TDK’s Digital Transformation Initiatives
Message from the CDXO Cultivating the Intelligence Within
Roshan Thapliya PhD.
Chief Digital Transformation Officer
General Manager, Digital Solutions HQ
General Manager, AI Group, Digital Solutions HQ
Cultivating the Intelligence Within: Journey to Digital Solutions HQ and dedicated AI Group
For decades, TDK has been defined by its mastery of the physical—the materials and magnetic properties that power the global electronics industry. But as we transition into our new organizational structure from April 1, 2026, we are formalizing a shift years in the making: the evolution of TDK into a data-driven, AI-augmented enterprise. The creation of the Digital Solutions HQ and a dedicated AI Group is not merely an administrative change. It is the culmination of internal evolution that began with a series of high-stakes Digital Transformation (DX) projects and the deployment of our most powerful internal tool to date: TDK GenAI. So, why change now? Because the "experiment" phase is over.
The Digital Solutions HQ centralizes our Corporate IT, Digital, and AI Groups into a single powerhouse. Its mission is to move TDK from "doing digital" to "being digital."
- The IT Group provides the robust, Zero-Trust foundation.
- The Digital Group drives the workflow transformations across our global sites.
- The AI Group—my newest charge—will focus on scaling our internal GenAI capabilities and developing specialized "Domain AIs" that encapsulate TDK’s unique expertise in material science and tacit knowledge.
Looking Back at The Blueprint: Learnings from Our DX Projects
Our path to this moment was paved by agile outcome-specific "Task Force" DX tasks and larger companywide DX initiatives bridging traditionally siloed operations together to create new value. We didn't want DX to be a top-down mandate; we wanted it to be a collaborative reality. By bringing together experts from our Business Companies (BCs) and Corporate HQs, we broke down the traditional silos of a global giant.
Key lessons from these projects:
・Data Virtualization is Non-Negotiable:
We learned that to move fast, we couldn't wait for every operation to have identical database structures. Embracing the fact that our system is diverse, allowed us to seeing this not as weakness but propelled us to create new ways through adopting Infrastructure-looking AI-Agents to virtualize data from segregated date sources to AI-ready virtualized datasets.
・The "Human" in the Loop:
DX is half technology and half people. Our transformation succeeded by shifting from "managing systems" to "empowering people" with IT, Digital and AI technologies. This led us to move away from the "Management System HQ" name toward “Digital Solutions HQ”, reflecting our focus on solving human and operational problems. One key addition in the Digital Group is adding a dedicated team for Human-Centric Design which includes UX & Communications, not for mere convenience, but as a strategic layer to cue people to engage with AI seamlessly.
TDK GenAI: The Engine of Internal Efficiency
The true catalyst for our new AI Group was the success of TDK GenAI. Developed in-house to ensure absolute security and privacy, this platform has become the "digital nervous system" of TDK’s Enterprise AI comprising of advanced Cybersecurity measures combined with Agentic AI flexibility.
Unlike off-the-shelf solutions, TDK GenAI is built on a multi-layered architecture designed for a complex manufacturing environment:
- The Reasoning Layer: Powered by multiple Large Language Models (LLMs) that understand the context through proprietary data-sets.
- The Orchestration Layer: Managing complex tasks to optimize workflows.
- The Retrieval Layer: Connecting directly to our internal SQL servers and "Domain AI" datasets—proprietary knowledge that gives us a competitive edge.
By integrating this into our daily workflows, we have begun to gradually transition to Agentic AI applications. The new AI Group with dedicated teams power these transitions through Enterprise AI development, Operational QoS maintenance, Domain-AI development and Responsible AI, pushing TDK into the new field of AI Transformation (AIX).
Our Vision for 2026 and Beyond
We are building a TDK where "Intelligence" is as much a core material as ferrite or lithium. By focusing on our internal transformation first, we ensure that when we deliver a product to a customer, it is backed by the most efficient, data-rich, and AI-optimized organization in the industry- which is also our recipe to cushion volatility in the market for sustainable growth. We are not just transforming TDK; we are creating the "TDK United" of the future—a company where every employee is augmented by AI, every process is optimized by data, and every solution is "In Everything, Better."
April, 2026
Driving Sustainable Innovation in Electronics: TDK’s Digital Transformation Initiatives
Driving Companywide DX with Our Proprietary Framework and TDK GenAI Platform
Our DX framework is companywide, encompassing sales and marketing, manufacturing, and sustainability. In sales and marketing, Agentic AI transforms CRM systems into intelligent growth engines, continuously monitoring opportunities, detecting risks, and guiding teams for optimal results. In manufacturing, for example, DX is used to augment frontline expertise with digital tools, achieving industry-leading operational efficiency. Smart Manufacturing*/Industry 4.0 initiatives include quality assurance, predictive and prescriptive maintenance, energy efficiency, and supply chain optimization—all powered by AI and data integration. In Sustainability Transformation (SX), embedding advanced digital technologies into every facet of the company’s sustainability journey, our DX efforts are making a difference. By integrating AI, automation, and data-driven decision-making, we assist in minimizing our carbon footprint across all operations and supply chains, while enhancing energy productivity and decarbonization efforts. Through this synergy of DX and SX, TDK is not only transforming itself but also setting a new standard for sustainable growth in the technology industry.
* An initiative leveraging digital technologies to optimize the entire manufacturing process
Notably, one of our backbones to drive these transformations is the introduction of our secure TDK GenAI platform, which features a multi-layered architecture: a tool/retrieval layer for accessing data and APIs, an orchestration layer for task management, a reasoning layer powered by large language models (LLMs) and domain-specific AI, a feedback/learning layer for continuous improvement, and a security/compliance layer for robust governance. TDK’s internal generative AI services powered by the TDK GenAI platform and API gateway further enable scalable, secure deployment of Agentic AI solutions across the organization, thereby turbo-charging workflow optimization and productivity outcomes. We are proud to say that we are one of the first adopters of GenAI technologies integrated as a production-level system built in-house and deployed globally within TDK Group, symbolizing TDK Venture Spirit DNA to tackle and adopt promising technologies boldly in the context of predictable market dynamics.
Our commitment to internal workflow transformation is powerfully realized through our strategic focus on IT, Digital, AI and a new task force-style DX initiative. This recently introduced initiative deploys dedicated task forces into operational environments for short, intensive periods (typically less than one month, up to two months) to identify and implement high-impact, AI-driven solutions. The primary objective is to achieve significant cost savings and workflow efficiency improvements using Agentic AI combined with our Domain AIs that have been developed using our domain-specific data accumulated through years of experience and R&D. The new task force-style DX process implementation symbolizes collaboration and the integration of diverse technological and workflow components, ensuring rapid, measurable transformation. We have seen rapid adoption and impact on our workflows ranging from back-end administrative work to factory floors, reducing operational cost by automating “indirect” work.
Comprehensive Training Programs and Zero Trust Security Powering Business-Process DX
Our commitment to DX is celebrated globally through the DX Awards, which recognize outstanding achievements in business impact, outcomes, and effort, fostering a culture of innovation and excellence. Employee engagement is at the heart of TDK’s DX journey, with IT, Digital and AI Groups in Digital Solutions HQ driving governance, responsible AI policies, and robust information sharing across the organization.
Upskilling and reskilling are prioritized through comprehensive DX training programs, including basic and expert IT courses, practical field deployments, and specialized modules on cybersecurity, privacy, and responsible AI. Networking and connectivity are enhanced through global collaboration, with internal and external DX communications facilitated by events, digital communiques, and interaction platforms. TDK also promotes external engagement via the Digital Transformation (DX) Certification it received from the Japanese Ministry of Economy, Trade and Industry, as well as through social media and participation in international conferences, strengthening its presence in the wider digital community. These initiatives collectively create a vibrant network where people, technology, and knowledge intersect. Through these efforts, TDK not only empowers its workforce but also sets new standards for digital leadership and connectivity in the industry.
Cybersecurity and Privacy are core to TDK’s DX. One of our major initiatives is the implementation of a robust Zero Trust security framework to protect our infrastructure and information assets both in the cloud and internally. This approach is structured around five key technical areas—Authentication and Authorization, Network Access Control, Device Control, Network Segmentation, and AI Monitoring—along with comprehensive Governance. For each area, TDK defines four progressive security levels: Level 1 (Security Baseline), Level 2 (Enhanced Protection), Level 3 (Semi-automatic Detection and Response), and Level 4 (Automatic Detection and Response). This layered and adaptive strategy ensures that security measures are continuously strengthened, with increasing automation to detect and respond to threats. By adopting the Zero Trust architecture globally, TDK demonstrates a proactive and dynamic approach to safeguarding its digital environment and critical assets even as newer AI-driven threats become commonplace.
In summary, TDK is driving transformation with a sophisticated blend of DX and AI, embodied in agile methodologies, robust AI platforms, and a culture of continuous learning and ethical innovation. We believe that these efforts collectively position TDK at the forefront of operational excellence and digital leadership, surpassing our customers’ and society’s expectations as an electronics manufacturer.
January, 2026
