Historically recognized for its cassette tapes, TDK has evolved into the world's leading supplier of smartphone batteries. The company is actively enhancing its passive components and sensors divisions, with a focus on strengthening its role within the EV supply chain.
TDK's technology is integrated into the Nissan e-4ORCE 05 vehicles utilized by McLaren, and the company is exploring opportunities to provide components such as inverters and sensors, according to an executive.
"Formula E technology represents the forefront of electric vehicles, and we aim to have our components utilized in this space to refine our technology," stated Taro Ikushima, CEO of TDK's Electronic Components Business Company, in a recent interview.
Automotive sales contribute nearly 25% of TDK's total revenue, which has been in operation since 1935, making it a prominent supplier of components like ceramic capacitors and temperature sensors.
While many enthusiasts remain loyal to Formula One and its iconic internal combustion engine sounds, interest in Formula E is on the rise.
The pace of the transition from gasoline-powered vehicles is a topic of discussion, with Toyota chairman Akio Toyoda suggesting that the global market share of electric vehicles may peak at 30%.
TDK identifies significant potential across various segments, noting that plug-in hybrids and battery electric vehicles require 60% and 100% more multilayer ceramic chip capacitors, respectively, compared to gasoline vehicles.
"Safety, durability, and longevity are critical factors in the automotive sector, and these principles can be applied to other industries as well," Ikushima remarked.
TDK's stock has surged by 39% this year, significantly outperforming the 13% increase in Japan's broader Topix index.