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creases washing power while keeping the drum clean. As a result, we were able to register stronger overall sales of our washing machines. 

Among the innovative products we introduced in response to user needs are a garbage processor with greatly reduced odor that can be stored indoors, a speedy dishwasher and dryer, and an IH cooking heater with an LED display showing heat intensity. In February 2002, we launched the “FEMINITY se- ries,” the first Bluetooth$^{TM}$-based wireless network for home appliances. Controlled by a portable PC, it really brings the advantages of the IT revolution in the home and points the way to the lifestyle of to- morrow. Products in the series, including a refrigera- tor and a microwave oven, have been on the market 

## SEMICONDUCTOR COMPANY 

The Semiconductor Company offers a broad array of products such as discrete devices, bi- polar ICs and memories, including NAND flash memories, with a particular emphasis on sys- tem-on-chip (SoC) solutions in which total sys- tems are realized on a single silicon chip. With these products, we are accelerating a rapid shift to our new Integrated Device Manufacturer (IDM) model, where different groups of products are linked to create an operating synergy that ad- vances our overall business. We make maximum use of the most advanced semiconductor tech- nologies and offer total system solutions, includ- ing software support, to promote technical in- novation and the development of all kinds of electronic equipment for the broadband age. 

since April. 

Since June 2001, we have developed a stra- tegic alliance with Sweden’s AB Electrolux. One as- pect of this has been our selection, sales and ser- vice of products that we think suit the Japanese lifestyle. Marketed under the brand name “Electrolux by TOSHIBA,” these products are enjoying increas- ing popularity. 

We see potential for positive growth overseas, especially in Asia. With that in mind, we established Toshiba Vietnam Home Appliances Co., Ltd. and forged technical alliances with major home- appliance manufacturers in China. These initiatives represent reinforcement of an Asian strategy that we are sure will produce growth in coming years. 

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## Electronic Devices & Components$^{SEMICONDUCTOR COMPANY President}$$^{TAKESHI NAKAGAWA}$ 

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The collapse of the IT market in the second half of fiscal 2000 continued to echo throughout the fiscal 2001, with no sign of the recovery widely ex- pected to emerge in the third calendar quarter of 2001. As demand for semiconductors remained ane- mic, suffering an unprecedented year-on-year decline of 32%, Toshiba saw dramatic declines in demand for discrete devices, memories and system LSIs. Sales of LCDs failed to reach forecasts, despite a slight recovery in demand for displays for portable PCs, monitors and cellular phones in the fiscal sec- ond half. Consolidated sales for the segment 

