Omron Corporation will establish a design center tentatively named the Hong Kong Design Center in Hong Kong Science Park (Pak Shek Kok, Shatin, New Territories, Hong Kong, http://www.hkstp.org/) to handle LCD backlight design and development. Initially it will concentrate on design/development of compact size backlights for mobile phones aimed at the China and Taiwan markets. Omron plans to begin operation of the design center from July 1, 2004 with a 10-person structure utilizing locally hired employees. Omron also plans to prepare a design/development framework positioned as a design center in FY 2005 for large size television backlights aimed at the China and Taiwan markets.
Revenues from Omron’s total backlight business (small to large size) are expected to be about 300 billion yen in FY 2006, with approximately 20% attributed to design and development at the new Hong Kong Design Center.
Determining factors for advancing into Hong Kong Science Park are as follows:
- Located near Omron’s mobile phone backlight production base in China, utilization of production infrastructure and speedy transition into trial development and manufacture will be possible.
- Easier transfer of engineers to Taiwan, China, and Japan
- Take advantage of abundant resources at local universities and employment of local engineers
- A high quality development environment supported by the Hong Kong Government and shared use facilities inside Hong Kong Science Park are available, reducing capital expenditure to the very minimum
Overview of Omron’s Backlight Business in China
Omron’s mobile phone backlights are primarily targeted at the color mobile phone market and aimed at a China market that will expand exponentially hereafter. Although presently Japanese makers have taken the lead for color LCD’s in the China market, in FY 2007 production by Taiwanese LCD makers is anticipated to triple and that of Chinese LCD makers to increase tenfold.
In view of these market conditions in Taiwan and China, Omron resolved to set up a customer-oriented design/development capable design center in Hong Kong concentrating on local engineers. As a base for dealings with Taiwanese and Chinese LCD makers, mobile phone makers, and design houses, Omron will develop and offer standard products responding to local needs. Moreover, as a manufacturing strategy, this will be performed as in the past with outsourced local procurement/local production as the basis.
Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the field of automation. Established in 1933 and headed by President and CEO Hisao Sakuta, Omron has more than 23,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components, social systems (ticket gate machines, ticket vending machines, cash dispensers, and traffic control), and healthcare. The company is divided into five regions and head offices are in Japan (Kyoto), Asia Pacific (Singapore), China (Shanghai), Europe (Amsterdam) and US (Chicago). For more information, visit Omron’s Web site at www.omron.com
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