I was appointed as a president of SUMCO Corporation on May 29, and it is my great pleasure to offer to our shareholders and investors of my first message.
The SUMCO Group rapidly expanded its operations centered on semiconductor wafers amid the worldwide economic boom that lasted for many years through last summer. With the global economic recession since last autumn, however, demand for semiconductors has shrunk dramatically and prices have dropped. With this, the SUMCO Group's business situation has reversed, and we now face a harsher business climate than we have ever experienced.
Under these circumstances, the SUMCO Group must conduct a radical review of its corporate framework and cost structure as quickly as possible with an eye to achieving the sound development of its business.
To overcome these hard times and return once again to a solid growth path, first we must urgently implement the policies already announced as our business restructuring plan, including reorganizing small-diameter wafer production and enhancing our solar wafer operations.
The silicon wafer industry, our main business area is a competitive market that experiences exceptionally harsh fluctuations. There is no doubt, however, that stable growth can be anticipated in this industry over the medium to long term, as the world economy grows. For the time being, the solar business will also experience difficult times of sluggish demand, but future growth in demand for clean energy is certain in world wide, so the solar business also has solid potential.
The SUMCO Group is a world leader in silicon wafer manufacturing, and I am confident that we can once again establish a solid operating base and achieve sustainable growth by further heightening our competitive edge using the technological and production know-how that we have cultivated since the early years of materials development for semiconductors and solar cells.
The entire SUMCO Group is committed to doing everything it can to achieve the sound development of its business, always taking a mid to long-term perspective, and I am convinced such development is within reach.
I look forward to the continued support and understanding of all our shareholders and investors.
June 2009
Yoichi Taguchi, President
