How Electronic Components Underpin the Growth of the AI-Driven Society—TDK’s AI Ecosystem Strategy
Generative AI, developed by companies around the world and evolving daily, has quickly become an integral part of how we live and work. AI is no longer just a tool, but a transformative force reshaping the very fabric of society. But before AI can become even more prevalent and practical, several technological hurdles must be overcome, on top of resolving legal, ethical, and social issues. TDK is tackling these challenges head-on by developing devices and systems that underpin the growth of the AI industry as a whole—or what TDK refers to as the AI Ecosystem.
What is the AI Ecosystem?
TDK uses the term AI Ecosystem to describe the broad range of products and industries tied to AI. TDK’s technologies already support a variety of devices essential to generative AI—from servers and storage systems at the heart of generative AI data centers to AR glasses, smartphones, and autonomous vehicles. TDK positions this expansive field as the AI Ecosystem Market.
This market is expected to grow substantially in the coming years. For the fiscal year ending March 2025, revenues from AI-related markets accounted for just over 10% of TDK’s total sales, while the company anticipates a compound annual growth rate (CAGR) of 25%–30% in this area over the medium to long term. Noboru Saito, President and CEO of TDK, affirms the importance of AI, stating, “The AI market is vital to actualizing our long-term vision, TDK Transformation, which we announced in 2024. AI is playing an increasingly central role in the transformation of society, and I am confident that TDK’s technologies can contribute meaningfully to its advancement.”
TDK’s Revenues from AI-related Markets (FY March 2026 Forecast and FY March 2031 Target)
Overcoming the barriers to an AI-driven society
For AI to become a ubiquitous part of society, some key technological barriers must be overcome—notably, the growing volume of network traffic and the soaring energy demands of servers and data centers.
Many of today’s AI systems operate by exchanging massive amounts of data through the cloud. As data volumes grow, high network loads, processing delays, elevated energy consumption, and similar issues are expected to emerge. One promising solution is Edge AI, which performs AI processing locally on or near “edge” devices. By reducing dependence on remote servers, Edge AI can help optimize power efficiency and alleviate network loads. Through solutions that incorporate Edge AI, TDK is working to address these needs.
Improving energy efficiency in AI servers and data centers is also a central theme. TDK is helping to reduce power consumption by developing high-efficiency passive components and power supply products designed to minimize power loss. The company is committed to supporting the growth of data processing driven by the advancement of AI while lowering its environmental impact.
TDK products at the cutting edge of the AI Ecosystem
TDK is far more than just a supplier of electronic components. The company provides comprehensive solutions that support the full breadth of the AI Ecosystem. Below are some examples of TDK products that empower the AI Ecosystem:
For Industrial Machines
• edge RX: Predictive Maintenance using Edge AI
Developed by TDK SensEI, a TDK Group company, edge RX is a predictive maintenance platform that combines an integrated hardware module comprising sensors, Edge AI, and wireless networking, with software. Sensors monitor the condition of industrial machinery in real time, while Edge AI processes the data to predict failures before they occur. This helps lower maintenance costs, maximize uptime, and improve operational efficiency.
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For AR Glasses
• Full-Color Laser Module: Among the World’s Smallest Image Display Devices
AR glasses are drawing attention as a next-generation AI device that may someday replace smartphones. TDK’s Ultra-compact Full-Color Laser Module (FCLM), currently under development, is designed to be the image display component on these devices. This tiny module can color-mix laser beams without any lenses or mirrors, creating a crisp, natural visual experience. TDK is also working on a wide range of supporting components—including bone conduction speakers, sensors, lithium-ion batteries, and solid-state batteries—all geared towards making AR glasses smaller and lighter.
Additionally, in June 2025, TDK announced the acquisition of SoftEye, a leader in smart glasses and AI technologies based in San Diego, United States. This move underscores TDK’s eagerness to establish a leading foothold in the AR glasses market.
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Envisioning the Future of AR Glasses Through TDK’s Augmented Reality Solutions
For AI Servers
• Passive Components That Keep AI Servers Running Smoothly
AI servers, which handle massive processing loads, require both a reliable supply of power and robust noise suppression. TDK’s inductors (VLBUC, ERUC) and multilayer ceramic capacitors (MLCCs) enable voltage conversion and noise filtering, ensuring stable power delivery to GPUs, the core processing units. A single AI server can contain several thousand MLCCs and inductors. TDK is developing distinctive passive components that contribute to the high performance and energy-efficient AI servers.
In addition, compact and high-performance power inductors (TMS, PLE), thin-film capacitors (TFCP), and wire-bonding-compatible temperature sensors (NTCWS) are used in optical transceivers, which are key to boosting AI server performance.
Semiconductor Manufacturing Equipment
• Load Ports and Flip-Chip Systems Honed from Factory Automation Technologies
With the rise of AI in society, so is the demand for semiconductor manufacturing equipment. Leveraging decades of expertise in factory automation and precision clean-process control—honed from the manufacturing of products like magnetic heads for HDDs—TDK develops equipment for the semiconductor manufacturing industry. Key products include load ports, which automatically transfer wafer storage pods into and out of manufacturing equipment, and flip chip bonding systems, which attach IC chips to substrates. By strengthening its manufacturing capabilities and combining them with proprietary materials expertise, TDK offers unique solutions that support the AI ecosystem as a whole.
TDK’s prospects in the AI era
Corporate Officer
General Manager, Americas HQ
Deputy General Manager, Technology & Intellectual Property HQ
General Manager, Americas R&D Center, Technology & Intellectual Property HQ
TDK Corporation
As AI continues to reshape society profoundly, TDK is delivering platforms that integrate sensors, imaging devices, batteries, software, and other advanced technologies, unlocking new value across diverse fields.
Jim Tran, TDK Corporation Corporate Officer and Americas HQ General Manager, comments, “The convergence of AI and semiconductors will enable more efficient, intelligent systems development. At TDK, we’re building innovative platforms by integrating our advanced technologies—from sensors and batteries to software—to deliver value aligned with customer needs and insights. This opens the door to breakthroughs across wide-ranging fields, including autonomous driving, smart homes, and healthcare.”
Going forward, TDK will continue to drive technological advancements while striving to solve societal challenges. By evolving its electronic components and sensor technologies, TDK is committed to supporting the bedrock of AI-driven society and pushing the boundaries of the AI Ecosystem.
