Focus

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Electronics Business — A Key to Future Growth
Toyota Industries is confident that its Electronics Business has

production line that incorporates the Toyota Production

the growth potential to make it a main business pillar ofSystem (“TPS”) ensures that quality keeps pace with output.

future operations. We intend to allocate the necessary capital

Although the worldwide IT slump in the second half of 2001

and management resources to turn this potential into reality.

and the terrorist attacks on the U.S. in September of that year

We are also committed to pioneering new technologies anddrastically reduced demand in the electronics-related field, asbusiness models in the electronics field by vigorously

inventory readjustment proceeds and business picks up again

investigating opportunities for technological collaboration

within the IT industry, the demand for low-temperature poly-and capital participation.

Si TFT-LCD panels will increase.
Toyota Industries believes that the outstanding features ofthe low-temperature poly-Si TFT-LCD panel give it significant
potential to spur greater demand in the medium to long term.
ST-LCD is now producing the LCD panel for mainly digital stilland video cameras, and personal digital assistants (PDAs). Thepanels are supplied to customers through Sony. The lowtemperature poly-Si TFT-LCD panels are energy-efficient, andoffer high resolution as well as high numerical aperture. Theyalso 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 the display unit
allows the LCD panels to be used in a wide range ofapplications, including in-car monitors. They are also suitablefor 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-temperature poly-Si TFT-LCDpanels will increase further as their application in highdefinition displays extends to ever smaller, lighter mobilephones and PDAs.
Anticipating a sharp increase in demand for the panels
over the medium to long term, in the fall of 2001 ST-LCD

LCD BusinessIn October 1997, Toyota Industries and Sony Corporation
established ST Liquid Crystal Display Corp. (“ST-LCD”) as a 5050 joint venture. ST-LCD manufactures low-temperaturepolysilicon TFT-LCD panels. ST-LCD benefits from Sony’s
advanced LCD development technologies and Toyota
Industries’ superior quality control and manufacturing

invested ¥75 billion to establish a second production line, andincreased the capacity of its first production line. In total, STLCD has increased its monthly capacity to 32,000 base plates(600mm x 720mm). To help fund this investment, Sony andToyota Industries each injected ¥10 billion into ST-LCD,
increasing its capital to ¥50 billion. Looking closely andflexibly at the pattern of demand, ST-LCD plans to put thetechnologies.
Since our investment in ST-LCD is not a majority stake, wedo not include it as a subsidiary. Nevertheless, we consider STLCD as the core of our Electronics Business. Since it beganmass production in April 1999, ST-LCD has expanded
production to meet rising market demand. A uniquesecond line into operation sometime after the summer of2002. Sony, Toyota Industries and ST-LCD regard the lowtemperature poly-Si TFT-LCD as a key device in the field ofcompact displays, and are collaborating to develop andmanufacture superior products for further expansion of thebusiness.

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TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

Package Substrate BusinessToyota Industries entered the electronic substrate business

Joint Development
through Business Collaboration

through its subsidiary, TIBC Corporation (“TIBC”), a joint

We developed an ultra-compact radio tuner for AM/FM/

venture with Ibiden Co., Ltd. (“Ibiden”). TIBC manufactures ballteletext broadcasts jointly with Niigata Seimitsu Co., Ltd. asgrid array (BGA) plastic package substrates and flexible printed

part of a business collaboration agreement, and displayed thecircuit (FPC) substrates for smart cards. TIBC substrates areproduct at the Tokyo Motor Show in October 2001. Based on

supplied through Ibiden to IDMs (Integrated Device

advanced CMOS (Complementary Metal Oxide

Manufacturers) and IC packaging and assembly houses

Semiconductor), RF (Radio Frequency) and IC (Integratedworldwide for incorporation in a variety of electronics andCircuit) technologies, this is the world’s first radio tuner that

information devices.

incorporates both analog and digital circuits. In addition toTIBC suffered from the depressed business conditions offacilitating the design of ultra-compact car radio systems, this

2001, but as inventory within the IT industry was almost

product will enable mobile

cleared in the first half of 2002, the demand for TIBC’sphones and PDAs to receive radio

substrates is showing signs of recovery.

and teletext broadcasts, opening
the way for application in a wide

Technology Development Center

range of information devices.

Toyota Industries’ Technology Development Center develops
and manufactures power electronics parts for automobiles,and engages in research and development of various
electronics technologies. The Center also serves as Toyota
Industries’ R&D facility and its production base for a vast arrayRadio tuner moduleof electronics parts, so accumulating know-how in productmanufacture.
TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

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