-on-Si: Early commercialization
GaN-on-SiC: Global customer development
GaN-on-GaN: Development with a medium-to-longterm perspective

Accumulated epiwafer growth technology in our GaAs business
Expanded product lineup from our purchase of SCIOCS Co., Ltd.
Business Strategy for the IT-related Chemicals Sector

36

Contents

Create New Value

Overview of Our IT-related Chemicals BusinessBusiness Environment for IT-related Chemicals

Global Business Strategy
Development of Flexible Display Materials

Business Strategy for the IT-related Chemicals Sector

37

Development of Flexible Display Materials

Create New Value

Roadmap for the development of flexible display materials
OLED Display Trends

Rigid

2013

Bendable

2015

OLED panels using
glass-type touchscreen panel

Foldable

2017

OLED panels using
film-type touchscreen panel

Cover glass
Polarizing film

2019

Rollable

2021

2023

Flexible OLED panel

Cover glass

Window film

Polarizing film

Liquid crystal-coated polarizerFilm-type touchscreen panel

Flexible touchscreen panel

Sealing layer

Sumitomo Chemical barrier film

OLED

OLED

Barrier film

Barrier film

tics

Glass-type touchscreen panel

現状ＯＬＥＤパネル
Sealing glass
OLED

偏光フィルム Glass

Sumitomo Chemical products
Business Strategy for the IT-related Chemicals Sector

38

Development of Flexible Display Materials
化合物半導体材料事業

Create New Value

Roadmap for the development of flexible display materials
2018年～

Window film
Liquid crystal-coated polarizer

Flexible touchscreen panel
Sumitomo Chemical barrier film

OLED

Development and mass
production of each component
according to the timing ofcustomer mass production

Barrier film

Development by fiscal 2017

ウインドウフィルム

Multi-functional
materials
and components
フレキシブルタッチセンサー
液晶塗布型偏光フィルム

Sumitomo Chemical barrier film
OLED
Barrier filmContinue parallel developmentof multi-functional materials
and components, offer
performance improvements for
integration

Sumitomo Chemical’s Competitive Advantages
Materials development capability

Product development capability
and processing technology

as a diversified chemical company

acquired through display materials businessContribute to evolution and diffusion of OLED technology
Business Strategy for the IT-related Chemicals Sector

39Development of Flexible Display Materials
化合物半導体材料事業

Create New Value

Window film
Window film
Liquid crystal-coated polarizer
Flexible touchscreen panel
Sumitomo Chemical barrier film

High-level balance of surface component characteristics andflexible component characteristics through polymer molecular
design and process optimization

OLED
Barrier film

Characteristics
necessary for display
surface components

Characteristics
necessary for flexible
components

Other Companies’
Products

Our Products

Transparency

Transmittance

≤90%

>90%

Color tone

YI

0-5

1-2

Hardness

Pencil hardness

9H

9H

Surface accuracy

Apparent
reflectivity
Bending test (3R)

Good

Good

>200,000 times>200,000 times

Water absorption

2-3%

<1%

Bendability
Low characteristicchangeBusiness Strategy for the IT-related Chemicals Sector

40

Development of Flexible Display Materials
化合物半導体材料事業

Create New Value

Liquid crystal-coated polarizer
Window film
Liquid crystal-coated polarizer
Flexible touchscreen panel
Sumitomo Chemical barrier film

Adding characteristics of low thickness, flexible components
while maintaining the fundamental characteristics
of anti-reflective materials

OLED

Barrier film

Previous types

Characteristics
necessary for
anti-reflective
components
Characteristics
necessary for flexible
components

Color tone

NeutralLiquid crystalcoated type
NeutralBrightness

Transmittance

42-44%

40-48%

Anti-reflective
performance
Bendability

Reflection
from cells
Bending test (3R)

~0

~0

－

>200,000 times

Light leakage

Some light leakage

Thickness
Dimentional
stability
Business Strategy for the IT-related Chemicals Sector

95C 24Hr

>20μm

<10μm

Significant
shrinkage

Reducedshrinkage41

Development of Flexible Display Materials
化合物半導体材料事業

Create New Value

Flexible touchscreen panels
Window film
Liquid crystal-coated polarizer

Flexible touchscreen panel
Sumitomo Chemical barrier film

Providing the characteristics of thin, flexible components
on a variety of substrates while maintaining the characteristics
of an excellent touchscreen panel

OLED
Barrier film

Touchscreen panel
characteristics

Characteristics
necessary for flexible
components

Film-type(Existing products)

Flexible

10/10

10/10

Pattern visibility

Difficult to see

Difficult to see

Color tone

NeutralNeutralThickness

40μm-50μm<30μm

Curvature radius

3R

3R

Bending test (3R)－
Narrower>200,000 times
BroaderLine resolution

Bendability

L/S (μm)

Substrate selection

Business Strategy for the IT-related Chemicals Sector

42

Development of Flexible Display Materials
化合物半導体材料事業

Create New Value

Barrier film
Window film
Liquid crystal-coated polarizer
Flexible touchscreen panel
Sumitomo Chemical barrier film

Achieving both high water vapor resistance and flexibility.
Broader substrate selection, which can be applied
to a variety of uses.

OLED
Barrier film

Barrier characteristics

Water vapor
resistance

WVTR(g/m2/day)Other Companies’
Products
10-5

Characteristics
necessary for flexible
components

Bendability

Curvature radius

≥20R

≤10R

OpticalTransmittancecharacteristics
Substrate selection

88-89%

90-91%

Narrower

BroaderBusiness Strategy for the IT-related Chemicals Sector

Our Products
10-3-10-5(selectable)

43Creative Hybrid Chemistry

Thank you very much.

Business Strategy for the IT-related Chemicals Sector

44Change and Innovation

Cautionary Statement
Statements made in this document with respect to Sumitomo Chemical’s current
plans, estimates, strategies and beliefs that are not historical facts are forwardlooking statements about the future performance of Sumitomo Chemical. Thesestatements are based on management’s assumptions and beliefs in light of theinformation currently available to it, and involve risks and uncertainties.
The important factors that could cause actual results to differ materially fromthose discussed in the forward-looking statements include, but are not limited to,
general economic conditions in Sumitomo Chemical’s markets; demand for, andcompetitive pricing pressure on, Sumitomo Chemical’s products in themarketplace; Sumitomo Chemical’s ability to continue to win acceptance for its
products in these highly competitive markets; and movements of currency

exchange rates.

Corporate Business Plan

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