Business Segment Strategies

Passive Components Segment

The Passive Components segment is TDK's mainstay, generating about half of total net sales. It comprises the capacitor business, which includes ceramic capacitors, aluminum electrolytic capacitors, and film capacitors; the inductive device business, including coils; as well as other passive components, including high-frequency components, piezoelectric material components, and circuit protection components. As mobile devices become more powerful and incorporate a variety of functions, and as automobiles rely ever more heavily on electric and electronic equipment, the demand for passive components will continue to expand, and growth is expected to remain strong going forward.

Passive Components Support Electronics Society

Electronic components include IC, LSI, and other active components, and capacitors, inductors, resistors, and other passive components that store, discharge, and consume electric power. Active components only function with help from passive components.

Installed on the circuit boards of mobile devices, electrical home appliances, office equipment, automobiles, robots, industrial equipment, and other devices are memory and CPUs—consisting of an aggregation of many semiconductor devices—as well as a wide variety of passive components. To sustain the ceaseless evolution of electronic equipment and automobiles, TDK is working to make these passive components smaller, lighter, lower in profile, and more modular.

• Strengthen Monozukuri (manufacturing excellence) power and enhance QDC competitiveness
• Maximize cooperation with Qualcomm and achieve high-value-added products through a “First-to-Market” approach
• Continue endless pursuit of compact, low-profile design (thin-film and SESUB technology)

Market Data

Spread of Electric Vehicles (HV, PHEV, EV)

Source: Sogo Planning 2017 Latest Trends in and Forecasts for Electric Vehicle-related Markets.

Sensor Application Products Segment

By positioning sensors as its primary strategic growth products, and by deploying an aggressive program of acquisitions, TDK has added a wide variety of sensors to its existing line of magnetic, temperature, and other sensor products, while also building a world-class lineup of non-optical sensor products in a very short time.

Under our newly established Sensor Systems Business Company, which has merged the TDK Group's various sensor businesses, we are also working with IC manufacturers to push forward with development of multi-functional, modularized sensors and even more advanced sensor fusion, as we aim to become the world's No. 1 provider of sensor solutions.

Closing in on One-Trillion-Sensor Age

Sensors detect information concerning our five senses, including sight, hearing, and touch, as well as physical sensations such as temperature, humidity, barometric pressure, acceleration, and inertia, and even properties such as magnetism and ultrasound that cannot be detected by human senses, and convert that information into electric signals. They are installed in a wide array of electric and electronic devices all around us, including mobile devices such as smartphones as well as automobiles and others, providing unseen support for everyday life, business, and industry.

With the explosive growth of a variety of IoT devices, annual production of sensors is expected to exceed one trillion units by the 2020s. With non-optical sensor technology accumulated through M&A and an overwhelmingly strong product lineup, TDK aims to lead the world in the age of IoT.

• Integrate a previously dispersed organization, and achieve a borderless marketing and R&D structure
• Merge core sensing and materials technologies with IC and packaging technologies to offer highly functional, high-value-added sensor solutions
• Expand customer base for existing sensor products

Market Data

Outlook for Global Sensor Demand (Non-Optical)

By market

Magnetic Application Products Segment

TDK's Magnetic Application Products segment is divided into the recording devices business, comprising HDD magnetic heads and HDD suspensions, and the other magnetic application products business, including power supplies and magnets.
The segment mainly comprises HDD magnetic heads, a field where we hold high worldwide market share. HDD magnetic heads handle the task of writing information to the magnetic media and reading the recorded information. Our mastery of thin-film process technology at the nanometer level has brought about an amazing increase in storage capacity. High-efficiency power supplies incorporating outstanding low-loss ferrite and transformer technology, and high-performance magnets utilizing our materials technology, also contribute significantly to the conservation of power and resources.

Modern People Would Be Helpless without Them

Magnets, which retain their magnetic force without a supply of energy, are fundamental to sustaining modern society. For example, automobiles are equipped with about 100 compact motors that use ferrite magnets. Powerful neodymium magnets are also used in xEV drive motors.

Going forward, demand for high-performance magnets is expected to grow even further, including magnets for industrial equipment and robot motors, and for power generators used in wind power generating systems. Since its founding, TDK has spent more than 80 years refining the magnetic materials technology that is part of its DNA, and will contribute to society by continuing to refine that technology.

• Completely rebuild the magnetics business, the starting point of the materials business
• Lead change and technological innovation in the HDD industry

Market Data

Global Market Forecast for In-Vehicle Motors by System Area

Note 1: Based on number of vehicles produced.
Note 2: Forecast figures for 2016 and beyond (as of August 2016).
Source: Yano Research Institute Ltd. In-Vehicle Motors Market 2016

Global In-Vehicle Motors Market Size

Note 1: Based on number of vehicles produced.
Note 2: Forecast figures for 2025 and beyond (as of August 2016).
Source: Yano Research Institute Ltd. In-Vehicle Motors Market 2016

Film Application Products Segment

The Film Application Products segment covers a variety of energy devices, primarily rechargeable batteries for ICT devices such as smartphones, tablets, and notebook PCs, as well as for automotive use and use in industrial equipment.
ATL, which develops and produces lithium polymer batteries, has established a position as the leading company in the lithium polymer battery field. Drones and other new areas of application are also beginning to expand.

Significant Potential Lies in Rechargeable Lithium Polymer Batteries

Rechargeable lithium polymer batteries are a type of lithium-ion rechargeable battery, use of which has expanded in mobile devices, but which use a polymer electrolyte in gel form.

In addition to making compact, lightweight design easier, high freedom of form factor, further boosted by increasingly thinner smart devices, has increased demand for lithium polymer batteries dramatically over the past 10 years. Going forward, demand is expected to increase as an alternative to square cell batteries in notebook PCs and smartphones, and increase in IoT devices requiring compact, high-capacity batteries. Adoption is also progressing in drones and virtual reality devices, as well as in robots, automated guided vehicles (AGVs), and other applications in the industrial equipment and energy sector.

• Provide the highest level of performance and reliability as the leading manufacturer of batteries for consumer products
• Use vertical integration strengths in materials and components to expand energy-related product line
• Begin putting in place structures aimed at future business expansion

Market Data

Forecast Worldwide Demand for Rechargeable Batteries (Non-ICT Market)