Business Outline

No.1 in the world in mass flow controllers

Mass flow controllers, essential components in semiconductor manufacturing equipment, are the mainstay products for HORIBA’s Semiconductor Instruments & Systems segment. We have a leading 45%(*) market share for these products. We will continue to provide highly functional, miniaturized products that answer the ever increasing needs for improved productivity and high per formance in semiconductor manufacturing processes. (*HORIBA’s estimate)

2011: Respond to a surge in demand thanks to an increase in production capacity

In 2010, HORIBA posted record-high segment sales and earnings thanks to increased spending for manufacturing processes to miniaturize semiconductors and investments in LEDs (light-emitting diodes) and other new markets, which began to recover in the second half of 2009. In 2011, we anticipate continued investment in manufacturing equipment for semiconductors, LEDs and solar cells (photovoltaic), and expect steady growth in sales for mass flow controllers and chemical concentration monitors. However, we forecast that the operating income ratio will be lower due to the appreciation of the yen and competitive pressure on sales prices.

New Mid-Long Term Management Plan: New product capabilities to satisfy new markets and new applications

We have developed products for various applications such as mass flow controllers and chemical concentration monitors that are used in the semiconductor wafer cleaning process. HORIBA’s strength lies in its line-up of products that respond to the needs of unique markets. Recent examples include photovoltaic, which are receiving great attention in many countries as a recyclable energy source, and LEDs, which are a promising product as a next-generation light source.

Expand sales in Asia, supported by strong trust of semiconductor makers

HORIBA’s service strength is its capability to support customers in Asia. Our strategy is to expand our market share by gaining more credibility from manufacturing equipment makers of semiconductors, photovaltaics, and LEDs, and by making enhanced quality products that satisfies the rising demand from customers. In addition, we will start producing mass flow controllers at Beijing HORIBA METRON Instruments Co., Ltd., a joint venture established in Beijing, China. We plan to establish its position in Asia, where demand is rising.

Product Applications

Control of gas flows and monitoring of cleaning fluid concentrations in semiconductor manufacturing processes, semiconductor and LCD quality control inspections

Major Customers

Semiconductor production equipment manufacturers, semiconductor device makers, semiconductor cleaning equipment manufacturers

Principal Product

Mass flow controllers, chemical concentration monitors, thin-film analyzers for semiconductors and LCD inspection, reticle/mask particle detection systems, residual gas analyzers

Products overview

Main Risk Factor

Significant fluctuation in demand caused by the “silicon cycle” in the semiconductor
industry and investments related to solar cell and other energy sources

Share of Net Sales

Net Sales and Operating Income Ratio