Segment Business StrategyPassive Components

Medium-to Long-Term Growth Strategy

The recent structural reform promoted the allocation of Management Resource to the passive components segment as a field with high profitability. In particular, inductive devices, high-frequency components, and piezoelectric material components have been designated as key businesses. Strategic investments and technological development are being implemented, with the aim of pushing the operating income ratio over 10% by fiscal 2018.

A stable supply situation is expected with regard to products for the automotive sector, with the potential for growth, as we are responding to demands by manufacturers and consumers for reduced energy consumption and lower power operation.In the ICT sector, the expansion of the smartphone and tablet market will bring about more business opportunities for TDK through technological innovation.

Outlook for Fiscal 2016

In fiscal 2016, we expect net sales to grow from 7% to 10%. Among inductive devices, the share of thin-film products and multilayer products for the ICT market and the automotive market is expected to grow. In the area of high-frequency components, SAW, TC-SAW, BAW, and other filters for the LTE market expanded, and further growth in sales is expected, thanks to development efforts aimed at smaller dimensions and further improved characteristics. An expansion in sales is also projected for piezoelectric material components, key products being parts for the automotive market and optical image stabilizers for camera modules on the Chinese market.