Japan’s largest electronic component suppliers reported record profits in fiscal 2022, which ended in March of the calendar year, he writes Nikkei Asian Review. A year later, the boom triggered by the pandemic turned into a recession, and now market participants are betting on the electric vehicle segment.
Image source: TDK
By March next year, Japan’s eight largest electronics suppliers expect their consolidated net income to rise 8% to $6 billion for the first time in two years. Kyocera representatives in particular expect net profit growth of 13% precisely because of the automotive segment. Nidec, TDK, Nitto Denko and Alps Alpine are also hoping for a rebound in positive earnings momentum.
TDK expects earnings growth of 29% and a record high as the company sees strong demand for multilayer ceramic capacitors and magnetic sensors. At the same time, the company’s management sees good growth potential in the electric vehicle segment, with the exception of batteries. Electric traction motor maker Nidec is also looking to post record profits this fiscal year as its E-Axle family of engines is in high demand.
Five of the largest suppliers of electronic components in Japan saw a 22% increase in sales in the automotive sector last fiscal year. In terms of the turnover structure, this type of activity increased its share by three percentage points to 24%. At the end of last year, global sales of electric vehicles increased by a factor of one and a half to more than 10 million cars. According to the International Energy Agency, they will grow to 14 million units this year.
Murata, a major supplier of ceramic capacitors, expects net income to fall 30% as troubles in the smartphone market outweigh potential gains from growth in the electric vehicle market. Rival Taiyo Yuden reports a 66% drop in net profit. According to Murata management, after the current crisis, it will take several years for the smartphone market to reach 1.3 million units per year.
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