Asian electronics declining

Mr. Numakura states that most of the people in the industry do not expect a remarkable rebound in the next half-year. There are too many market inventories of notebook computers in the U.S. and Japan. The display manufacturers in Asia have been expanding the production capacities aggressively in the last two years. But the demands of PC did not grow very much; therefore, their capacities are much larger than the market demands right now. Mr. Numakura also states that the demands of cellular phones in Asia have been becoming weaker continuously. The market demands of the flat panel TV are still growing, but they cannot fill the demand declines of the PC and cellular phones. This may also affect the flex circuit business.