TDK CORPORATION
6762・Prime Market・Electric Appliances
Passive Components
TDK's foundational business supplying Capacitors, Inductive Devices, and related products to industrial equipment, automotive, and ICT markets.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year) | ¥593,201 million | ¥559,639 million | ↑ |
| Segment profit (full year) | ¥41,831 million | ¥34,072 million | ↑ |
| Segment profit margin (full year) | 7.1% | 6.1% | ↑ |
Business Details
The Passive Components segment consists of (1) Capacitors, comprising ceramic capacitors, aluminum electrolytic capacitors, and film capacitors; (2) Inductive Devices, comprising coils, ferrite cores, transformers, and similar products; and (3) Others within passive components, comprising RF Components, Piezoelectric Material Components & Circuit Protection Components. Major customers are in the industrial equipment, automotive, and ICT markets, and the segment positions the GX/DX domain (renewable energy, EVs, Beyond 5G, etc.) as a mid-to-long-term growth opportunity. In FY2026 (ending March 2026), revenue increased year on year across all product categories, and segment profit margin also improved.
Recent Overview
In FY2026 (ending March 2026), revenue increased 6.0% year on year and profit margin improved to 7.1%, led by the industrial equipment and automotive markets.
In FY2026 (ending March 2026), Passive Components segment revenue was ¥593,201 million (versus ¥559,639 million in the prior period, up 6.0% year on year), and segment profit was ¥41,831 million (versus ¥34,072 million in the prior period, up 22.8% year on year), with profit margin improving to 7.1% (from 6.1% in the prior period). Capacitors benefited from higher sales to the industrial equipment market, and Inductive Devices from higher sales to the automotive market. Meanwhile, other passive components declined 1.3% year on year due to lower sales to the automotive market. Sluggish BEV demand continued to weigh on demand for automotive-related components.
Key Products
Growth Drivers
- Expanding demand for capacitors (ceramic, aluminum electrolytic, and film) for the industrial equipment market
- Increasing demand for Inductive Devices for the automotive market (supporting ADAS and electrification)
- Growing demand for aluminum electrolytic capacitors, film capacitors, and Inductive Devices driven by renewable energy adoption
- Expanding demand for RF components and Inductive Devices amid the transition to Beyond 5G
- Mid-to-long-term expansion in demand for passive components from the AI ecosystem market (data centers, edge AI devices, etc.)
Risks
- Risk of downside in component demand (particularly other passive components) due to continued sluggish BEV demand in the automotive market
- Risk of slower growth from delayed recovery in capital expenditure demand in the industrial equipment market
- Risk to the pace of segment profitability improvement relative to the mid-term management plan target (business ROA of 8% or higher by FY2027, ending March 2027)
- Risk of cost increases and demand volatility from US-China trade friction, additional tariff measures, and supply chain disruption
- Foreign exchange risk (profit pressure from yen appreciation)
- Geopolitical risk associated with high dependence on sales to China (approximately 55% of consolidated revenue is to China and Asia)
Last updated: June 17, 2026