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TDK Investor Day 2025 Pre-Financial Capital Briefing (Human Resources Strategy & Cutting-edge technology)
(Conducted on September 1, 2025)Q & A

Q1. How have you been moving forward with TDK United? I thought that TDK has evolved significantly compared to the image I had ten years ago. Did this stem largely from changes in your culture in the last several years? Please tell me the story behind it. Where do you still have things you have yet to do sufficiently and things you have to work on more?
A1. We will celebrate our 90th anniversary this year (2025), but no matter how large the company grows, we have continued to foster our Venture Spirit of taking on new challenges and learning from failures. Similarly, since we have carried out several large-scale M&A over the past 40 years, our “Respect for diversity” did not start from scratch. "Functional equality" is not only used by me but was expressed by past top managers in various ways. I think it is important to understand that now is the time for us to evolve further. Regarding the things we have yet to do sufficiently and our issues, I don't want to look at things negatively. I therefore see this as a new initiative. While it is the AI ecosystem that is expected to powerfully drive social transformation in the future, batteries, HDD heads, passive components, and sensors will be perfect matches for the future AI ecosystem and will contribute to it. In a way that leverages this, we have already begun to work on semiconductor manufacturing equipment and embedding software in edge devices. By broadening the base in this way, we would like to ensure that we realize our great potential.
Q2. I think that the rate of success in M&A is high, having started with the acquisition of SAE in Hong Kong and including batteries (acquisition of ATL). On the other hand, businesses including passive components, sensors other than magnetic sensors, and power supply do not seem to be contributing a great deal to profit. How do you utilize ATL human resources and technologies in other departments in terms of human resource utilization? What changes are likely to happen in the future?
A2. Passive Components and ATL members are having mutual communication, not only between management members but also on work sites, with the top manager and other members in the Passive Components visiting ATL. Although products differ between them, they can share information in productivity improvement, DX, new product launches, and other matters. For members of ATL, this is mutual learning; that is, the flow goes in the other direction as well. There is an actual example of functional equality. In a training session that included executive members of ATL, some trainees gave an opinion that we should do a business combining sensors and software (SensEI), which is not related to batteries at all. Because functional equality has begun to actually be instilled, I think that an initiative of mutually learning and implementing the good points of each business entity will be accelerated in the future.
Q3. I have a question about the communication score. What are the immediate issues and specific measures for the achievement?
A3. We conducted it for the first time in 2023, and it was kind of fact-finding. The top priority was given to inspiring our team members (employees) around the world, soliciting as many participants as possible, and reflecting their voice. The second point is that, while our target is of course 75 points, the key point is that we take collective action and make a step forward together with team members. We thought that this would allow us to reach the hearts of people as well as their minds. We think that a major challenge is to unify the diverse members, given that non-Japanese members account for 90% of the workforce. This is why we intend to appoint people with different, broader perspective like Ms. Angela Yuan and Ms. Tomoyo Hiraoka, who are today's speakers, as local leaders to take the right actions and accelerate the transformation.
In addition, the CEO himself has visited a considerable number of sites. he thinks that, for members at each site, improving communication is also something like a request for the CEO himself to make an improvement. He therefore makes it a rule to talk about communication with team members.
Q4. I have a question to Outside Director Katsumoto. Please tell me strengths and weaknesses of TDK's organization and culture from the perspective of an Outside Director.
A4. I feel that functional equality, diversity, training programs, and other areas were explained today in an extremely open, accurate manner, from the viewpoint of an Outside Director as well. I visit the Global HQ of TDK in Japan once a month. Every time I go there, I see the senior person from some organization visiting there and I have a deep discussion about technologies with that person. This happens regularly. It is an extremely open culture, which permits us to say what we want to say without political considerations at Board meetings and other settings. I think that a cooperative relationship in the aspect of personnel matters has also been established globally. The environment seems putting in place for the top, second, and third layers. I believe that great chemical reactions will occur if the measure makes progress in a more multi-layered manner to reach on-site workers. For example, while TDK has companies in the United States and Europe, they still seem to be connected via Tokyo. I feel that if an environment for direct interaction is built, an extremely good corporate culture will be developed.
Q5. Spin photodetectors and co-packaged optics (CPO) are expected to have huge markets, and they are technologically important, too. How will TDK United and so on work for to produce outcomes?
A5. We came up with the idea that it would be interesting to use magnetic films for photodetection, which is made by using semiconductors. This reflects the TDK Venture Spirit. We can make the element by forming a film using the same material as HDD heads. However, the technologies exist all over the world. For example, HDD wafers are manufactured in the United States while TMR sensors are made at Asama. We can make magnetic films for spin photodetectors by using the best technologies. Regarding CPO, we will intend to collaborate with an external partner. In addition, spin photodetectors can also be used for AR glasses because they detect light. They are used in different ways from CPO. They are used to detect whether laser is emitted properly and whether images have been created as intended. The scope of applications is also wide, and I think we will be able to apply a wide range of internal technologies of TDK.
Q6. I listened to the discussion about spin photodetectors with interest as an intriguing data center-related technology. What are its benefits over the existing silicon photonics technologies? Could you quantify how fast you can make it?
And how much power can be saved? Please tell me what issues you will address, including the time schedule.
A6. We succeeded in a proof-of-principle demonstration of an ultra-high-speed response in 20 picoseconds. Broadly speaking, I think it is about ten times faster than silicon photonics. Because this is the development of a cutting-edge technology, we have yet to enter the stage of volume production. We have achieved a proof-of-principle demonstration. I used the word, "wavelength dependence." In the case of a semiconductor, we need to prepare materials that suit the respective wavelengths. This spin photodetector can detect the presence or absence of a signal by detecting heat. It can therefore detect light in any wavelengths. In this sense, this device has wide applications. We have basic technologies from TDK's spintronics and the proof-of-principle demonstration has been completed. We now want to take on the challenge of achieving volume production, such as partnering and preparation of equipment, with an eye to commercialization.
Q7. I have a question about neuromorphic devices. Which sensors of TDK will be combined with them and what will be possible? Please give me a picture of how they will be mounted. What will happen if the device is combined with an image sensor, for example? Please tell me if there are any ideas about that.
A7. Potential applications are almost infinite. At present, AI does extremely heavy calculations with cloud computing. The presence of a superior neuromorphic device would enable such calculations on edge devices. I think that this world is coming. How to use them will be determined in consultation with customers, but a combination with an image sensor is most feasible and will have a broad scope of application. I think that it will develop into a big business. Because TDK has diverse sensors, I feel that powerful combinations will be created.