Over the years, TDK has achieved sustainable growth through “nonlinear progress,” our ability to remain alert to the future needs of society and make bold changes in our business portfolio before existing businesses enter a period of maturity.
Today, in anticipation of the future before us, we are taking our powerful first steps toward a new nonlinear progress.
Re-invention
Power of Synergy
Over the years, TDK has achieved sustainable growth through “nonlinear progress,”
our ability to remain alert to the future needs of society and make bold changes
in our business portfolio before existing businesses enter a period of maturity.
Today, in anticipation of the future before us, we are taking our powerful first steps
toward a new nonlinear progress.
A Complete Technology Arsenal
Beginning with our agreement to acquire Micronas at the end of 2015, TDK has pursued aggressive M&As, primarily in the sensor field, and we have quickly moved to deepen our relationships with IC manufacturers, starting with Qualcomm with which we established a joint venture to provide high-frequency components.
With the subsequent closing of our acquisition of InvenSense in May 2017, TDK now has a complete technology arsenal and has begun a new series of reforms.
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Target Markets
Demand for the non-optical sensors TDK considers its target is expected to grow at an annual rate of 8% up to fiscal 2020. Through its acquisition of InvenSense, TDK has obtained a platform for sensors based on micro electro mechanical systems (MEMS) technology, putting the entire non-optical sensor market within range. It has also allowed us to expand our target from our previous focus on the automotive market to other fields, including mobile and IoT, enabling us to build a more balanced product portfolio.
Key Factors behind New Reforms: Speed
The source of competitiveness in business lies in the speed with which needs can be captured, prototypes can be offered, and those new offerings can be incorporated into products and solutions, and thus the cycle also leads to improved profitability. TDK is engaged in a Companywide effort to increase the speed at which it does business.
Speed-Related Synergies with InvenSense
1. Ability to offer solutions
The speed with which InvenSense is not only able to develop software, but to take a concept from the initial capturing of market needs to actually providing a solution, will enhance the ability of the TDK Group as a whole to offer solutions.
2. Accelerated prototype development through in-house manufacturing
InvenSense is a fabless operation, and by bringing their production in-house within the TDK Group, we will significantly shorten the time required to provide prototypes, as well as the time needed to offer solutions.
Accelerated Cycle Times
TDK is working to not only reduce lead times between development, manufacturing, and sales, but is pushing to cut nonvalue- added time Companywide, including in the back office, thus accelerating the entire business cycle.
Building a Total Value Chain in the Sensor Business
With our acquisition of ICsense, which deals in ASIC development, TDK has built a consistent value chain, from materials to solutions and fusion. This will not only allow us to respond totally to our customers' needs from materials onward, but also increase the speed of business.
Driver of a New Business Model―――Collaboration with Qualcomm
TDK's collaborative relationship with Qualcomm is a powerful driving force behind our new business model.
Key Collaborative Synergies
- The ability to use advanced RF solutions to provide integrated systems via the joint venture RF360
- Technical cooperation across a wide range of advanced technologies in next-generation mobile communications, IoT, and automotive-related sectors, including passive components, batteries, wireless power transfer, sensors, and MEMS
- Enhanced reference design capabilities through Qualcomm
- Early disclosure of Qualcomm technology road map
View the full text of “TDK's Future Strategy” on the PDF version.
TDK’s Future Strategy