Hitachi Consolidates Manufacturing in Japan

Hitachi, Ltd. will consolidate the manufacturing functions of its IT platform products in Japan into one subsidiary, effective October 1, 2013.

The manufacturing of IT platform products, including servers, storage equipment and networking devices, is currently dispersed among Hitachi and two group companies. Through this consolidation, Hitachi will aim to enhance the global competitiveness of its platform products in the Information & Telecommunication Systems business with its manufacturing capabilities.

Specifically, the manufacturing process from printed circuit board assembly (PCBA) to configure to order (CTO) of devices at Hitachi Computer Technology & Manufacturing Co., Ltd. (Hitachi Computer Technology & Manufacturing) which is part of Hitachi’s Information & Telecommunication Systems company, will be spun off to Hitachi Storage Manufacturing, Ltd. (Hitachi Storage Manufacturing).

Hitachi Storage Manufacturing will then be renamed Hitachi Information & Telecommunication Manufacturing, Ltd. (Hitachi Information & Telecommunication Manufacturing). In addition, the manufacturing process within the Telecommunication & Network Systems Division of Hitachi’s Information & Telecommunication Systems company will be transferred to the newly-renamed entity.

Respectively, Hitachi Storage Manufacturing and Hitachi Computer Technology & Manufacturing manufacture printed circuit boards and assemble devices for storage equipment and servers in the Hitachi Group. Hitachi’s Telecommunication & Network Systems Division manufactures networking devices.

Hitachi seeks to improve the productivity and investment efficiency of the platform business through the concentration of manufacturing functions for servers, storage equipment and networking devices into one company. Hitachi will also increase its global product competitiveness by further enhancing of quality and reliable manufacturing capabilities, by promoting the standardization of technologies and equipment and by combining its core technologies and expertise.

In addition to manufacturing products for the Japanese and Asian markets, the succeeding company will aim to deliver the world-leading manufacturing. Operating as Hitachi Information & Telecommunication Manufacturing, the new subsidiary will serve as the mother plant to support production, quality control, human resources development and other operations for overseas sites.

Hitachi is targeting further growth through global expansion of its Social Innovation Business, which supplies advanced social infrastructure supported by IT. To this end, Hitachi is strengthening the Information & Telecommunication Systems business as a core operation of the Social Innovation Business. In particular, Hitachi has positioned its cloud computing business, smart information business and big data utilization business as the three priority fields in the Information & Telecommunication Systems business.

The company is working to supply Integrated Platform Solutions that serve as the foundation for each of these priority fields. Hitachi is also working to establish a framework for the IT platform business that can rapidly address changes in the market environment and the diversification of needs.

For example, on April 1, 2012, the company integrated and reorganized business divisions engaged in servers, storage equipment and networking devices. On April 1, 2013, Hitachi will consolidate two engineering companies involved in equipment design, LSI design and embedded software development.

The reorganization of the manufacturing is part of these business enhancement measures. Hitachi believes this move will contribute immensely to expanding the IT platform business within Hitachi’s Information & Telecommunication Systems business and will strengthen its global competitiveness.