Notice of Business Transfer Involving Seiko Epson Corporation's Optical Device
Epson Toyocom Corporation today announced that the company's board of directors has approved a plan to take over the optical device business (excluding the eyeglass lens business) of Seiko Epson Corporation. The plan was approved at today's meeting of the board of directors. Details of the business transfer, which will take effect on April 1, 2006, are provided below.
Reasons for transferring the optical device business
Epson Toyocom's optical device business has leveraged its strength in areas such as optical low pass filters* (OLPF) for digital cameras and optical pickup components for DVD recorders to enter the market for liquid crystal projectors (including 3LCD) and expand its market share in recent years. Optical devices are positioned as one of the core businesses in Epson Toyocom's "3D strategy," a strategy designed to drive horizontal and vertical growth around timing devices, sensing devices, and optical devices.
Meanwhile, Seiko Epson's optical device business, which boasts expertise in optical components for 3LCD projectors, has steadily grown its unit sales volume. The business also possesses advanced technological capabilities in areas such as spherical lens processing and treatment, a byproduct of its experience in eyeglass lens design.
The optics industry is evolving toward shorter wavelengths, ultra-high speeds, and high bandwidths. These technological advances are driving increasingly stringent accuracy requirements, and the industry appears poised to plunge into a phase in which the consolidation of technology development will largely affect a company's market competitiveness.
In discussing future strategy for the optical device business from a Group perspective, Epson Toyocom and Seiko Epson reached the conclusion that the best way to maximize business value would be to efficiently utilize their combined markets, technologies, and development resources by merging Seiko Epson's optical device business into Epson Toyocom's optical device business.
* Optical low pass filter: An optical component for correcting photos taken with a digital still camera or digital video camera.
Reasons for transferring the optical device business
Epson Toyocom's optical device business has leveraged its strength in areas such as optical low pass filters* (OLPF) for digital cameras and optical pickup components for DVD recorders to enter the market for liquid crystal projectors (including 3LCD) and expand its market share in recent years. Optical devices are positioned as one of the core businesses in Epson Toyocom's "3D strategy," a strategy designed to drive horizontal and vertical growth around timing devices, sensing devices, and optical devices.
Meanwhile, Seiko Epson's optical device business, which boasts expertise in optical components for 3LCD projectors, has steadily grown its unit sales volume. The business also possesses advanced technological capabilities in areas such as spherical lens processing and treatment, a byproduct of its experience in eyeglass lens design.
The optics industry is evolving toward shorter wavelengths, ultra-high speeds, and high bandwidths. These technological advances are driving increasingly stringent accuracy requirements, and the industry appears poised to plunge into a phase in which the consolidation of technology development will largely affect a company's market competitiveness.
In discussing future strategy for the optical device business from a Group perspective, Epson Toyocom and Seiko Epson reached the conclusion that the best way to maximize business value would be to efficiently utilize their combined markets, technologies, and development resources by merging Seiko Epson's optical device business into Epson Toyocom's optical device business.
* Optical low pass filter: An optical component for correcting photos taken with a digital still camera or digital video camera.
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