TDK’s 5 Core Technologies

Research and development costs

84.9

92.1

billion yen

TDK firmly believes that creating new products in a timely man-

ner creates value for society and also contributes to corporate

value earnings. Continued research and development efforts di-

rected at the creation of attractive and innovative products are

the very key to our company’s existence. As we move into the

future, technological innovation in our three key markets is a top

priority, and we will continue to make R&D investments targeted

at bringing forth new products of value.

To help us overcome the challenges of the current competitive environment, we

at TDK have conducted reviews and revisions of our entire business portfolio over

the past few years, implementing structural reforms including the optimization of

our manufacturing sites. Because we have made a certain level of progress on

these initiatives, we have now concluded large-scale structural reforms. By fo-

cusing our business resources on our three key markets of ICT, automotive, and

industrial equipment & energy, as well as our five priority segments as of fiscal

2014, we secure growth and make the shift to a balanced profit structure where

we can boost profits in each segment.

Contribute to the World through Technology

Main Achievements in Fiscal 2015

* Includes HDD heads and suspensions

Important CSR Issues

Basic policy

Contribute to the world through technology is a key concern for TDK. Toward this end, we are focusing on innovative

technology development in our three key markets of automotive, ICT and industrial equipment & energy, helping to

save, store, and reuse energy and solve other pressing issues that modern society is facing. Furthermore, the pur-

suit of “zero defect quality” based on superior technological competence and realized through a unified production

process that extends from the raw materials to the final product will continue unchanged also in future. Providing

high quality products and services is our way of striving for the advancement of humankind.

The importance to our company

In accordance with our Medium Term Plan which

started in fiscal 2015, we are focusing on the

three key markets of automotive, ICT and indus-

trial equipment & energy, taking advantage of our

proprietary technology development capabilities

to open up new business opportunities and real-

ize monozukuri reform. The overall aim is to offer

products that make a meaningful contribution to

society while also resulting in a sustainable im-

provement of corporate value.

TDK’s starting point was the magnetic material ferrite. Over the years, we have developed superior competence in five

core technologies that sustain our range of sophisticated and industry-leading products: materials technology, process

technology, evaluation & simulation technology, device & module technology, and production technology. This has re-

sulted in an ongoing succession of outstanding products. TDK is making full use of its worldwide network linking Japan,

China, other Asian countries, Europe, and the U.S. Specific priority operation fields have been defined for each region,

enabling us to pursue R&D at the cutting edge of technology in order to anticipate and meet highly sophisticated de-

mands. While further deepening and nurturing our core competencies, TDK is driving progress and pursuing next-gen-

eration technology targets in areas such as magnetic sensors utilizing TMR elements developed for HDD heads, wireless

power transfer systems for charging without cables, powerful next-generation magnets, and ultra-compact low-profile

SESUB modules with chips embedded in the substrate.

TDK’s Core Technologies

HDD heads

Ferrite cores

Transformers

Aluminum electrolytic

capacitors

Film capacitors

RF components and

modules

Sensors

Ferrite magnets

Film products

MEMS applied

products

Flash storage applied products

Passive

Components

Applied Products

Neodymium magnets

Inductors

Ceramic capacitors

EMC countermeasure

products

Radio wave absorbers,

anechoic chambers

Evaluation and

Simulation

Technology

Production

Technology

Materials

Technology

Process

Technology

Device & Module

Technology

Expectations by stakeholders

Responding to climate change by harnessing

TDK’s core technologies, in particular energy

conservation and renewable energy, promote

the development of new technologies and the

spread of products that help to bring about a low-

carbon society.

Sales ratio for our three key markets: automotive,

ICT and industrial equipment & energy*

Piezoelectric material

products

Circuit protection

components

Power supplies

Rechargeable

batteries

Manufacturing

equipment

TDK CSR REPORT 2016

The CeraDiode

family of multilayer varistors combines innovative micro core

technology with a new and extremely efficient semiconductor zinc oxide material

that possesses significantly more grain boundaries. The result is the world’s most

compact and flattest overvoltage protection components that are able to absorb

electrostatic pulses of up to 25kV.

Taking advantage of its technological expertise regarding TMR elements, acquired during the devel-

opment and manufacture of HDD heads, TDK has successfully created the first practical automotive

TMR angle sensor. Compared to conventional resolver type sensors, the new sensor consumes much

less energy and is not only smaller and lighter but also provides very high accuracy while being able

to withstand the extreme temperature environment that exists in a car. It can function as an essential

component for detecting the steering angle and implementing angle control in EPS motors. It is des-

tined to become a groundbreaking product for the magnetic sensor business.

Protect high-performance and extremely sensitive

chips and LEDs in smartphones from destruction by

electrostatic impulses.

Magnetic sensor with highly accurate angle detection.

Drastically smaller and lighter than earlier sensors, the product also

contributes to energy savings

ICT Network

Dr. Oliver Dernovsek (right)

Head of Multilayer Business Unit

Piezo and Protection Devices BG

Monika Haindl (left)

Engineer in PPD’s Corporate R&D team

Piezo and Protection Devices BG

Automotive

Enhance steering stability and

contribute to driving comfort

The highly efficient CeraDiode

needs significantly less ceramic,

metal and energy to manufacture.

High-performance and extremely sen-

sitive chips and LEDs used in smart-

phones, for example, need effective

protection against electrostatic impuls-

es that can occur when you touch a key,

the USB or audio jack, or even the metal

casing. The challenge is to engineer a

protection component that is tiny and

thin enough to fit in a highly integrated

device like a smartphone and yet able

to absorb up to 25 kV. This led us to fo-

cus our attention on developing a new

ceramic material and tailored processes

for the smallest case sizes. It took an

interdisciplinary R&D team of material,

process, and product development en-

gineers and operators, working closely

with product marketing managers, to

come up with the right solution. The

necessary combination of basic and

applied R&D is truly an art, but that’s

what makes my work so varied and

rewarding. Through our new develop-

ment we have created a highly efficient

CeraDiode

that needs significantly less

ceramic, metal and energy to manufac-

ture.

We asked ourselves if TDK’s renowned TMR

elements from the HDD sector might be suit-

able for creating new business opportunities

in other areas as well. This led to the start

of angle sensor development in 2009. Angle

sensors used in cars must withstand a wide

range of temperatures from very low to very

high while continuing to maintain high de-

tection accuracy and stable operation for

many years. Although based on HDD head

technology, the product concept for the

sensors underwent considerable changes.

After many interviews with customers and

countless trial and error sessions, we were

eventually able to successfully develop a

high-accuracy power-saving TMR angle

sensor that was five years in the making. The

compact dimensions and light weight of the

new sensor even make it possible to use a

redundant setup of multiple sensors, allow-

ing quick switch over in the rare event that

one should develop a problem. This is very

difficult to realize with conventional sensors.

In 2014, a major car manufacturer decided

to adopt the sensor for its electric power

steering (EPS) system, prompting us to be-

gin mass production. In future, the sensor

will also help to improve steering stability in

autonomous driving vehicles which are get-

ting closer to practical realization. But this is

only the beginning. TMR elements have the

potential for playing a useful role in solving

various issues that customers and society at

large are dealing with. We will be developing

products aimed for example at the industrial

equipment and ICT sectors, in keeping with

our motto of “Contribute to culture and indus-

try through creativity.”

Hiraku Hirabayashi

Design Team Leader

MR Sensor Development Group

HDD Heads Business Group

Magnetic Heads & Sensors Business

Company

TDK Corporation

2019

TDK CSR REPORT 2016TDK CSR REPORT 2016