In R&D of electronics materials at Toagosei, we have been making steady progress in work on two silicon chemical compounds . TRIES (triethoxysilane, which is used in making semiconductor resists), and HCD (hexachlorodisilane) used in the formation of silicon nitride membranes for semiconductor production.
  Additionally, for several years we have been trying to find market applications for our SQ Series of silsesquioxane compounds, which are in-house developed siliconbased materials with several useful characteristics. Aiming at the development of products with even more advanced and specialized functions, we have entered into a business collaboration with the US company Mayaterials Inc.
  As the first step in this collaboration, in February 2007 we acquired exclusive sales agent rights in the Asian market for Mayaterials' Q8 Series of octasilsesquioxane compounds (silicon-based hybrid materials), and began developing a market for them. The Q8 Series products have unique properties that are lacking in other materials we have used previously. The use of Q8 Series products allows the development of new nanocomposites with excellent heat-resistance and transparency, and we can thus look forward to growing market demand for new optical/electronics materials.
  Toagosei has plans in the near future for developing new organic-inorganic hybrid materials with excellent characteristics by combining elements of the SQ Series with those of the Q8 Series. We believe there are good prospects for the development of this lineup of novel silicon compounds into a profitable new business.

Our research project into neuron differentiation through peptides, carried out jointly with Yokohama City University, was chosen by the Japan Science and Technology Agency for its Research Program in Innovative Technology Development. The goal of this research program is to develop cures for intractable nerve diseases such as Parkinson's disease, retinal degeneration, and nerve conditions caused by injury to the spinal cord. The plan is to investigate technologies for differentiating a patient's own somatic stem cells (skin or marrow stem cells) to form nerve cells, which can then be transplanted into the patient to replace damaged nerve tissue. It is hoped that this research will make a valuable contribution to progress in regenerative medicine.
  In June 2007, in a joint initiative with a team of researchers at the Department of Molecular Biology of Keio University, headed by Associate Professor Jun Kudo, we participate in the GSP ("Genome Super Power") Center . a branch of the Keio Advanced Research Centers . on the premises of our Institute for Advanced Sciences in Tsukuba. Together with the Keio University team, Toagosei is pursuing the Peptide-based Drug Creation Project, involving research into new functional peptides which, it is hoped, will display "super powers" with respect to the treatments of various diseases.
  In the future, we aim to develop business operations in new fields opened up through a combination of expertise accumulated in peptide engineering and our existing chemicals technologies. The project is also being assisted by Professor Emeritus Nobuyoshi Shimizu of Keio University.