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Since its establishment in 2002, the NEC Electronics Group has been expanding its operations on a global scale, based on our mission to contribute to society through our semiconductor products. In the latter half of fiscal 2009, however, the global economy suffered an unprecedented large-scale recession. This recession has seriously affected our customers' sales figures and has caused customers to reduce, and in some cases halt, production. This has in turn led to a dramatic drop in demand for semiconductors, leading us to operate in an extremely difficult business environment. To turn things around, we need to enhance the quality of our business. But at the same time, in our effort to expand business, we must not forget our corporate social responsibility. It is vital that we reconfirm what we need to do to help build a sustainable society. Semiconductors can play a central role in this. By providing semiconductor solutions based on advanced technologies, we can help preserve the global environment—a pressing issue that is facing us right now—and realize a society that is safe and secure.
Even before we became independent in 2002, we realized that preserving the environment was directly linked with achieving sustainable business development. We have constantly looked for ways to reduce the environmental impact of our manufacturing operations, while providing products that are energy efficient and highly reliable. Our semiconductor products are used in a wide variety of applications throughout the world. By providing environmentally sound products, we can help create a society that is friendly to the environment. The United States and other countries around the world have recently been talking about a Green New Deal and how it will create new markets and give rise to new business opportunities. Central to the Green New Deal concept is the creation of smart grids, next generation electricity networks that use information technology to optimize energy use. Semiconductors with communication features will prove to be a vital tool in creating these grids. NEC Electronics can play its part in building an environmentally friendly society by providing optimized semiconductor solutions that pave the way to opening up this new field of business.
We are also fully committed to ensuring that society is safe and secure. In the automotive field, we developed IMAPCAR, a parallel processor for image-recognition applications in automobiles. IMAPCAR can be used to develop collision-avoidance systems, and has already been applied in numbers of areas. We have also developed a new technology that allows semiconductors to recover automatically from failures. By applying this technology in fields where high quality and reliability are essential, such as the automotive, medical, and industrial robot fields, we can contribute to making a safe and secure society.
We feel that every person in the world has the right to live in a society that is safe, secure, and convenient. With this in mind, we are always looking to develop and produce products that meet people's needs at a low cost.
Our corporate social responsibilities extend beyond supplying products and contributing to society. CSR is an important part of all our daily business activities. In March of 2008, we joined the United Nations Global Compact, an extensive global corporate citizenship initiative and agreed to carry out business with corporate social responsibility. Our participation marks our commitment to incorporating the ten principles outlined in the Global Compact in the areas of human rights, labor standards, environmental protection and anti-corruption. The NEC Electronics Group believes that strict observance of these ten principles can not only improve its corporate value but also encourage the personal growth of all our employees at the same time. Through our CSR activities, we can enhance our commitment to corporate social responsibility and become a better corporate citizen.
This report reflects our achievements in the fields of CSR and environmental preservation in fiscal 2009, as well as our hopes and goals for the future. We value this opportunity to communicate with our stakeholders and strengthen our relationship of trust. We promise to continue building on these relationships and further raise our corporate value.
Junshi Yamaguchi, President and CEO
NEC Electronics Corporation
September 2009