Strengthened Manufacturing Approach to Passive Components for Earnings Expansion and Business Growth

• Construction of two new manufacturing wings at core manufacturing bases in Akita Prefecture (Honjo Plant, Inakura Plant) for driving further growth in TDK’s passive components business globally

Feb. 26, 2015

TDK Corporation announces that it has decided to construct two manufacturing wings to serve as new manufacturing strongholds for electronic components in Akita Prefecture; one on the Honjo Plant premises in Manganji, Yurihonjo City, the other on the Inakura Plant premises in Nikaho City.

Demand for electronic components is increasing globally, and undergirding the activity of Japanese electronic components manufacturers. Factors behind this include growth in global demand in the ICT market for smartphones and other devices, and dramatic growth in the markets for automobiles, industrial machinery, energy, and infrastructure. Also driving global demand is the advancement in electronics devices and the introduction of more electrical components for application in machines. In addition, Internet for Things (IOT) and other new concepts, technologies and specifications are in the process of emerging for the likes of electronic devices and finished products. Consequently, the role played by electronic components compatible with such technological innovation has risen like never before.

TDK had been building up its bases in the Akita region as a global stronghold in electronic components manufacturing. But under the circumstances, it has decided to construct new manufacturing wings for the Honjo and Inakura plants as a part of its strategy for achieving further growth and surmounting severe global competition. By further concentrating and streamlining the manufacturing of electronic components in the Akita region, TDK will establish its plants in the region as a new strategic manufacturing stronghold. This will enable the Group to promote improvements in the manufacturing process and co-sharing of its DNA in magnetic materials and other core technologies. Moreover, it will lead to accelerating TDK’s speed of responding to customer needs, and launching new businesses and products in the future.

Going forward, TDK will leverage its sophisticated technological capabilities to pursue zero-defect quality assurance, and further enhance competitiveness. It will also develop manufacturing lines based on a “Location Free” concept of assuring quality globally from manufacturing facilities in close proximity to each market. The two new manufacturing bases TDK is building will become the mother factories for realizing this concept.

TDK will invest approximately ¥25.0 billion in the construction of the new manufacturing wings, for a planned start of mass production by the end of 2016.

Overview

New wing for the Honjo Plant

New wing for the Inakura Plant