TDK Corporation (6762.T) Bundle
From its founding in Tokyo on December 7, 1935 to commercialize ferrite to today's role as a global electronic-components powerhouse, TDK Corporation has charted a path of sustained innovation-rebranding as TDK Corporation in 1983, launching the world's first DAT recorder in 1990, and expanding through landmark acquisitions such as EPCOS in 2000 and Micronas in 2010; with approximately 1,943,859,885 shares issued (authorized: 7,200,000,000), a workforce of about 105,000, more than 250 factories/R&D/sales sites across 30+ countries, and fiscal 2025 sales of USD 14.4 billion (net profit attributable to owners: 167.2 billion yen), the publicly listed 6762.T leverages five core segments-Passive Components, Sensor Application Products, Magnetic Application Products, Film Application Products and Others-to supply capacitors, inductive devices, sensors, magnetic heads and film products to automotive, industrial, consumer electronics and ICT markets; rated A3 (Moody's), A- (S&P) and A+ (R&I), recognized as an SX Brand 2025 and a 2025 Extel "Most Honored Company," and pursuing strategic moves like the McLaren Racing Formula E partnership and the 2025 SoftEye acquisition, TDK's mission-"Contribute to culture and industry through creativity"-drives a sustainability- and innovation-focused strategy that underpins how it makes money and where it aims to grow
TDK Corporation (6762.T): Intro
History- Founded December 7, 1935 in Tokyo to commercialize ferrite for electronic and magnetic products.
- 1983: Renamed from Tokyo Denki Kagaku Kōgyō K.K. to TDK Corporation to reflect global expansion and diversification.
- 1990: Introduced the world's first digital audio tape (DAT) recorder, marking a milestone in digital recording.
- 2000: Acquired German EPCOS AG, strengthening passive components portfolio and European market presence.
- 2010: Acquired Micronas (Germany), enhancing semiconductor-based sensor capabilities for automotive and industrial markets.
- 2025: Selected as an SX Brand 2025 by Japan's METI and the Tokyo Stock Exchange for sustainability and long-term corporate value efforts.
- Institutional holders dominate free float; typical top shareholders include trust banks and global custodians.
- Common major shareholders (examples based on public filings): The Master Trust Bank of Japan, Japan Trustee Services Bank, State Street, and various life insurers and overseas asset managers.
- Cross-shareholdings with Japanese corporates and financial institutions remain a feature of TDK's shareholder base.
- Mission: To contribute to society through the creation of material technologies and products that support electronic systems worldwide.
- Strategic priorities: energy efficiency, miniaturization, electrification and sensing for automotive, industrial, ICT and consumer markets.
- Sustainability: targets for CO2 reduction, circular economy initiatives for rare earths and critical materials, and selection as SX Brand 2025.
- Core technology: magnetic materials (ferrite), ceramics, thin films, and semiconductor-based sensing plus advanced assembly and testing.
- R&D-driven: significant investment in materials science, power magnetics, MEMS/semiconductor sensors and battery-related components.
- Global manufacturing footprint: plants in Japan, Asia, Europe and the Americas to serve automotive, industrial, ICT and consumer OEMs.
| Business Segment | Main Products | End Markets | Approx. Revenue Mix |
|---|---|---|---|
| Passive Components | Capacitors, inductors, EMC filters (from EPCOS heritage) | Electronics OEMs, industrial, telecom | ~30% |
| Sensors & Actuators | Magnetic sensors, MEMS, position sensors | Automotive (ADAS, e-drive), industrial automation | ~20% |
| Energy Devices | Rechargeable battery components, power modules | Automotive EV/HEV, energy storage, industrial | ~25% |
| Film & Magnetic | Magnetic heads, thin films, magnetic materials | Data storage, industrial magnetics | ~15% |
| Others (EMI suppression, sensors for consumer) | EMI products, small sensors, service & solutions | Consumer electronics, aftermarket | ~10% |
| Metric | Value (approx.) | Unit / Notes |
|---|---|---|
| Revenue (FY) | ¥1,546.6 billion | Consolidated annual sales |
| Operating Income (FY) | ¥110.4 billion | Operating profit |
| Net Income (FY) | ¥76.2 billion | Profit attributable to owners |
| Total Assets | ¥1,915.8 billion | Consolidated |
| Employees | ~103,000 | Global headcount |
- Strengths: deep materials expertise, diversified product portfolio across components, sensors and energy devices, strong OEM relationships.
- Growth drivers: electrification of vehicles, renewable energy storage, 5G/ICT infrastructure, demand for miniaturized passive components and advanced sensors.
- Risks: commodity/rare-earth supply volatility, cyclical electronics demand, currency fluctuations and competitive pricing pressure from regional players.
TDK Corporation (6762.T): History
TDK Corporation (6762.T) traces its roots to 1935 with the commercialisation of ferrite, evolving from a single-product manufacturer into a diversified global electronics components leader. Over decades TDK expanded through organic R&D and strategic acquisitions to serve markets in consumer electronics, automotive, industrial, and telecom infrastructure.- Founded: 1935 (ferrite materials)
- Core evolution: passive components → magnetic materials → sensors, power modules, and energy devices
- Global expansion: sustained manufacturing and R&D footprint growth since post‑WWII era
Ownership Structure
- Public listing: Tokyo Stock Exchange, ticker 6762.T
- Shares issued (Oct 2024): 1,943,859,885
- Authorized shares: 7,200,000,000
- Shareholder mix: institutional investors, retail shareholders, and employee holdings
| Metric | Value |
|---|---|
| Fiscal 2025 Total Sales | USD 14.4 billion |
| Employees (approx.) | 105,000 |
| Global facilities | 250+ factories, R&D centers, sales offices |
| Geographic reach | 30+ countries and regions |
| Corporate ratings (Sep 2025) | Moody's A3 / S&P A- / R&I A+ |
| Shares issued (Oct 2024) | 1,943,859,885 |
| Authorized shares | 7,200,000,000 |
Mission
- Advance society through electronic components and energy solutions
- Focus areas: energy efficiency, miniaturization, reliability, and sustainability
- R&D-driven: sustained investment to support high-value applications (automotive electrification, 5G/6G infrastructure, industrial automation)
How It Works & Makes Money
TDK generates revenue by designing, manufacturing, and selling electronic components and systems used by OEMs and OEM suppliers across multiple end markets.- Product segments: passive components (capacitors, inductors), magnetic sensors, power supplies and modules, battery and energy devices, and electronic materials.
- Customers: consumer electronics firms, automotive manufacturers, industrial equipment makers, telecom infrastructure companies.
- Revenue drivers:
- Volume sales of capacitors and inductors to electronics manufacturers
- Higher-margin systems and modules for automotive electrification and ADAS
- Licensing, IP, and aftermarket services
- Scale advantages: global manufacturing footprint (250+ sites) reduces lead time and supports local sourcing for large OEMs.
TDK Corporation (6762.T): Ownership Structure
TDK's mission - 'Contribute to culture and industry through creativity' - drives its focus on high-demand segments (automotive, industrial & consumer electronics, information & communication technology) and its long-term vision 'TDK Transformation' to accelerate technological evolution and societal transformation through electronic devices. Sustainability and ESG are integral: selected as an SX Brand 2025 by METI and TSE, named 'Most Honored Company' in electronic components by Extel (2025), and listed as a Yearbook Member in The Sustainability Yearbook 2025 (S&P Global).- Core markets: Automotive (sensors, power modules), Industrial (power supplies, inductors), Consumer electronics (capacitors, magnetic devices), ICT (data-center components, high-frequency parts).
- Strategic priorities: Electrification, connectivity, miniaturization, and sustainability across product roadmaps.
- Workforce and scale: ~106,000 employees globally supporting R&D, manufacturing and sales networks (2025).
| Metric (FY / Calendar) | Value |
|---|---|
| Consolidated revenue (most recent FY) | ¥1.73 trillion |
| Operating income | ¥132 billion |
| Net income | ¥81.3 billion |
| Employees (approx.) | 106,000 |
| Market capitalization (approx., 2025) | ¥2.4 trillion |
- The Master Trust Bank of Japan (trust accounts): ~10.5%
- Japan Trustee Services Bank (trust accounts): ~8.2%
- Nippon Life Insurance Company and similar insurers: ~4-5%
- Major global custodians/asset managers (e.g., State Street, BlackRock): combined ~8-10%
- Cross-shareholdings and treasury shares: minority portion; significant free float on Tokyo Stock Exchange.
- Component sales: Capacitors, inductors, sensors and magnetic materials sold to OEMs (largest revenue share).
- Systems and modules: Power modules, EMC filters and sensor modules for automotive/industrial customers.
- High-value solutions: Custom device solutions for EV powertrains, ADAS, 5G/ICT infrastructure.
- Aftermarket and licensing: Technology licensing and aftermarket component replacements.
- Price and product mix: Higher-margin sensor and power-module growth improves operating margins.
- Capacity & localization: Investing in regionally localized fabs to serve automotive and ICT demand.
- R&D intensity: Sustained R&D investment to maintain leadership in miniaturization and high-frequency components.
- Sustainability credentials: ESG recognition (SX Brand 2025, Sustainability Yearbook) supports investor relations and supply-chain partnerships.
TDK Corporation (6762.T): Mission and Values
TDK Corporation (6762.T) was founded in 1935 as Tokyo Denki Kagaku Kogyo K.K., commercializing ferrite, a magnetic material invented in Japan. Over nine decades the company expanded globally into electronics components, sensors, magnetic heads, and passive and film-based products, driven by acquisitions (e.g., Micronas, EPCOS components integration from TDK's historical relationships) and R&D in magnetics and electronic materials. TDK's public listing and diversified manufacturing footprint in Asia, Europe, and the Americas underpin its position as a leading component supplier to automotive, industrial, information & communication technology (ICT), and consumer markets.- Founded: 1935 (Tokyo)
- Headquarters: Tokyo, Japan
- Global presence: Design, manufacturing, and sales sites across Asia, Europe, North & South America
- Primary end markets: Automotive, industrial, ICT, consumer electronics
- Mission: Create value through material science and electronic components that enable safe, efficient, and sustainable society.
- Values: Innovation in materials & magnetics, customer collaboration, global manufacturing reliability, environmental stewardship.
- Passive Components - core capacitors (multilayer ceramic, aluminum electrolytic, film), inductors, high-frequency components, piezoelectric ceramics, circuit protection devices, and certain sensors.
- Sensor Application Products - temperature, pressure, magnetic (Hall-effect and magnetoresistive), and MEMS sensors for automotive ADAS, industrial automation, consumer devices.
- Magnetic Application Products - magnetic heads (for data storage historically), thin-film magnetic materials and related read/write devices, and other magnetics for industrial use.
- Film Application Products - film capacitors and related film-based electronic components used in power electronics and industrial applications.
- Others - corporate R&D businesses, system-level modules, and legacy product lines not categorized above.
- R&D centers specialize in materials (ferrite, piezo ceramics, magnetic films), sensor MEMS design, and power electronics modules.
- Manufacturing network spread across Japan, China, Southeast Asia, Europe, and the Americas-enabling local supply for automotive and industrial customers and risk diversification.
- Sales & engineering offices provide application support for major OEMs in automotive and ICT sectors.
- Volume sales to automotive (e.g., EV powertrain, ADAS sensors) and smartphone/ICT manufacturers (passive components and sensors).
- High-value specialty products (MEMS sensors, high-reliability capacitors, magnetic thin films) with higher margins and IP protection.
- Aftermarket and module-level offerings for industrial power systems and energy management applications.
| Metric | Value (Recent FY) |
|---|---|
| Consolidated net sales | ≈ ¥1.66 trillion |
| Operating income | ≈ ¥166 billion |
| Net income | ≈ ¥100 billion |
| R&D expenditure | ≈ ¥70-90 billion |
| Employees (consolidated) | ≈ 100,000 |
| Segment | % of Sales (approx.) | Drivers |
|---|---|---|
| Passive Components | ~45% | Capacitors, inductors, high-frequency parts for ICT & automotive |
| Sensor Application Products | ~20% | Automotive sensors, MEMS, industrial sensing |
| Magnetic Application Products | ~15% | Magnetic heads/materials, industrial magnetics |
| Film Application Products | ~12% | Film capacitors for power electronics |
| Others | ~8% | Modules, legacy lines, services |
- Major costs: raw materials (ceramic powders, electrolytes, copper, rare-earth magnets), manufacturing labor, capital equipment for thin-film and MEMS fabs.
- Margin drivers: product mix (specialty sensors and high-voltage capacitors carry higher margins), scale in passive components, and cost pass-through to OEM contracts.
- Capital intensity: significant investment in R&D and precision manufacturing (cleanrooms, thin-film deposition, testing equipment).
- Automotive electrification and ADAS - growing demand for high-reliability capacitors, inductors, and sensors.
- 5G/edge computing - higher-frequency passive components and thermal/EMI management parts for base stations and servers.
- Industrial electrification and renewable energy - film capacitors and power modules for inverters and storage systems.
- Deep materials and magnetics R&D enabling differentiated components (ferrite, piezo, thin-film magnetics).
- Broad product portfolio across passive, sensor, and magnetic domains allowing cross-selling into automotive and industrial platforms.
- Global manufacturing footprint that supports OEM qualification and supply resilience.
TDK Corporation (6762.T): How It Works
TDK Corporation (6762.T) operates as a global manufacturer and supplier of electronic components and systems, generating revenue primarily through product sales, design services, and integrated modules for demanding end markets.- Primary revenue sources: passive components (capacitors, inductors, resistors), sensors (MEMS, inertial), magnetic application products (recording media, heads, ferrite cores), and film application products (thin-film components, energy devices).
- Market focus: automotive (ADAS, EVs, powertrain), industrial (factory automation, power supplies), consumer electronics (smartphones, wearables), and information & communication technology (5G infrastructure, data centers).
- Brands and acquisitions that drive sales include TDK, EPCOS, InvenSense, Micronas, Tronics, and TDK-Lambda.
- Total sales: USD 14.4 billion (fiscal 2025).
- Net profit attributable to owners: 167.2 billion yen (fiscal 2025).
- Product design and IP: in-house R&D converts sensor, thin-film and magnetic technologies into licensed and proprietary components used by OEMs.
- Volume manufacturing: global manufacturing footprint enables scale production of passive components and power modules, lowering unit costs and improving margins.
- Solution sales: bundled modules and design-in support for automotive and industrial customers create longer-term contracts and recurring revenue.
- Channel and direct sales: global sales offices and distributor networks in Asia, Europe, North and South America accelerate go-to-market and aftermarket support.
- Design wins in automotive and ICT drive multi-year revenue streams as components become embedded in vehicle platforms and infrastructure equipment.
- Portfolio diversification-from discrete passive parts to MEMS sensors and power supplies-smooths cyclicality across end markets.
- Strategic brands and acquisitions expand addressable markets (e.g., InvenSense for MEMS, TDK-Lambda for power supplies).
- Sustainability and material innovation reduce production costs, comply with regulations, and meet OEM ESG procurement criteria, supporting premium pricing and preferential sourcing.
| Stage | Activity | Revenue impact |
|---|---|---|
| R&D & IP | Develop sensors, magnetic materials, power modules | Enables proprietary products and licensing |
| Design-in | Collaborate with OEMs for specification and qualification | Generates multi-year supply contracts |
| Manufacturing | High-volume production across global sites | Economies of scale, margin improvement |
| Sales & Distribution | Regional sales offices and distribution partners | Broad market access and after-sales revenue |
| Aftermarket & Services | Technical support, replacement components | Recurring revenue and customer retention |
TDK Corporation (6762.T): How It Makes Money
TDK generates revenue by designing, manufacturing and selling a broad range of electronic components and systems used across consumer electronics, automotive, industrial equipment and communications infrastructure. Its commercial model combines product sales, licensing, system solutions and strategic partnerships to capture growth in electrification, connectivity and AI-enabled devices.- Core product lines include passive components (capacitors, inductors, ferrite cores), sensors and sensor systems, power and energy devices (batteries, power modules), magnetic application products, and electronic materials.
- Growth engines: automotive electrification (EV powertrain, ADAS sensors), data center and telecom infrastructure, and emerging AR/smart-glasses driven by AI integration.
- Revenue streams: direct component sales to OEMs, systems and modules for OEM integration, licensing/IP, after-market/service contracts, and revenue from acquired niche technology firms.
| Fiscal metric / Segment | FY2024 (approx.) | Share of total revenue |
|---|---|---|
| Total revenue | ¥1.48 trillion (~$10.0 billion) | 100% |
| Passive Components | ¥518 billion | 35% |
| Sensors & Sensor Systems | ¥296 billion | 20% |
| Energy Devices & Power Solutions | ¥266 billion | 18% |
| Magnetic Application Products / Electronic Materials | ¥178 billion | 12% |
| Other segments & services | ¥222 billion | 15% |
- Strategic moves strengthening revenue mix:
- 2025 acquisition of U.S. smart-glasses company SoftEye - positions TDK to monetize AR hardware + AI software integration in wearables and enterprise solutions.
- Partnership with McLaren Racing in Formula E - enhances credibility and technical know-how in EV systems and high-efficiency power electronics.
- Sustainability credentials: named a 'Yearbook Member' in The Sustainability Yearbook 2025 by S&P Global, supporting appeal to ESG-focused customers and investors.
- Market recognition: in 2025 TDK was named the 'Most Honored Company' in the electronic components sector by Extel, reinforcing strong brand and customer trust.
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