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Management Strategy

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Management Strategy

Basic Management Policy

While gaining a stable management base by establishing businesses in the "winning field", DMP aims to become the world's leading "AI Computing Company" by expanding the business in the IoT*1/AI market, which is expected to grow significantly in the future. Balancing the research and development by talents with outstanding knowledge, experience, and passion and a customer-centered market approach, and providing the most advanced and optimal solutions for customers, DMP strives to solve social problems such as a declining birthrate, an aging population, and an accompanying increase in medical expenses, realize a safe and secure society, and improve corporate and shareholder value.

Business Environment and Competitive Advantages

In the semiconductor industry to which DMP belongs, demands for IoT, AI, big data, next-generation high-speed communication standards, and autonomous driving are expected to grow over the medium term.
In the AI field, which is the business area of DMP, there has been a competitive environment where entries from different industries and the movement of existing players to strengthen the business are remarkable against the backdrop of the expansion of the related markets. In the AI industry, there are many players such as consulting companies that provide supports on issues and strategies related to AI introduction, companies that specialize in providing AI algorithms and software, companies that undertake AI development from customers, and major cloud operators that provide development environments for cloud services and machine learning algorithms. Leveraging its consistent development system of AI algorithm, software and hardware, DMP deploys a unique AI business by offering products and services in three forms: IP, SoC/module, and professional (contract development) service.
DMP is focusing on a robotic vehicle area (low-speed autonomous vehicle, etc.) where the role of AI is most effective among the field of automatic/autonomous driving. It not only has a market size greatly exceeding that of the automobile (ADAS*2) but also contributes to solving social issues. Other focus fields/markets include safe driving support systems (driver monitoring system, near-miss analysis, etc.) whose demand is expected to grow.

In addition, DMP develops, manufactures, and sells graphic processors for the amusement industry (pachinko and pachislot machines). Although its market size is on a gradual decline, replacement demand to new regulation (type 6) machines is expected along with the complete removal of previous regulation (type 5) machines from 2020 to 2022 in accordance with a revision and enforcement in February 2018 of "Entertainment and Amusement Trade and the Implementation Rules for the Entertainment and Amusement Trades Rationalizing Act."
DMP's graphic processor "RS1" has a competitive edge in that it is the first in the amusement machine industry to integrate a real-time 3D engine and a high-performance, high-compression video engine on a single chip, enabling the beautiful and realistic image expression required for next-generation entertainment and contributing to the reduction of chassis cost of amusement machines as well.

Basic Management Strategies and Issues to be Prioritized

Based on the "Basic Management Policy" and "Business Environment and Competitive Advantages", DMP will work on the following basic strategies and priority issues for improving corporate (shareholder) value in its IP core license business, LSI product business, and professional service business.

  1. Expanding sales of next-generation graphic processor
    Leveraging its 18-year track record as one of the world's leading GPU IP vendors, DMP will strive to secure a stable management base by expanding sales of the next-generation graphic processor "RS1" that was developed in cooperation with BANDAI NAMCO Entertainment Inc.
    • Multi-platform development including amusement machines and arcade game machines
    • Expanding sales to become an industry standard platform through collaboration with channel partners
  2. Deeply cultivating the IoT/AI market by strengthening AI solutions
    DMP will strive to cultivate the ever-growing IoT/AI market by leveraging its strengths of having a consistent development system for AI algorithm, software, and hardware.
    • Strengthening lineup of AI products (IPs, modules, etc.)
    • Deeply cultivating growth markets (safe driving support systems, robots, unmanned vehicles, medical care, etc.) where DMP can utilize its strengths
    • Strengthening AI ecosystem and solution provision capabilities through alliances with partner companies
  3. Creating new values for further growth
    By creating new technologies and products and market development, DMP aims to create new values for sustainable growth.
    • Creating disruptive technologies and products leveraging core technologies, 3D graphics/AI technology
    • Developing and monetizing new businesses and overseas market
*1 IoT
Abbreviation for Internet of Things. A mechanism in which various "things" in society not limited to information communication devices such as personal computers, smartphones / tablets, and game consoles are connected to the Internet and control each other by exchanging information, realizing automatic recognition, automated control, and telemetry.
Abbreviation for Advanced Driver Assistance System. A system that detects and avoids the possibility of an accident in advance in order to improve the safety and convenience of vehicles, assisting some or all of driver's recognition, judgment, and control.