Strategies by Business（Wireless and Communications, Micro Devices）
Strategies by Business Wireless and Communications Business
Target Directions
We intend to build a profitable portfolio centered on the provision of social infrastructure systems and after-sales services.
- ・Create synergies by leveraging the strengths of the Japan Radio Group and KOKUSAI DENKI Electric Group* (image recognition technology, 5G wireless communication technology, etc.)
- ・Boost business profitability through continuous portfolio reviews
- ・Improve cash flow generation capability and profitability through cost structure reforms and inventory reduction
- ・JRC Mobility will prepare for the next stage by preparing for connected, sensing systems, mobility infrastructure, and other growth areas.
* Dec. 2023: Became a consolidated subsidiary
Quantitative Targets
Business Overview
Business structure
- ・This business comprises the Japan Radio Group and the KOKUSAI DENKI Electric Group*.
- ・The core of the Japan Radio Group is Marine Systems, Solutions and Specialized Equipment, and includes JRC Mobility and others (JRC Mobility, ICT mechatronics, medical equipment, and others)
- ・The KOKUSAI DENKI Electric Group* consists of the solutions, products, and specialized equipment businesses, including DX, infrastructure (social infrastructure), and railways.
* Dec. 2023: Became a consolidated subsidiary
Business characteristics
- ・Focusing on marine systems, solutions, and specialized
equipment, the business has the following characteristics.
- Many businesses have high continuity and stability, such as the provision of social infrastructure systems and after-sales services, so are less susceptible to economic trends and deliver stable earnings.
- These are asset-light businesses that do not require large investments in factories and production facilities.
Sales composition (fiscal 2026, billions of yen)
Strategies by Business Micro Devices Business
Target Directions
Contribute toward the resolution of issues faced by society and customers by creating customer value leveraging the value we have provided through analog technology
- ・Maintain sales expansion by capturing growth in the analog semiconductor market
- ・Improve profitability through a shift to high-function products such as multi-functional ICs and modules
- ・Develop analog solution devices utilizing distinctive sensors such as sound, smell, and microwave
- ・Develop unit and digital business development with a view to the future through collaboration among technologies within and outside the Group, in addition to existing technologies in the areas of electronic devices and microwaves
Quantitative Targets
Business Overview and Strategy
Business characteristics
- ・We develop analog semiconductor products such as power control system ICs, operational amplifiers, and sensor signal processing ICs.
External environment
- ・In 2022, the analog semiconductor market was worth approximately ¥13 trillion.
-
・The market is expected to grow at a CAGR of slightly
less than 10% between 2012 and 2014.
- Demand for industrial and consumer applications is expected to recover in the second half of 2024, while the demand for automotive applications is expected to continue to recover following semiconductor shortages.
Main customers
- ・Consumer: Smartphone, PC and AV equipment manufacturers
- ・Industrial: Manufacturers of industrial equipment and robots
- ・Automotive: Manufacturers of automobiles (including automotive parts)
Strengths
- ・Ability to respond to customer issues and strong customer relationships
- ・High market share for products in multiple niche markets (operational amplifiers, comparators, LDOs, microwave electron tubes, etc.) and core technological capabilities such as low power consumption, low noise, high precision, etc.
- ・Flexibility and quality stability through integrated front-end/back-end production
Value provided
- ・We contribute toward improvements in energy efficiency and reduction in customers’ environmental impact through the development of products that take advantage of low power consumption, high efficiency, and other technological capabilities.
Key measures under the medium-term management plan
- ・Expand our market share in products for automotive and industrial equipment where the operating environment is low in volatility and development cycles are long
- ・Build relationships with customers who will become new strategic partners
- ・Promote collaboration through M&A and business alliances to strengthen digital technology
- ・Shift to multi-functional and modular products
Capital expenditure and R&D
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・More investment to reinforce the production system
- Capital investment in plants, mainly for back-end processing
- Expand use of foundries and OSAT
- ・New product development through collaboration and technology integration with Group companies
- ・Research and development for modularization and unit/digital business