Joint Venture Established for the Automotive Inverter Business

TOKYO - Friday, September 2nd 2016 [ME NewsWire]

(BUSINESS WIRE)-- TDK Corporation (“TDK”, TOKYO:6762, Representative Director and President: Shigenao Ishiguro) and Toshiba Corporation (“Toshiba”, TOKYO:6502, Representative Executive Officer, President and CEO: Satoshi Tsunakawa) have agreed to establish a joint venture (“JV”), TDK Automotive Technologies Corporation, that will engage in the development, manufacture and sales of automotive inverters for hybrid vehicles, plug-in hybrid vehicles and electric vehicles, as detailed below.
I. Reasons for establishment of the JV
Many countries propose to impose more stringent regulation of automobile exhaust emissions in 2020 and after, in an effort to prevent air pollution and global warming. This trend to stricter regulation is expected to greatly affect the global automobile market, contributing to an increase in demand for hybrid and plug-in hybrid vehicles in the global market and greatly increased use of electric, fuel-cell, and other eco-friendly vehicles.
Under such market conditions, TDK is currently strengthening its energy unit* business, which mainly consists of hardware in power conversion for hybrid, plug-in hybrid, and electric vehicles, as well as software that controls such hardware as strategic growth products in the medium to long term. TDK offers a lineup of products, such as DC-DC converters, on board chargers and wireless power transfer systems that are currently being developed. The DC-DC converter in particular utilizes the magnetic material technologies that are the strength of TDK. They are one of the smallest in the industry and offer high efficiency and other product advantages that have won global recognition and a delivery record of more than 2.5 million units in aggregate.
Upon the establishment of the JV with Toshiba as described above, TDK’s energy unit business is expected to expand tremendously, as the addition of automotive inverters to TDK’s product lineup will broaden its product range and enable to meet diverse customer demand.
Toshiba develops technologies to meet automobile manufacturers’ requirements for low fuel consumption that combine advanced capabilities in automotive inverters with 120 years of cumulative know-how in motors. By integrating power semiconductor modules, Toshiba’s inverters secure high levels of heat dissipation in a short time, and also contribute to downsizing that reduces space requirements. Toshiba aims to strengthen its competitiveness in the growing market for automotive inverters and motors by combining its highly efficient automotive motors with automotive inverters developed by the JV and DC-DC converters developed by TDK, and proposing them as a system for hybrid and electric vehicles.

II. Outline of the JV
1) Company name		TDK Automotive Technologies Corporation
2) Address of the Head Office		3-9-1 Shibaura, Minato-ku, Tokyo, Japan (within TDK Corporation)
3) Address of the business premises		2-15-7, Higashiohwada, Ichikawa-shi, Chiba, Japan (within TDK Technical Center) 2000 Nao, Mie-gun Asahi-cho, Mie, Japan
4) Main business		Development, manufacturing and sales of automotive inverters
5) Stated capital		400 million yen
6) Ratio of capital contribution		TDK: 75%; Toshiba: 25%
7) Date of establishment		October 1, 2016 (scheduled)
8) Date of business start		December 1, 2016 (scheduled)

*Energy unit
One of three strategic growth product areas (sensor/actuator, energy unit and next-generation electronic components) that TDK will strengthen in the medium- and long-term.
The energy unit develops hardware and software with power conversion, energy control and electricity storage functions.
About TDK Corporation
TDK Corporation is a leading electronics company based in Tokyo, Japan. It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's portfolio includes electronic components, modules and systems* which are marketed under the product brands TDK and EPCOS, power supplies, magnetic application products as well as energy devices, flash memory application devices, and others. TDK focuses on demanding markets in the areas of information and communication technology and consumer, automotive and industrial electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2016, TDK posted total sales of USD 10.2 billion and employed about 92,000 people worldwide.
* The product portfolio includes ceramic, aluminum electrolytic and film capacitors, ferrites, inductors, high-frequency components such as surface acoustic wave (SAW) filter products and modules, piezo and protection components, and sensors.
About Toshiba Corporation
Toshiba Corporation, a Fortune Global 500 company, channels world-class capabilities in advanced electronic and electrical product and systems into three focus business fields: Energy that sustains everyday life, that is cleaner and safer; Infrastructure that sustains quality of life; and Storage that sustains the advanced information society. Guided by the principles of The Basic Commitment of the Toshiba Group, “Committed to People, Committed to the Future”, Toshiba promotes global operations and is contributing to the realization of a world where generations to come can live better lives.
Founded in Tokyo in 1875, today’s Toshiba is at the heart of a global network of 551 consolidated companies employing 188,000 people worldwide, with annual sales surpassing 5.6 trillion yen (US$50 billion). (As of March 31, 2016.)
To find out more about Toshiba, visit www.toshiba.co.jp/index.htm

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Contacts

TDK Contacts
TDK Corporation
Sumio Marukawa, +81-3-6852-7102
Corporate Communications
pr@jp.tdk.com

or
TOSHIBA Contacts
Toshiba Corporation
Aya Oshima/Yuu Takase, +81-3-3457-2100
PR & IR Division
media.relations@toshiba.co.jp

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