Sales by Segment (Fiscal 2015)
Business Environment of TDK
Market environment and opportunities
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For Automotive
- Trend toward lighter weight and electrification of in-vehicle equipment, driven by customers’ increased fuel economy awareness
- Increased demand for eco cars and hybrids, fanning outwards from Japan, North America, and Europe
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For ICT Network
- Increased demand in the Chinese market and other emerging economies
- Market entry of new terminals
- Mobile terminals with lower profile, more functions, higher performance
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For Industrial Equipment & Energy Applications
- Emergence of smart cities in various locations with smart grid (next-generation power distribution network) as energy infrastructure
- Increased demand for renewable energy systems such as wind power and solar power installations
Factors affecting the market
- New environment-related legislation in various countries
- Intensified measures by various governments aimed at saving energy and costs
- Strong pressure on prices due to commoditization of existing products leading to price wars
- Development of new technologies and products by competitors
- Higher prices for source materials including powders and boards due to increased demand
- Fluctuations in sales figures and raw material procurement costs due to exchange rate fluctuations
- General consumer trends in electronics products
Passive Components
The passive components business is TDK's mainstay, generating about half of its total net sales. The segment includes the capacitor business, comprising ceramic capacitors, aluminum electrolytic capacitors, and film capacitors, the inductive devices business with coils, etc., and other passive components including high-frequency components, piezoelectric material components, circuit protection devices, and sensors. As mobile devices become more powerful and incorporate a variety of functions, and as automobiles rely ever more heavily on electrical and electronic equipment, the demand for passive components continues to expand, a trend that is expected to remain strong.
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Magnetic Application Products
TDK's magnetic application products segment is mainly comprised of HDD heads, a field where we hold about 25% of the worldwide market share. The segment is divided into the recording devices business comprising HDD heads and HDD suspensions, and the other magnetic application products business including power supplies and magnets. Heads for HDDs handle the task of writing information to the magnetic media and reading the recorded information. Our mastery of thin-film process technology on the nanometer level has brought about an amazing increase in storage capacity. Highefficiency power supplies incorporating outstanding ferrite and transformer technology, and high-performance magnets also contribute significantly to the conservation of power and resources.
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Film Application Products
The film application products segment covers energy devices such as rechargeable batteries primarily for tablets, smartphones, and other Information and Communication Technologies (ICT) devices, as well as applied film products used for the touch panels of smartphones and similar applications.
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