Oct. 27, 2017

TDK Corporation (President and CEO: Shigenao Ishiguro, hereinafter “TDK”) announces today that it has reached an agreement with Tabuchi Electric Co., Ltd. (President: Toshihiro Kaihoshi, hereinafter “Tabuchi Electric”), which deals with power conditioners, partially outsourcing the development operation to Tabuchi Electric to enhance the power equipment business for electric and hybrid cars. This will be carried out as part of the capital and business alliance agreement concluded between TDK and Tabuchi in 2007.

Demand for electric and hybrid cars is expected to rise, reflecting the global strengthening of fuel efficiency requirements for automobiles (CO₂ emission controls). Aiming to expand sales of DC-DC converters, automotive chargers and other EV power products that are essential for electric cars and hybrid cars, TDK has decided to partially outsource its operations to Tabuchi Electric with the goal of accelerating development by the power electronics technology and know-how cultivated in solar power generation systems for many years.

With a view to the growing adoption of autonomous cars expected in the near future and the rising demand for electric and eco-friendly cars, TDK is committed to expanding business in its area of expertise, namely automotive products, including passive components, sensors and magnets, in addition to automotive power equipment.

In the automotive equipment field, Tabuchi Electric has traditionally promoted activities related to the large scale passive components field such as transformers and reactors. In addition to the existing business field, the company has plan to incorporate equipment into the power electronics business domain and to promote activities based on future development of inverters for drive motors.

About TDK Corporation

TDK Corporation is a leading electronics company based in Tokyo, Japan. It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's portfolio includes passive components, such as ceramic, aluminum electrolytic and film capacitors, ferrites and inductors, high-frequency products, and piezo and protection components, as well as sensors and sensor systems and power supplies. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK's further main product groups include magnetic application products, energy devices, and flash memory application devices. TDK focuses on demanding markets in the areas of information and communication technology and automotive, industrial and consumer electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2017, TDK posted total sales of USD 10.5 billion and employed about 100,000 people worldwide.

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