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Management Policy

FY2023 Mid-term Management Policy

As of May 12, 2023

In the telecommunication sector, which the MegaChips Group is targeting where those that were not connected to the network are now connected, the development of communication technology has been progressing in response to the IoT era, such as improved transmission speed, reduced lag time, and the capacity to connect many devices simultaneously.

In the industrial equipment field, the industrial robots and various industrial equipment are becoming more important as the global need of automation and the digital shifts are rapidly progressing everywhere in our daily life including logistics and manufacture automation.

As a result, the growing need for high-performance and multifunctional electronic components used in the devices surrounding us in various fields has led to an increase in demand for LSI products as a key device that contributes to high precision, multifunctionality, compactness, and low power consumption.

Under these circumstances, the MegaChips Group intends to accelerate its medium- to long-term growth by strengthening its revenue base and concentrating its management resources on, in fields which are expected to grow in the future, including the industrial equipment, telecommunications, energy control, and robotics, while strengthening the foundation of the ASIC business, focusing on the amusement sector.

In addition, as our initiatives for sustainability, we will build a foundation for sustainable growth prioritizing development of human resources and promotion of diversity, respect for human rights, work environment improvement, environmentally friendly business activities, the creation of a sustainable supply chain, and specific social contribution activities in the electronics field.

  1. Strengthening of business foundation in our core business field
    In the ASIC business, which is our core business, we will strengthen the sales force by proactively promoting a customer-oriented and proposal-based business and strive to improve quality and develop innovative technology. We will also strengthen our business base by maintaining a stable supply and providing optimal solutions in response to customers’ needs by focusing on information coordination and securing a manufacturing infrastructure to fulfill our responsibility as a part of the supply chain.

  2. Fostering new business fields
    We will concentrate the deployment of our management resources, targeting the fields of industrial equipment, telecommunications, energy control, and robotics, where rapid market expansion is expected, to proactively launch excellent products into the domestic and overseas markets and promote sustainable growth by fostering new business fields. Especially in the telecommunication field, we will accelerate the launch of products for the wireless communication, high-speed wired communication and power-line communication based on the cutting-edge technology of business partners, as well as commercialization by focusing on the development of module products that integrate these products by developing domestic and overseas sales and production systems and allocating human resources.

  3. Initiatives to create new businesses for the future
    With a view to long-term growth, we will promote the collaborative research and development of cutting-edge technologies with domestic and overseas universities, we will bolster strategic alliances and business investments with startup companies, mainly in the U.S. through a CVC (corporate venture capital) fund. We will combine these technologies with our existing expertise that we have cultivated over the years, enhance values and create unique businesses.

  4. Strengthening financial position that supports medium- to long-term growth
    To support long-term growth through business structure transformation and the fostering of new businesses, we will maintain and strengthen our management base so that we can flexibly and quickly respond to changes in the business environment. As a safety index, we will enhance the ratio of net worth to total assets.

  5. Promoting human resource development and diversification and improving working environment
    To bring the best out of our human resources, we will promote the development of human resources and diversification and improve the work environment. As to the human resource development and diversification, we will expand on education system, such as job-level training and theme-based training, employ a wide variety of people through a year-round recruitment system, and enhance internship opportunities in our new graduate recruitment activities. We will also strive to create a comfortable working environment for all employees by conducting stress checks and workshops on women's health and encouraging employees to take paid leave.

  6. Addressing global environmental conservation and supply chain issues
    For global environmental conservation, the MegaChips Group will operate its business taking into consideration countermeasures for global warming and reduction of the environmental load. We will continue to strive to establish a sustainable supply chain by, among other things, requesting our manufacturing partners to comply with guidelines on the use of hazardous chemicals and to ensure compliance with emission standards for carbon-dioxide and toxic substances, while, at the same time engaging in eco-friendly office activities including the reduction of energy consumption and waste.

  7. Fostering engineers in the electronics field
    To support the younger generation, which is the foundation of Japan’s strength, we are dedicated to developing highly skilled human resources who will lead the next generation in the electronics field through donations to Japanese universities and joint or outsourced research, while, at the same time, promoting the creation of innovative technologies through research activities.
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