YAMAHA CORPORATION ANNUAL REPORT 2000

REVIEW OF OPERATIONS
Net Sales
(Billions of Yen)
108.8
’96
120.5
’97
130.0
’98
79.9
’99
60.8
’00
Operating Income (Loss)
(Billions of Yen)
18.8
’96
12.3
’97
5.4
’98
-28.4
’99
-18.1
’00
150
Major Products & Services
•Electronic devices
•Semiconductors, specialty metals
Major Subsidiaries
•Yamaha Kagoshima Semiconductor Inc.
•Yamaha Metanix Corporation
A display of mobile phones and a
YMU757 sound generator IC with
4-note polyphony for mobile phones
0
30
0
Electronic Equipment and Metal Products
In semiconductors, sales of YAMAHA’s large-scale integrations (LSIs)
10
increased due to expanded use in home video game unit and arcade game
machine applications. The Company also created a major hit product with the
release of its LSI YMU757, a four-note polyphony FM chip for mobile phones
that produces high-quality ringing tones.
Although we attempted to remedy the ailing storage heads business through
restructuring initiatives, owing to plummeting sales prices and the high capital
investment burden, we determined that we were unlikely to achieve future
improvement in earnings. Withdrawal from the business was decided upon in
November 1999, and production was halted in March 2000. This action resulted
in a substantial decline in sales.
In electronic metallic products, demand for copper and nickel lead frames
increased due to the spread of PCs and mobile phones. Sales also increased
accordingly.
As a result of these factors, net sales for the segment declined 23.9%, to
¥60.8 billion (US$0.57 billion); however, operating loss improved ¥10.3 billion,
to ¥18.1 billion (US$0.17 billion).
Over the next term, considering the enormous demand for mobile phone
melody devices and amusement-related products, we anticipate our LSI semiconductor
products to continue to produce favorable results. The alloy and mobile
markets for electronic metallic materials and lead frames are also expected to
remain strong, and YAMAHA will strive to roll out its cathode-ray tube (CRT)
inverter materials, which it will position as its next mainstay product.
Lead frames for semiconductors