DISCO fulfills our social responsibility by contributing to semiconductor manufacturing, an industry that sustains society, through enhancement of our ability to adapt to change and provision of our advanced Kiru, Kezuru, and Migaku technologies.
In the fiscal year of 2020, the macro environment experienced heighted uncertainty with the spread of COVID-19. However, with in the semiconductor market, demand increased not only for smartphone applications but for a wide range of applications, such as PC, electrical appliance, and automotive, driven by the rollout of 5G and increase in amount of time spent at home due to the COVID-19 pandemic.
Within this business environment, shipment of our precision processing equipment remained high centering on Asia. Furthermore, due to high operation rates at customer facilities throughout the year, shipment of precision processing tools (consumables) also increased significantly.
With shipment levels remaining high, inspection/acceptance of precision processing equipment increased toward the end of the fiscal year, resulting in record high sales. Regarding profits and losses , SG&A increased because of active R&D activities, but with the significant increase in sales, record highs were updated for each type of profit starting with operating profit.
Regarding return to shareholders, based on the dividend policy, the dividend per share will be JPY 561 (JPY 677 in total for the year, a record high), which is the result after adding the dividend from the surplus funds to the performance based dividend.
With the US-China trade conflict and the continued worldwide threat of COVID-19 with its emerging variants, the external environment moves toward increasing uncertainty. However, as shown by demand related to COVID-19 self-quarantining and semiconductor shortages in the automotive sector, semiconductors are growing in importance.
In the mid-to-long term as well, we can expect increase in the population of global semiconductor users and expansion in semiconductor applications. Therefore, demand for our “advanced Kiru, Kezuru, and Migaku technologies,” indispensable to semiconductor manufacturing, can also be expected to experience steady increase.
In 2021, we plan to complete construction of the new building at Kuwabata Plant (Kure, Hiroshima) and will thus be able to secure the production space required for this growing semiconductor demand over the mid-to-long term.
In the midst of increasing instability in the external environment, by improving our ability to adapt to change and supply product and technology, in addition to fulfilling our social responsibility through semiconductor manufacturing sustaining social infrastructure, DISCO will continue to carry out and strengthen evolution and improvement activities while also cultivating a high-quality corporate culture for making the company stronger.
We deeply appreciate your continued support in the year ahead.
Kazuma Sekiya, Representative Director and President