TOKYO - As global uncertainty continues to grow, Japan’s electronic components industry has been quietly strengthening its presence on the world stage. A closer look at technologies recognized by Apple reveals Japan’s current position as a critical hub in the global supply chain.
Once again this year, Japan was abuzz with excitement over Apple’s latest product launch.
The iPhone 17, released in September 2025, drew attention for its new features and design, but what lies inside the device remains largely unknown to most users.
At a warehouse in Tokyo, a company specializing in the teardown and analysis of electronic devices disassembles everything from personal computers to gaming consoles at the request of corporate clients, compiling detailed reports.
“This is the iPhone 17 Pro and Air,” said Kashio Nansho, CEO of Fomalhaut Techno Solutions.
The company disassembled the latest iPhone immediately after its release. What they found was striking.
“In the case of the iPhone, most of the components are made in Japan. Smartphones simply cannot be built without Japan,” Kashio said.
Nearly 1,300 Japanese-made parts are used in the latest iPhone, underscoring the country’s overwhelming presence in the device.
“With concerns recently raised over tensions surrounding Taiwan, if anything were to happen in China, Japan’s position as a supplier of electronic components would become even more important,” Kashio added.
Among the most prominent components is a sensor in which Japan holds a commanding lead.
“Japan is especially strong in camera-related components. One key example is TDK’s TMR, or tunneling magnetoresistance sensor,” Kashio said.
TMR sensors play a vital role in camera autofocus and image stabilization. They are produced by TDK, one of Japan’s leading electronic components manufacturers.
At the World Athletics Championships held in Tokyo in September 2025, the TDK logo was visible on the athletes’ chests, a reminder of the company’s growing global presence.
That same month, TDK President Noboru Saito was photographed introducing the company’s technology to Apple CEO Tim Cook. The meeting took place at Apple’s confidential research facility in Yokohama, where four Japanese manufacturers were invited to showcase their technologies. Cook reportedly praised each of them directly.
TDK, once best known for cassette tapes, has transformed itself over the decades. The company’s resurgence has drawn renewed global attention.
Inside a TDK factory in Nagano Prefecture, television cameras were allowed in for the first time. After passing through air showers and strict cleanliness controls, only carefully screened personnel are permitted inside the cleanroom.
While most manufacturing processes remain confidential, one machine used to shape critical components was shown.
“This device forms the essential patterns for TMR sensors,” said Noriyuki Ito, general manager of TDK’s TMR sensor manufacturing division.
Through multiple precision processes, the components are reduced to a size smaller than a grain of rice—so small they can barely be seen on a fingertip.
“All of our most advanced technology and passion are packed into something this small,” said Hayato Miyashita, head of TDK’s TMR sensor business. “That is our strength.”
Apple has highly valued this concentration of cutting-edge technology.
TDK’s rising profile is also reflected in growing expectations from the United States. Commerce Secretary Gina Raimondo has stated that TDK produces electronic components and power modules essential to AI infrastructure valued at approximately 250 billion dollars, signaling strong interest in further investment.
TDK’s growth has been driven by constant adaptation.
“Society is constantly transforming, so we must continue to transform as well,” said President Saito.
Founded in 1935 to commercialize ferrite, a magnetic material well suited for electronics, the company has repeatedly shifted its core products to match changing times. Today, smartphone components such as TMR sensors are driving its expansion.
Another key to its success has been aggressive acquisitions.
“We have been pursuing M&A for 40 years, but especially over the past decade, many new partners have joined our group,” Saito said.
One notable acquisition was a Chinese battery maker purchased in 2005 for around 10 billion yen. That company now commands roughly 60 percent of the global market for smartphone batteries.
Through such acquisitions, TDK has expanded to 141 group companies worldwide. Of its more than 105,000 employees, about 90 percent are non-Japanese nationals.
Even as a global enterprise, TDK continues to bring executives from around the world together for training programs aimed at sharing common values.
At the core of those values is what the company calls the “ferrite tree,” a concept rooted in its foundational expertise in magnetic materials.
“From magnetic materials, our business has branched out like a tree into cassette tapes and many other products,” Saito said. “That evolution defines who we are today.”
By dominating specialized niches rather than mass markets, Japan’s manufacturers continue to prove that small components can carry enormous global influence.
Source: TBS
