Jan 16 (Nikkei) - Japanese electronic parts manufacturers are making big investments to scale up output of components for electrified vehicles, seeking to establish a place in the coalescing supply chains for the rapidly growing field.
TDK expects to budget more than 520 billion yen ($5.01 billion) over three years starting in April to boost production of batteries and other products for the clean energy field, while Rohm is quintupling capacity for next-generation chips used in electric vehicles.
EVs reportedly require two-thirds fewer components than conventional automobiles, sparking anticipation that car manufacturers eventually will outsource even different portions of assembly such as the body.
That shift would overhaul the traditional Japanese supply framework of automakers buying components from affiliated parts makers, spurring electronic parts companies to pursue business in the expanding market.
TDK, which is hammering out a new medium-term plan, intends to shift where it spends money during the coming three years.
"Rechargeable batteries, which do not waste energy, will form the core of growth," President Shigenao Ishiguro told Nikkei in an interview, with TDK to shift from lithium-ion smartphone batteries to EV batteries in line with the global move from fossil fuels to cleaner energy sources.
TDK ranks as the world's top producer of smartphone batteries, but market saturation is prompting the Tokyo company to shift focus to high-capacity batteries.
TDK will step up production of power cells used in increasingly popular electric motorcycles and scooters.
To this end, TDK will bolster output of batteries for electric motorcycles and scooters, which are gaining fans in China and Southeast Asia, while churning out more batteries for household use. The company also seeks to cultivate demand for charging components among electric vehicle makers.