Expanding Profitable Products Across Five Product Segments

「当社は、Vision2030の達成に向け、中期経営計画で掲げるポートフォリオ変革（「Five Pillars + One」）を推進しており、その実現に向けて研究開発費等の先行投資を継続しております。」

「By application, automotive applications, which account for more than half of revenue, maintained high sales levels in the second quarter amid expanding demand related to ADAS (advanced driver assistance systems), and first-half consolidated revenue increased year on year. In industrial equipment, second-quarter sales grew further, primarily for optical transceivers, amid expanding demand related to AI data centers, and first-half consolidated revenue was approximately twice the prior-year level. Meanwhile, mobile communications revenue declined due to weak demand for Chinese-brand smartphones. Revenue from specialty equipment, centered on defense applications, also declined as a reaction to the concentration of sales in the fourth quarter of the previous consolidated fiscal year.」

「During the consolidated fiscal year, we narrowed down promising areas and organized our development roadmap through market research, technology trend research, and patent research. From the following consolidated fiscal year onward, we will promote initiatives toward commercialization while conducting phased evaluations and making decisions.」

「By application, revenue from industrial equipment increased at a faster-than-expected pace as demand related to AI data centers remained solid. In the specialty equipment market, centered on defense applications, revenue also rose significantly year on year.」

「We formulated a three-year medium-term management plan beginning in fiscal 2025 (the fiscal year ending March 2026) and established the following concept as a key initiative: the “Five Pillars + One” concept.」

「Mobile communications applications, which account for approximately 20% of our revenue, generated higher-than-expected sales, primarily to major smartphone manufacturers, and increased year on year. In industrial equipment, sales for data centers also exceeded expectations amid expanding demand for generative AI, and revenue exceeded the prior-year level.」

「Sales of crystal resonators declined from the previous fiscal year for smartphones and consumer applications. As a result, revenue was ¥35,916 million, down 5.0% year on year. Sales of crystal oscillators increased from the previous fiscal year for clock applications in automotive ADAS. However, sales for data centers and base stations declined. As a result, revenue was ¥8,521 million, down 7.4% year on year.」

「Sales of crystal resonators declined for smartphones and consumer applications. As a result, revenue was ¥26,922 million, down 5.8% year on year. Sales of crystal oscillators increased for clock applications in automotive ADAS. However, sales for data centers and base stations declined. As a result, revenue was ¥6,528 million, down 11.2% year on year.」

「Sales of crystal resonators declined for smartphones and consumer applications. As a result, revenue was ¥17,616 million, down 6.5% year on year. Sales of crystal oscillators increased for clock applications in automotive ADAS. However, sales for data centers and base stations declined. As a result, revenue was ¥4,396 million, down 9.9% year on year.」

「Sales of crystal resonators increased for high-end smartphones in the 76.8 MHz band, but sales for automotive and consumer applications declined. As a result, revenue was ¥8,223 million, down 6.6% year on year.」

「Revenue from industrial equipment applications, which accounts for approximately 10% of total revenue, increased year on year for crystal oscillators used in data centers. Revenue from IoT and factory automation applications also increased year on year.」

「Revenue from industrial equipment applications, which accounts for approximately 10% of total revenue, increased year on year for crystal oscillators used in data centers. Revenue from IoT and factory automation applications also increased year on year.」

「To shift from structural reform to a growth phase and achieve further enhancement of corporate value, we brought forward the period of the previous medium-term management plan by one year and formulated a new medium-term management plan.」

「Mobile communications applications, which account for just under 20% of revenue, saw increased sales of 76.8 MHz crystal resonators with built-in thermistors for 5G smartphones and ultra-small crystal resonators, supported by investment to increase production.」

「Although sales to a Chinese communications equipment manufacturer declined in the third quarter due to the impact of tighter U.S. export restrictions on Chinese communications equipment manufacturers, cumulative consolidated revenue for the first three quarters increased year on year for both industrial equipment and mobile communications applications.」

「From a medium- to long-term perspective, the 5G (fifth-generation mobile communications system) market is expected to enter full-scale operation. As frequencies move higher with 5G, demand for higher-precision crystal devices than ever before is expected to increase. In addition, the installation of ADAS (advanced driver assistance systems) equipment in vehicles is expected to increase the number of crystals installed per vehicle.」

「Communications services based on the next-generation high-speed communications standard, 5G, are finally expected to begin taking off this fiscal year, creating a major business opportunity for us. The 5G businesses we are targeting include mobile phone base stations, which form the infrastructure for 5G systems, 5G-compatible smartphones, autonomous driving, and IoT. Demand for these applications is expected to increase substantially going forward, and we will advance product development and expand sales.」

「Our group will make businesses expected to develop around 5G (the next-generation high-speed communications standard) systems the pillars of the new NDK. The 5G-related businesses we are focusing on are autonomous driving/ADAS (advanced driver assistance systems), IoT (the Internet of Things), and the 5G base-station market, and we will allocate resources primarily to these segments. We will also develop ultrasonic equipment, frequency synthesizers, sensors, and other high-value-added products using crystal device technology for automotive applications as our second and third future pillars of earnings after automotive products. Meanwhile, we will scale back sales for mobile communications and consumer applications.」

「Our policies and issues to be addressed by market and product are as follows: ① Automotive market ② Industrial equipment market ③ Mobile communications market ④ SAW devices ⑤ Ultrasonic equipment and sensors」

「By strengthening new product development and bringing products to market in the following five product segments, we will increase the number of products that generate profits, earn high recognition and trust from customers, and work to return to ¥50 billion in annual revenue.」