Basic Agreement on Production cooperation with Lens Technology Co., Ltd,
Major Chinese Glass Cover Manufacturer

November 8, 2017

Nissha Co., Ltd.

Nissha Co., Ltd. (hereinafter, “Nissha”) announces that its Devices business unit, as of November 6, 2017, signed a basic agreement for a production cooperation of touch sensors with Lens Technology Co., Ltd. (hereinafter, “Lens Technology”), a major glass cover manufacturer in China; Lens International (HK) Limited (hereinafter, “Lens International”); and Nissha and Lens Technologies (Changsha) Company Limited (hereinafter, “Nissha and Lens Technologies”), a joint venture established by the preceding three companies.

Background and goals of production cooperation

Our Devices business unit, which produces film-based touch sensors, has some of the world’s best technology and production capacities. At present, we have a three-site structure comprising Himeji Factory (Hyogo Prefecture), Kaga Factory (Ishikawa Prefecture), and Tsu Factory (Mie Prefecture), which we use to respond to vigorous product demand.
The demand for film touch sensors is expected to continue to grow, and we have been considering expanding our production capacity, including overseas, in order to secure further business opportunities. In March 2017, Nissha established Nissha and Lens Technologies with Lens Technology and Lens International, and has carried out multiple discussions regarding production cooperation.

Nissha’s touch sensors make use of film’s characteristics “thin, light, and durable” while achieving high levels of optical characteristic and high definition pattering, and are used in a wide range of area, including smartphone, tablet PC, portable game player, industrial devices, and automotive. For its part, Lens Technology’s main focus is on cover glass used in IT devices and other areas, and the company is very competitive globally thanks to its high production capacity and quality management abilities. In addition to manufacturing of 2D, 2.5D and 3D cover glass, touch sensor modules, Lens also have the manufacturing business in metal, sapphire, and ceramic.
This current production cooperation will strengthen Nissha’s production capacity, allowing us to secure further business opportunities in the field of film touch sensors, where vigorous demand is expected. Our high technological levels, coupled with Lens Technology’s operational capacity and cost performance in China, will maximize the synergy from both our strengths, allowing us to establish a mass production system for film touch sensors in China in just a short period of time.
In addition to their current main application in IT devices, demand is expected to increase for film touch sensors in areas such as automotive and industrial devices. This current production cooperation will allow our two companies to provide not just touch sensors, but module products assembled with cover glass Lens Technology is rolling out, as well as other ways to provide our customers with higher added value.
With this basic agreement, our two companies will move ahead with specific plans to start mass production by fiscal year 2019. The effects of this matter on the current fiscal year’s consolidated performance will be minimal. If disclosure should be required in future, we will inform you as soon as possible.

Overview of Lens Technology

Name Lens Technology Co., Ltd.
Location Liuyang Biological Medicine Garden, Liuyang, Hunan, China
Name of representative Zhou Qunfei (周群飛)
Foundation 2006
Number of employees 74,174 (as of December 2016)
Scope of business Development, production, and sale of optical lenses, glass products, metal accessories, touch sensor modules and display materials
Net sales 15,236,000,000 RMB (approx. 259,012,000,000 JPY) (as of December 2016) *Calculated at an exchange rate of 1 RMB to 17 JPY.

Overview of Nissha and Lens Technologies (Changsha) Company Limited (Joint Venture)

Name Nissha and Lens Technologies (Changsha) Company Limited
Location No.7, Kangping Road, Liuyang Economic and Technological Development Zone, Changsha, Hunan, China
Name of representative Zhou Qunfei (周群飛)
Foundation 2017
Business description Lens Technology Co., Ltd.: 70%
Lens International (HK) Limited: 10%
Nissha Co., Ltd.: 20%

Inquiry

 Please feel free to contact us.
- The content of the web is information at press time, may change thereafter without notice. Planning goals, risks and uncertainties due to the fact, predictions and may differ from actual results. Please be forewarned.
- "NISSHA" is a generic name of Nissha Co., Ltd. and "Nissha Group" is a Nissha Co., Ltd. and its group companies.

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