Investor Relations | IR Events | Performance Briefing

[ Financial Results for Fiscal 2013 Performance Briefing ]Passive Components Business

Hiroyuki Uemura

Mr. Hiroyuki Uemura
Executive Vice President

For the business strategy of the passive components business, we are focusing our marketing and sales efforts to increase the group synergy effects in the automotive, communication, and industrial areas.
For ceramic capacitors, worldwide consolidation of our manufacturing sites has been completed as of March. We will continue to take advantage of the restructuring effects and to stabilize our operations. In FY ending March 2014, we want to move towards a growth strategy. We are working on new products, we want to change our product portfolio, and things are moving according to plans. For ceramic capacitors, we will position the automotive market as the highest priority market. For the automotive market, there are requirements for high reliability and depending on the application, elemental technologies are necessary. We will deploy this horizontally so our application products will be enhanced. For high density mounting, there will be new product developments that will fulfill this requirement area as well as the area of coils and capacitors.

For high frequency components, we want to improve profitability and increase sales by launching module and SAW devices. In the near future we have SAW filters, including duplexers, and we are now trying to increase production capacity. Recent orders have increased; therefore, we have to accommodate this by increasing production capacity. We also must be able to respond to increased demand for both the standalone products as well as for modules. For next-generation communication technology, design-in activities have to be accelerated even more than before. We will take advantage of inductor technologies for thin-film filters to launch products onto the market. We also want to optimize customers’ portfolios. Instead of depending on just a single vendor, we are going to be looking at different customers in different regions so we want to follow up in our activities accordingly instead of depending on a single customer. To maximize TDK group synergy, we can work on the module area; and for development resources, we must optimize production line placement and the allocation of development resources.

In regard to inductive devices, we have a very high market share but we want to make it thinner and more compact, and with our own original methodologies, we want to continue to develop demand for our products. In the power coil line-up, we are going to be expanding our portfolio. There is the thin film coil and the wire wound coil to respond in a flexible manner to the requirements of our customers to do our best to maintain our number one market share position for high frequency coils in the area of development and also in overseas comprehensive production that has started, we want to enhance our sales to increase our market share. In the area of smartphone camera modules, for VCMs, we will continue to look at our local customers, enhance our efforts, and continue to maintain our market share. That concludes my explanation of the passive components business strategy.