ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

TDK bringing production back to Japan thanks to weak yen

TOKYO -- TDK will build large factories in its home country of Japan for the first time in eight years, taking advantage of the improved profitability of domestic production brought on by a weaker yen.

     The company plans to spend 25 billion yen ($208 million) on the facilities, which are expected to start churning out electronic components for smartphones and automobiles in late 2016.

     The factories will be built on the grounds of TDK's Honjo and Inakura plants in Akita Prefecture. The new Honjo facility, to have roughly 50,000 sq. meters of floor space, will output such products as radio frequency components for smartphones. The new Inakura facility will have around 15,000 sq. meters of floor space and make ferrite magnetic materials and other products.

     Both new factories will boast next-generation production equipment with built-in sensors allowing for online monitoring and remote operation. By collecting and analyzing operational data, TDK will determine optimal operating conditions and thus boost productivity. The company plans to gradually introduce this technology in overseas plants as well.

     Between 2009 and 2011, TDK consolidated and closed many electronic component factories in Akita Prefecture in response to falling prices. This new expansion is the result of such factors as the weak yen and productivity improvements, which the company considers to have bolstered the cost-competitiveness of domestic manufacturing.

     "We want to move some of our Chinese manufacturing of products for export overseas back to Japan," says President Takehiro Kamigama. Chinese facilities now account for nearly 50% of TDK's capacity.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media