Against the backdrop of Nidec's crisis, after it was designated as a security under special caution over accounting irregularities in 2025 and a third-party committee report in spring 2026 determined the cumulative impact at approximately ¥160.7 billion, this article highlights 20 stocks positioned to benefit from diversified procurement sources and replacement demand.
Nidec, which makes motors, fan motors and automotive components, was designated by the Tokyo Stock Exchange as a security under special caution following accounting irregularities uncovered in 2025. A third-party committee report released in spring 2026 determined that the cumulative impact on net income was approximately ¥160.7 billion. As concerns over quality issues mounted, the report identified 844 improper acts within the Nidec group, including changes to materials, processes and designs, and found that 60 of them may have violated laws and regulations.
In response, customers in sectors such as automobiles, consumer electronics and data centers are increasingly considering diversifying or bringing procurement in-house, and securing alternative suppliers at an early stage is regarded as important. Nidec is proceeding with a downsizing and divestment of its businesses, including the dissolution of its Chinese joint venture for EV drive systems, while also facing the need to consider the automotive sector, where customer approval processes are particularly important.
This article covers 20 stocks, from large to small caps, not only in areas that directly compete with Nidec, such as small motors, fans, industrial motors and gear reducers, but also in the supply of components supporting motor manufacturers, including motor cores, winding machines and magnets. The selection includes companies such as MinebeaMitsumi and Mabuchi Motor, which compete or have complementary relationships with Nidec in the automotive and consumer electronics sectors.