Research & Development Vision and Policy

Based on its medium-term Research & Development policy, the Fuji Electric Group is pursuing further “selective and focused research & development” and promoting “the reinforcement of technological capabilities and the strengthening of medium- to long-term endeavors in basic research” with the aim of “generating high market share, high revenues, and products that produce high earnings.” Specifically, Fuji Electric works to refine distinctive core technologies based on electrical and machinery technologies and to upgrade technology development and basic research to accelerate the launch of distinctive products. At the same time, we invest strategically in key product categories that support the core business of the Group.

  In order to become the industry’s foremost specialist in all fields where we are active, we have created a roadmap for business and technological development over the medium term. We also seek to improve the efficiency of investment in Research & Development by selecting research areas that are consistent with our product strategies. Additionally, we are accelerating Research & Development programs by forging strategic alliances with universities and other companies. Fuji Electric Advanced Technology Co., Ltd. is the Group’s dedicated Research & Development company. It focuses on the development of basic technologies, technologies for new products and businesses, technologies for core product categories, and new production technology. In addition, it is concentrating on creating a technology platform that includes the Group’s common core technologies in electronics and embedded systems technologies. Meanwhile, each operating company is focusing on its own new product development. Fuji Electric Advanced Technology is working closely with each operating company, ultimately helping to maximize the corporate value of the Fuji Electric Group.

Policy and Strategy for Intellectual Property Activities

Fuji Electric Holdings Co., Ltd, the Group’s holding company, core operating companies, and Fuji Electric Advanced Technology Co., Ltd. have adopted a shared strategy of improving patent portfolios. Based on this strategy, each company works to 1) strengthen their patent portfolios by acquiring the rights to their effective patents, 2) reduce risk related to conflicts over patents by researching patents held by other companies and avoiding infringements, 3) promote the utilization of patents surplus to requirements by databasing all effective patents held, and 4) establish a framework for the management of balanced patents for mainstay products.

Research & Development Policy

Development Results From New Business and Core Technologies

In phosphoric acid fuel cells (PAFCs), our 100 kW units, which we started selling in fiscal 1998, all reached durability limits of 40,000 hours in operating time, which was the initial target. Furthermore, at some sites, units that have been overhauled remain in operation and have exceeded 77,000 hours of operating time. In 2006, we started selling units with a design life of 60,000 hours, and at present, the Group is striving to increase the uptake of 100 kW PAFCs by using its combined strengths to develop nextgeneration products designed to be more compact and reduce costs.

  In polymer electrolyte fuel cells (PEFCs), we have developed a 1 kW prototype unit for residential use, and we conducted tests to verify durability and reliability from fiscal 2005. As a result, we have set targets for commercialization and are continuing to assess PEFC operation using demonstration units. Our commercialization targets entail achieving a tenyear operating life comprising 40,000 hours of operating time, during which the PEFCs can be switched on and off 4,000 times. In addition, we are taking part in a national project, where we are contributing to efforts aimed at reducing the cost of PEFC peripheral equipment and gaining greater insight into the processes at work inside PEFCs during operation.

  Our efforts to develop full-color organic EL panels have resulted in the development of an active matrix drive panel* with a screen size of 2.8 inches, a pixel count of 240 (RGB) × 320, and a brightness of 150 cd/m2. The panel, which utilizes the color conversion material (CCM) system, has been shown to perform at the level required for mobile device displays. In addition, we have realized a manufacturing method that bonds Fuji Electric’s proprietary CCM substrate, made using ink-jet printing, with a blue monochromatic organic EL substrate that is easy to manufacture in large volumes. This constitutes a further advance in the development of technology to produce larger panels at lower cost.

  In core technologies, we took action to speed up and increase the efficiency of product design and development by constructing a technology platform (technologies that underpin our other technologies) consisting of the Group’s common core technologies in electronics, embedded systems, and other such fields, with the results spread across the Group. We continue to expand and upgrade this program and to broaden its scope of application.

* Active matrix drive panel: A method of display that enables the signal to be selectively switched on or off by means of “active” switching elements in each pixel of a display. The advantages of this method are high contrast and fast response.

R&D Framework (As of April 1, 2008)