NICHICON CORPORATION

Business Details

Manufactures and sells aluminum electrolytic capacitors (including Conductive Polymer Aluminum Solid Electrolytic Capacitors / Conductive Polymer Hybrid Aluminum Electrolytic Capacitors), Film Capacitors for xEV, Film Capacitors for Power Electronics, and Small Lithium-ion Secondary Batteries. Supplies products to four priority markets: "automotive/vehicle-related equipment," "information and communications equipment," "white goods/industrial inverter equipment," and "energy, environment and medical equipment." In addition to multiple domestic plants, production sites are located in Malaysia and China (Wuxi and Suqian), and the company promotes worldwide integrated business operations through a mother-plant system and centralized sales control system.

Recent Overview

Driven by AI server and automotive demand, both net sales and operating profit increased significantly

In the Capacitor Business for FY2026 (ending March 2026), net sales increased to ¥102,748 million (up 3.6% year on year) and segment operating profit increased to ¥4,598 million (up 196.3% year on year), representing increased revenue and profit. Against a backdrop of active capital investment for generative AI servers and data centers, demand expanded for Conductive Polymer Aluminum Solid Electrolytic Capacitors / Hybrid Aluminum Electrolytic Capacitors and Large-sized Aluminum Electrolytic Capacitors for AI server power supplies. Film Capacitors for xEV emerged from the adjustment phase in the first half and recovered from the second half onward. Demand for industrial inverter applications showed a recovery trend as customer inventory drawdown progressed. An impairment loss of ¥957 million was recorded (versus ¥1,820 million in the prior period).

Key Products

Growth Drivers

• Expanding demand for Conductive Polymer Aluminum Solid Electrolytic Capacitors/Hybrid Aluminum Electrolytic Capacitors and Large-sized Aluminum Electrolytic Capacitors for AI server power supplies, driven by further active capital investment for generative AI servers and data centers
• Continuation of the expanding demand trend for automotive capacitors (Conductive Polymer Hybrid Aluminum Electrolytic Capacitors) for ADAS (Advanced Driver Assistance Systems) and electrification units
• Recovery from the second half onward for Film Capacitors for xEV, having emerged from the adjustment phase, including the start of mass production of new projects, and strengthening of the supply structure through increased production capacity
• Recovery in demand for Large-sized Aluminum Electrolytic Capacitors for industrial inverter equipment as customer inventory drawdown progresses
• Strengthened competitiveness through worldwide integrated business operations enabled by reinforcing the mother-plant system and centralized sales control system

Risks

• Impact on demand for Film Capacitors for xEV from a slowdown in BEV growth expectations and revisions to production plans by finished vehicle manufacturers
• Signs of impairment recognized in part of the manufacturing fixed assets of the Capacitor Business, with the possibility of additional impairment losses (an impairment loss of ¥957 million was recorded in FY2026 (ending March 2026))
• Risk of increased manufacturing costs due to upward pressure on material prices
• Impact on sales to the Greater China region (¥45,098 million, approximately 26.6% of total company sales) from the continued economic slowdown in China
• Impact on the supply chain and demand from US tariff issues and geopolitical risks