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Annual Report 2016

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Annual Report 2016 TDK UNLIMITED POTENTIAL ANNUAL REPORT 2016 English Version Invention1930 of IEEE Milestone plaque Ferrite—An original Japanese magnetic “Ferrite” material, while pursuing and expanding the possibilities of ferrite, TDK’s own scope of The electronic material “ferrite” is a unique activities grew ever more varied, advancing Japanese invention, born out of research with ferrite into various sectors of the industry. done in 1930 by Dr. Yogoro Kato and Magnetic tape technology that dramatically Dr. Takeshi Takei of the Tokyo Institute of altered the patterns of musical enjoyment, fine Technology. Seventy-nine years later, in 2009 multilayering technology that resulted in much the discovery and application of ferrite was smaller and lighter electronic devices, HDD designated as an IEEE Milestone, an award magnetic head technology that produced that recognizes key historical achievements in astoundingly high data recording densities— electrical and electronic engineering, which these are some of the TDK innovations that have had a sustaining and significant impact have had a lasting worldwide impact. The on the industry and on society. history of TDK is closely interwoven with mag- netics technology. By continuously improving, perfecting, and innovating in this field, TDK continues to bring forth extraordinary and 1935 unique products. Magnetic tape HDD magnetic head “Genuine industries are original industries”; this pronouncement by Dr. Kato inspired Kenzo Saito to found TDK (originally known as Tokyo Denki Kagaku Kogyo K.K.) with the Magnetics technology leads to improvement in product performance purpose of turning ferrite into a commercial product. At the time, ferrite was still an High permeability IFL16 noise suppression sheet unknown quantity, and its first application This magnetic shielding material used in electronic was a so-called “ferrite core.” In 1937, components in smartphones and similar devices is Kenzo Saito, before coming into use in other countries, made of a magnetic material combined with resin. TDK’s first president DNAferrite cores became part of wireless trans- A magnetic sheet capable of absorbing the noise of mitters and radios in Japan. The spirit of a wide frequency range and turning it into thermal “creating value that does not yet exist in the energy is highly useful, both for preventing internally world on a material level” has characterized produced noise from being reflected and affecting other components inside TDK from the beginning, and it still defines a device and from leaking outside the device and affecting other devices. the DNA of the company today. Annual Report 2016 1 Materials Design Technology STRENGTH STRENGTH The driving factor behind TDK’s product power is TDK handles the Monozukuri process of manufacturing superior materials technology. Shaping the characteristics in a unified in-house framework, ranging from materials of the material at the atomic level makes it possible to to the final product. One of the reasons why TDK’s achieve exactly the targeted properties for a given spirit of craftsmanship oriented manufacturing, i.e., product. This approach1 requires mastery of complex Monozukuri, works so4 well is the fact that we develop composition processes and control of additives which our own methods and then build the equipment to cannot be easily copied by competitors. By keeping Materials Monozukuri implement them. In order to create products that truly intellectual property and know-how in-house, we are meet the demands and expectations of customers, we establishing a competitive advantage. Technology Power have established optimized processes for materials composition and we develop and design products based on thorough materials analysis, as well as simulation analysis of such aspects as structure, heat, electromag- netic fields, among others. At the same time, we also establish an optimized framework for mass production. Development Evaluation and Design and Simulation Powder Control Technology Microstructure Control Technology INTEGRATED PRODUCTION Materials Front-end process Back-end STRENGTHS process Sintering Technology Forming Technology STRENGTH STRENGTH TDK’s famous process technology can be defined as the TDK has absorbed and integrated various technologies art of realizing products that maximize the characteristics and value on a global scale. We consider acquired of the raw materials used in them. Operating on the companies as valuable partners to whom we actively nanometer level, the technology has enabled break- give the leading initiative for technology development in through developments2 such as chip capacitors and their areas of expertise.3 This complements our own chip inductors with amazingly small dimensions and resources and expertise, opening up new avenues of low profiles. TDK process technology is a versatile key sustained growth and strengthening both sides through competence that meets a multitude of advanced needs. the power of synergy. That is the rationale behind our M&As and technology alliances on a global level. Amazing HDD magnetic head technology Process Power of Representative Acquisitions and Strengthened Air pressure created by fast Business Fields disk rotation causes the magnetic When compared to a jet aircraft heads to “fly” at a tiny distance Technology Synergy over the platter surface. 1986 SAE Magnetics (Hong Kong) The flying height of 1.25mm 70.66m the magnetic head 2000 Headway Technologies (USA) Magnetic heads About 10nm About 0.56mm 2003 Innoveta Technologies (USA) 2005 Amperex Technology (Hong Kong) 2005 Lambda Power Group (United Kingdom) Magnetic disk 2007 Magnecomp Precision Technology (Thailand) In order to read and write the information in a very small area of the 2008 EPCOS (Germany) disk, the head must approach the surface at an extremely close limit 2016 Micronas Semiconductor (Switzerland) but without making contact. The clearance between the head and the disk is less than 10 nanometers, which could be compared to a large 2016 Hutchinson Technology (USA) passenger jet flying at only 0.56 millimeters above the ground. Thin-Film Process Technology Thick-Film Process Technology 2 TDK Corporation Annual Report 2016 3 Business Model Development of magnetic and Tireless Innovation through thin-film technology Application and Diversion 1935 1994 2003 Ferrite core HDD magnetic head Thin-film common mode filter Four great world-class innovations by TDK Further development of process technology Passive Components Applied Products Strategic growth products HDD magnetic heads Ferrite cores Thin-film electronic components TMR sensor DC-DC converter Semiconductor embedded Transformers SESUB 1966 1980 for xEV substrate (SESUB) Magnetic tape Fine multilayering technology Materials Neodymium magnets Technology Inductors Monozukuri Power Ferrite magnets Actuator for Wireless power Thin-film capacitor camera module transfer coil unit (TFCP) for embedding Aluminum electrolytic in substrate capacitors Film products Film capacitors Power supplies 1 Core Competence Magnetism 4 2 3 Ceramic capacitors Wireless power transfer Rechargeable batteries High-frequency components and modules INNOVATION MEMS applied products Using its core competence in magnetics technology as an axis, TDK has been harnessing materials Process Power of Technology Synergy Sensors Magnetic sensors technology for shaping the characteristics of a material already at the atomic level, in conjunction with process technology that maximizes its potential. This has enabled us to consistently deliver EMC components Flash storage applied products products at the leading edge of technology. Taking aboard ideas under the “Industry 4.0” concept and combining them with our zero defect quality approach that uses upstream management to VCM/OIS Piezoelectric material eliminate quality variations, we are further strengthening our Monozukuri power. products Radio wave absorbers, The pace of change in the electronic components industry is very rapid. To remain competitive anechoic chambers Circuit protection in this field, a company needs to continuously evolve and innovate. Looking toward the future, TDK components Manufacturing equipment will leverage its core competence in magnetics for the development of next-generation technology, and we will further elevate the sophistication level of our integrated production to ensure utmost reliability. In this way, we will continue to deliver products that contribute to the evolution of society. 4 TDK Corporation Annual Report 2016 5 Our Past Nonlinear Progress Nonlinear Progress to Come In the rapidly evolving world of electronic components, simply doing In anticipation of the coming IoT society, we are building a strategic portfolio centered “business as usual” is out of the question. Aiming to contribute to society and around the development of “sensors and actuators,” “energy units,” and create true value, TDK has devised various strategies and tackled a number of “next-generation electronic components.” difficult challenges so far. Guided by a long-term and environment-oriented Demand for HDD magnetic heads, which used to be a driver for TDK’s growth, is perspective, we have continued to vary our business portfolio to meet the needs currently stagnating and the smartphone market has also matured. The creation of of the times. Accordingly, our key products also underwent significant changes new areas of business therefore is paramount. We will be aggressively expanding our along the way. activities in the automotive and industrial equipment
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