NICHICON CORPORATION
6996・Prime Market・Electric Appliances
Business
Nichicon Corporation, founded in 1950 and headquartered in Kyoto, is an electronic components and energy equipment manufacturer operating two segments: the Capacitor Business and the NECST Business. In the Capacitor Business, the company manufactures and sells aluminum electrolytic capacitors (including conductive polymer types), film capacitors, small lithium-ion secondary batteries, and other products, supplying automotive, information/communications, and industrial inverter applications. In the NECST Business, the company handles residential and industrial energy storage systems, V2H Systems, EV rapid chargers, switching power supplies, and medical/academic special-purpose power supplies, among others. The company has 25 subsidiaries and 3 affiliated companies in Japan and overseas, with an overseas sales ratio reaching 50.7% (FY2026, ending March 2026). Major customers include automakers, information/communications equipment manufacturers, and energy-related businesses.
Business Model
The Capacitor Business combines a mother-factory system with an integrated sales structure, producing high-value-added products at domestic manufacturing sites while selling globally through local subsidiaries in Asia, the Americas, and Europe. In the NECST Business, environmentally related products such as residential energy storage systems are rolled out in the domestic market in coordination with government subsidy programs, while Large Special-purpose Power Supplies are supplied to academic and medical institutions on a build-to-order basis. The company invests ¥7,279 million annually in R&D (FY2026 (ending March 2026)) to maintain product competitiveness.
Company Strengths
The company has launched the industry's highest-standard 125°C/12,000-hour guaranteed chip-type Conductive Polymer Aluminum Solid Electrolytic Capacitors "PCY series," as well as the "GYG series," which achieves three ranks higher capacitance and 1.8 times higher ripple performance compared to conventional products. The company possesses the technological foundation to independently develop and mass-produce high-value-added products for AI servers and automotive ECUs.
The company has built a vertically integrated system in which it independently develops and manufactures metal-deposited film, a key material for DC-LINK capacitors for xEV. By combining high withstand voltage and large current capability with module design technology tailored to each vehicle model, the company has achieved adoption in numerous vehicle models by domestic and overseas manufacturers. Investment to expand production capacity is also ongoing.
The "SLB series" has been a bestselling product, with cumulative shipments exceeding 50 million units since sales began in 2019. Its safety, characterized by an extremely low risk of smoke or fire in abnormal situations, has been well received, and expansion into new markets, such as applications combined with energy harvesting, is also progressing.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥184,725 million in FY2023 (ended March 2023) and has declined for three consecutive fiscal years, reaching ¥169,724 million in FY2026 (ending March 2026), down 3.4% year on year. Operating profit, however, turned upward, rising 24.1% year on year to ¥6,456 million, reversing two consecutive years of profit decline. The gross profit margin improved from 16.1% in the previous fiscal year to 17.7%, mainly due to a sharp recovery in the profitability of the Capacitor Business (segment operating profit up 196.3% year on year). The NECST Business posted lower revenue and profit due to delays in launching new Residential Energy Storage System products and tariff issues affecting Switching Power Supplies, among other factors. As for external factors, increased investment in generative AI boosted demand for capacitors, while the slowdown in the Chinese economy and U.S. tariff issues weighed on the NECST Business. Comprehensive income increased substantially to ¥12,335 million from ¥4,040 million in the previous fiscal year, aided by improvements in foreign currency translation adjustments and valuation difference on available-for-sale securities.
Growth Strategy
Advancing product lineup enhancement and production capacity expansion centered on three growth themes: AI, automotive, and decarbonization
Promoting the expansion of the product lineup and establishment of mass-production capabilities for Conductive Polymer Aluminum Solid Electrolytic Capacitors/Hybrid Aluminum Electrolytic Capacitors and Large-sized Aluminum Electrolytic Capacitors for AI server power supplies. Continuing to strengthen the supply system, including accelerating the business cycle from development to mass production, in order to expand orders in priority growth markets.
Film Capacitors for xEV emerged from an adjustment phase and began mass production of new projects in the second half of FY2026 (ending March 2026). A portion of the ¥6,001 million allocated to the Capacitor Business within the FY2026 (ending March 2026) capital expenditure will be directed toward expanding production capacity and securing further new projects. Medium- to long-term demand growth is expected against the backdrop of increasing numbers of Japanese and imported EVs.
Sales of the Tribrid Energy Storage System "ESS-T5/T6 series" began in the second half of FY2026 (ending March 2026). While aiming to capitalize on synergies with government and local government subsidy programs, revenue declined in the current fiscal year due to delays in the launch timing of new products. In FY2027 (ending March 2027), the company aims for full-scale contribution from these products and expansion of its energy management solutions business, including support for GX ZEH and VPP deployment.
By strengthening the mother factory system and centralized sales management system, the company is building a worldwide integrated structure spanning development, manufacturing, and sales, aiming to respond swiftly to customer requirements and enhance competitiveness. In FY2026 (ending March 2026), capital expenditure of ¥7,568 million was implemented, continuing investment in technology and development as well as production capacity expansion.
Last updated: July 19, 2026