Business Strategy and Sustainability
The Company Vision, “What and how we want to be”
ROHM's Founding Philosophy of CSV in Relation to SDGs
Since its foundation, ROHM has contributed to cultural advancement through its products based on company mission. In 2020, we formulated “Management vision” to reaffirm this unchanging company mission and to clarify our mission in the new social infrastructure.
Based on the idea that sales itself indicates the total amount of contribution to the society, this management vision incorporates the determination to maximize social contribution through significant sales growth.
We also established “The ROHM Group Environmental Vision 2050” in April 2021, aiming for virtually Zero CO₂ emissions and zero waste emissions through the Three Pillars of “climate change", "resource recycling" and "coexistence with nature”.
Moreover, in May 2021, we formulated “MOVING FORWARD to 2025”, our medium-term management plan and re-identified our sustainability priority issues. This is a five-year plan aimed at building a solid management foundation in anticipation of dramatic growth in 10 years' time.
In both financial and non-financial aspects, ROHM will strive to achieve the KPIs related to the sustainability priority issues identified, to realize ROHM's vision and the sustainable growth of society.
- Management Vision
- We focus on power and analog solutions and solve social problems by contributing to our customers’ needs for "energy saving" and "downsizing" of their products.
[What and how We Want to be]
- ・We intend to be a company that solves social problems
- Based on our company mission of “Quality is our top priority at all times” and “…contribute to the advancement and progress of our culture”, ROHM intends to be a company that solves social issues such as ESG by contributing to our customers’ needs for “energy saving” and “downsizing”. For this purpose, product development, production, and sales will work together as one to exceed customers’ expectations with highly improved power and analog performance matching technology. Under all circumstances, we will keep challenging the world's best technology and businesses without being afraid of failure, with the entrepreneurial spirit that we have had since the establishment of the company.
- ・We intend to be a company where employees work enthusiastically by improving their contribution to humanity and intelligence
- In order for ROHM to be a company that solves social issues, ROHM will support a diversified work style, and broadly look for and develop talented human resources so they can be the foundation of company’s growth.
As part of its business activities, ROHM Group has been working toward resolving energy problems and other social issues under the concept of "Creating Shared Value (CSV)", which expresses our goal of resolving social issues while enhancing corporate values. The idea of CSV is nothing new to ROHM. It has been at the core of our business since the company's founding, as stated in our Company Mission introduced at the beginning. Although the size of the company and our business environment have changed substantially over more than 60 years since ROHM was established, the spirit of CSV has been passed down over generations and become woven into our corporate DNA as an underlying principle.
SDGs are now a driving force of CSV. We believe that we can better satisfy our stakeholders and widely contribute to society when every one of our employees acts in accordance with the Company Mission and the Basic Management Policy and pursues CSV by developing innovative products that help resolve social issues and by producing high quality products. Over the long term, this will enhance our employees' confidence and pride and motivate them to take on new challenges, thus driving both the company and society to grow.
For the Sustained Development of Society and ROHM Group
It is now ten years until the deadline for SDGs established to be achieved by 2030. The world is still faced with social issues such as global warming, major natural disasters caused by climate change, food and water shortages, and human rights problems, and some issues are more serious than ever. Amid strong calls for innovations to resolve these social issues around the world, the novel coronavirus struck a severe blow to society as a whole in 2020. This threat not only caused serious damage to industry as a whole, but is still putting the world through turmoil such as transforming the form of social life. ROHM is no exception. Temporary limitation and slowing of production operations and product supply in overseas locations have caused substantial inconvenience and social loss to customers.
We must see these events to be great lessons, and become a company that is able to protect its employees and enduringly provide value to society even in the event of an unprecedented situation such as this pandemic. In order to become a “company that solves social problems” and “a company where employees work enthusiastically by improving their contribution to humanity and intelligence” as stated in the Management Vision, we will take steps to strengthen functions and realize and establish a corporate culture for resolving the following management issues over the next two years.
[ROHM’s Management Issues]
- Fostering a Corporate Culture that Encourages Challenges and Establishment of a Workplace Environment for Promoting this
- Development of New Products that Increase Added Value for More Customers Centered on Power and Analog Solutions
- Improvement of Quality through Manufacturing Reforms
- Building BCM Able to Respond to a Variety of Crises through Overall Optimization of the Supply Chain
1. Fostering a Corporate Culture that Encourages Challenges and Establishment of a Workplace Environment for Promoting this
In order to become a company that solves social problems, we must be a company where every single employee working in ROHM Group is able to work vibrantly. It is "people," along with their sincere, uncompromising attitude toward every quality or environmental issue that underpins every part of our corporate activities. The phrase “refine intellect and humanitarianism, hence contributing to society” in our Basic Management Policy expresses the essence of this idea. In addition, the human capital referred to here means employees who not only seek knowledge and expertise, but also have refined humanity such as morality, aspiration and modesty.
In order to secure human capital with such balanced spirit, technique and physical condition, it is important to not only develop human capital, but also establish a friendly working environment where each employee with various lifestyles and in various stages of life is able to produce results. ROHM Group will foster a corporate culture of continuing to boldly face challenges without fear of failure in all workplaces and actively promote a variety of work styles including working from home to respond to the new normal.
2. Development of New Products that Increase Added Value for More Customers Centered on Power and Analog Solutions
By utilizing the “power” and “analog” technologies that are ROHM’s strengths, we will develop, manufacture and provide new products with added value to more customers. As technological innovations advance to significantly reduce environmental impact and pursue safety, ROHM Group has increased sales to the domestic automobile market by focusing on automobiles and industrial machinery. In future, it will be necessary to respond to more customers’ needs more than ever in overseas automobile markets and industrial markets including 5G equipment and servers. In addition, we believe it is essential to develop Application Specific Standard Products that can be used by a wide range of customers in order to achieve this. We will realize a development system for quickly planning products required by the market by anticipating market needs through the creation of a system for close contact with customers centered on application proposals by strengthening our organization. Furthermore, in overseas markets, we will strengthen sales through distributors and digital marketing, develop customers in potential markets, thoroughly improve efficiency of the logistics control systems including overseas sales companies and warehouses, and strengthen product development and sales in the industrial machinery area.
3. Improvement of Quality through Manufacturing Reforms
Since the company was founded, we have sought to continue placing importance on “quality first”, and focused on addressing and strengthening quality, safety and production. However, the attendance rate has declined significantly in various regions due to the impact of novel coronavirus, and the production format dependent on people becoming a new business continuity risk has brought to light issues in the supply chain of ROHM Group such as ensuring information management and traceability of the supply chain as a whole.
One part of this is improvement of quality through manufacturing reforms. In future, we will introduce flexible production lines to respond to diversifying demand and ensure high quality of products in the development and design phases by building a front-loading development system (with strengthened upstream design capability). Furthermore, we will proceed with the improvement of productivity and automation of labor-saving assembly processes, and strengthen our system enabling the continuation of production in emergencies such as the current coronavirus.
4. Building BCM Able to Respond to a Variety of Crises through Overall Optimization of the Supply Chain
Another is overall optimization of the supply chain. Moving forward, we will build a system enabling comprehensive management of all suppliers surrounding ROHM Group from the perspectives of quality, safety, the environment, human rights and BCM, and also optimize the overall supply chain such as actively utilizing foundry (outsourcing of the front-end) and OSAT (outsourcing of the back-end such as assembly and testing).
Key Sustainability Issues(Sustainability Priority Issues) Necessary for Realizing Medium-term Management Plan
Achieve growth in “Automotive Segments”, “Market outside of Japan”, and build a foundation for further growth are the vision for FY2025 in “MOVING FORWARD to 2025”.By making full use of our strengths, ”Matching technologies (development capability to maximize value by integrating elemental technologies), ”IDM (emergency response capability, rigorous quality control, stable supply and cost competitiveness)”, “customer orientation (solution proposals from the customer's point of view)” and “wide range of products (comprehensive capabilities from passive components to power devices and LSIs)”, we will achieve significant growth in power and analog, mainly in automotive segment and markets outside of Japan.
Moreover, to Strengthen our profit structure of General-purpose devices and Consumer LSI’s, we will achieve qualitative transformation including shift to higher value-added products and market outside of Japan. In addition, we will plant new seeds for growth for FY2025 and beyond.
[Main Growth Strategies]
- LSI: Expand entry into overseas vehicles by strengthening products for electric vehicles, and maintain consumer sales with miniaturized and highly efficient products.
- Semiconductor element:
(Power) Aim for a 30% share of the SiC market by utilizing technological capabilities, supply responsiveness, and production capabilities.
(General-purpose) Accelerate high added value through miniaturization, etc., and maintain top share and high profitability.
- Module: Focus on the development and provision of autonomous driving support modules and sensing device products for security (authentication).
In addition, we will develop sales and marketing structures to increase sales outside of Japan as an initiative for foundation supporting our growth strategy.
Strengthen product development structure capable of creating products that can compete in the global market through high-quality product planning by PMEs* with a thorough understanding of customer issues and precise response to customers' needs by strengthening collaboration between the specialized organization that conducts solution proposal, technical support and sales are key measures. Another theme is strengthening manufacturing. We accelerate productivity improvement, manufacturing reform aimed at and automation of assembly process, zero-defects, and complete automation. Moreover, Key Sustainability Issues(Sustainability Priority Issues) and KPIs that we have re-identified this time are key management issues that will lead to the achievement of the goals of the medium-term management plan and eventually ROHM's corporate growth.
We have identified ten issues that are critical to ROHM Group, including developing human resources and reforming governance for sustainable growth and governance-related reforms, and the creation of supply chains to fulfill our social responsibilities, as well as targets related to climate change issues that pose a major threat to global survival and business continuity.
Going forward, we will advance initiatives to achieve the targets for each issue, and report on our results, remaining issues, and progress toward achieving the targets on an annual basis.
- *PME (Product Marketing Engineer):
Human resources familiar with advanced technologies and with authority to develop new products
We Will Aim to Realize Our Company Vision as “ONE ROHM”
In order to realize the Company Vision that we have presented, it is vital that each employee implements “company goals” and Group companies in Japan and overseas work as “ONE ROHM” to address management issues. We will proceed with reforms for creating products leading to the speedy solution of social problems with the unwavering spirit of facing challenges that we have held since the company was founded. In addition, we will aim to contribute to society through innovative product development and high-quality manufacturing, and to become a company that will meet the expectations of our stakeholders.