Message from the President
President & CEO
I want to begin by expressing my sincerest gratitude to our shareholders and investors. At present, the novel coronavirus COVID-19 epidemic has had various negative effects on people’s daily lives and on social and economic activities in an environment that continues to require caution. Although not yet up to full scale, we have resumed operations at our Chinese subsidiary. We are complying with the instructions and guidance of supervisory authorities, and will respond flexibly and diligently as we engage in business activities with the health and safety of our employees and affiliates as our first priority.
We are a research-oriented chemical manufacturer specializing in development, manufacturing, and sales of special industrial chemical products. Our products enable increased functionality and improved productivity for the electronic substrates and components that support 5G communications networks and a wide range of electronics sectors that support the IoT and AI. We have engaged in business activities that meet the needs of global markets.
Our base technology includes the following:
1.Metallic surface roughening and molecule fusion for resin adhesion enhancement
2.Etching for the microfine wires used in displays, semiconductor packages, and ultra-high density interconnected wiring boards
3.Etching technology and dissimilar-material fusion technology compatible with various metals including nickel and aluminum
We will continue to strengthen our R&D and marketing capabilities by collecting, analyzing, and applying the data necessary for the efficient development of these technologies in order to provide the world with the technology it needs.
We conduct manufacturing and sales out of subsidiary plants established in Taiwan, China, Europe, and Thailand. To meet the needs of the customers in each region, we also provide a broad range of technology services through these subsidiaries. Our Group’s global network in Asia includes four subsidiaries in Taiwan, China, and Southeast Asia while our Japan main office covers operations in Korea and Japan. Furthermore, our European subsidiary and the Japan main office partner to provide coverage for America and Europe, an important center of information distribution. Research and technology development activities are mainly conducted by the Japan main office, which works to ascertain the needs of each region. To capture demand in Southeast Asia and increase profitability in regions other than China, in May 2017 we established a subsidiary in Thailand and began production in September 2019.
The electronics industry has seen a slowdown in smartphone demand growth and signs of a slowdown in automotive-related sectors. There is also concern of the impact of US-China trade friction on the global economy. On the other hand, in the near future the permeation and integration of IoT and AI is expected to drive a significant increase in demand for the servers, sensors, and memory needed to conduct data gathering, accumulation, and analysis. The increased speeds resulting from the dissemination of 5G is expected to stimulate further advancements. This will accelerate the development of autonomous vehicles and the commercialization of remote medical care, marking the start of a paradigm shift in society.
Through various innovation processes, we work to accurately identify latent needs and proactively engage in creative technology development. Through this process, we are creating and nurturing the seeds that will contribute to the commercialization of innovative technology. As we continue to provide high-quality products and technology services, we will continue to identify global trends and work to generate latent demand in the electronics industry, related industries, and potential new business domains.
Looking at our chemical products, demand for our CZ Series, an adhesion enhancement agent widely used on the package substrates mounted on semiconductors, has increased for use in memory, sensors, processors, and applications such as advanced driving assistance systems (ADAS), which require a high degree of reliability. The EXE Series, has captured a high share of the market for the high-density micro-wiring IC packages used in flat screen TVs. Also advancing favorably is product development for an adhesion enhancing agent based on molecular binding. This agent enables a smooth surface without the need for surface roughing to respond to the increasing speed of information transmission. This product is being adopted in the high-speed transmission sector and will grow to become an essential chemical process for this sector.
We will continue to engage in daily operations based on medium- and long-term growth strategies without being swayed by short-term market sentiment. We will inject new products and improve on existing products for the constantly growing internet infrastructure market and connected devices such as cars, displays, and a smartphone market that requires the high-volume production of high-function models. We are proactively working to adopt the diverse perspectives of talented human resources, regardless of gender or position inside or outside the Company, as we strive to contribute to society and increase our corporate value.
We will maximize the potential of the Amagasaki Business Factory, an integrated center for research, a production plant, sales, and main office functions, to develop new technology that enhances business development. In doing so, we will accelerate product development and improvements, improve our customers service by providing stable quality, increase our awareness of environment and safety, achieve work-life balance, and promote increased imagination and creativity of researchers in a new work environment.
Every member of the Mec Group is committed to earning the support and meeting the expectations of our shareholders and investors. We ask for your continued support and guidance.