ANNUAL REPORT 2004 - ELMOS Semiconductor AG

MANAGEMENT BOARD ELMOS – THE COMPANY THE ELMOS SHARE CORPORATE GOVERNANCE
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ELMOS remains niche
supplier of customer specific
automotive semiconductors
Share of electronics per car
generates further
growth of our market
ÿ Outlook report
ELMOS will keep focusing on customer specific applications for the automobile in-
dustry as a niche supplier. The ELMOS technology, the ELMOS design, and the produc-
tion in ELMOS manufacture are the solid pillars of this strategy.
The successful automotive ASIC business is going to be completed by the increased
marketing of application specific mechatronic modules combining ASICs, sensors,
and functional packages, with patented technologies if applicable. In addition ap-
plication specific standard products, usually based on previously developed ASICs
and aiming for demand by several customers, are intended to expand the product
portfolio.
It is another objective of the ELMOS Group to increase the sales proportion on faster-
developing markets besides the automotive market in order to use those markets as
innovation drivers. Geographically speaking, ELMOS strives for a penetration of the
North American market and in the medium term an increased expansion in the Asian
market.
Stagnation of the worldwide semiconductor markets is generally assumed for the
year 2005. However, significant changes in worldwide demand for semiconductors in
the automobile industry are not expected. The numbers of new automobile registra-
tions will not carry surprises and follow the prior year numbers essentially. Owing to
the continuously increasing share of electronics per car, the market for automotive
semiconductors will keep growing. An increase by eight to nine percent is expected
for automotive semiconductor chips until 2010.
This is underlined by a well-filled product pipeline due to the design wins of recent
years and the satisfying incoming orders for 2005 despite a dropping book-to-bill
ratio in the second half-year of 2004. A higher delivery volume corresponds with an
increased utilization of production capacity in Dortmund destined to lead to a fur-
ther improvement of the profit situation.