TDK to make strategic investments in Japan to expand its high-performance magnetic sensors business for Physical AI

• Strategic investments in the high-performance magnetic sensors business to capitalize on the Physical AI era
• Contributing to development of the AI ecosystem on which TDK is focused

TDK Corporation (TSE:6762) has decided to make strategic investments to strengthen the development of new magnetic sensors, particularly tunnel magnetoresistance (TMR) sensors, and establish a full-scale mass-production system. Designed primarily for Physical AI applications, these sensors are compact and consume little power, while also delivering high-performance and fast response for next-generation power semiconductors. The total investment is expected to be approximately 100 billion yen at TDK Shinano River Techno Factory in Ojiya City, Niigata Prefecture, Japan.

In recent years, the spread of AI technology has rapidly expanded into the “Physical AI” domain, including robotics, smart infrastructure, and automation systems. As a result, the importance of sensors that acquire real-world data with high precision and in real time is increasing, and the AI ecosystem market, including sensors, is expected to expand over the medium to long-term. TDK’s magnetic sensors portfolio includes angle and linear sensors based on TMR technology.

Against this backdrop, in June this year, TDK established TDK Shinano River Techno Factory in Ojiya City, Niigata Prefecture, Japan. Through the large-scale strategic investments announced today, TDK will bring to global markets high-value-added products that combine its proprietary packaging technologies with high-performance TMR sensors. These products will help improve the energy efficiency and performance of equipment in an AI-powered infrastructure society.

These investments will contribute to the further development of the AI ecosystem market on which TDK is focused, as well as to the revitalization of related industries in Japan and the local economy. Learn more about TDK sensors, including magnetic sensors, at https://product.tdk.com/en/products/sensor/index.html

Overview of the New Factory

1. Factory Name:	TDK Shinano River Techno Factory
2. Location:	Ojiya City, Niigata Prefecture, Japan
3. Site Area (Building Area):	173,335 m2 (132,075 m2)
4. Main Business Activities:	Production of magnetic sensors
5. Scheduled Start of Operations:	In 2029