: Has these facilitiesProduction flowEuropeChinaSouth KoreaJapanU.S.Main applicationsGraphite materialsProcessingPurificationCVD SiCGeneral heat-resistantapplicationsSemiconductorsHigh-endSolidSiCTrends toward further miniaturization and higher integration of semiconductors have led to demand for greater durability in etching-equipment components. Demand for these components, therefore, is shifting away from those made of silicon and quartz, which account for 80% of the market, and toward components made of extremely durable SiC. Solid SiC focus rings made by Tokai Carbon Group are highly rated by major manufacturers of semiconductor manufacturing equipment, and we expect demand for them to remain strong going forward.Business Results Overview and OutlookIn 2018, net sales rose by 75.8% year on year, to ¥25,403 million, and operating income grew by 229.9%, to ¥5,735 million.In 2016, the Fine Carbon Division embarked on structural reforms, such as a production capacity reduction, and greatly improved the quality of its earnings as a result. In June 2018, Tokai Carbon added Tokai Carbon Korea Co., Ltd. to the consolidated group. This made Tokai Carbon Group the world’s largest manufacturer of CVD SiC products, in terms of manufacturing capacity, and put in place a platform for pursuing further growth opportunities. Solid SiC focus rings and other high-value-added CVD SiC products have high strategic significance for Tokai Carbon Group. Plans for this division are aimed at business growth in line with market expansion.Facilities at Tokai Carbon Group SiC Product Manufacturing SitesBusiness results and forecastAdding Tokai Carbon Korea Co., Ltd., a Major Supplier of Solid SiC products, to the Consolidated GroupFocus ring material transition(Year)19902020201820102000Glassy CarbonSilicon, QuartzSiCOutstanding strength, heat resistance, and plasma resistance20192018201714,4471,73825,4033,71533,2007,000020,00010,00030,00040,00006,0003,0009,00012,000forecastOperating incomeNet sales(Year)(Millions of yen)(Millions of yen)*1 The 2019 operating income forecast does not reflect internal adjustments.*2 Operating income for 2018 has been adjusted retrospectively as of March 31, 2018.27TOKAI CARBON ANNUAL REPORT 2018Vision and StrategySustainability ReportFinancial ReportData SectionBusiness Report
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