Taiyo Xelcom
Basic Information
- Stock Code
- 6663
- Industry
- Electrical Equipment
- Category Detail
- Semiconductors & Electronic Components
- Prefecture
- Wakayama Prefecture
- Establishment Year
- December 1960
- Listing Year
- December 2004
- Official Website
- https://www.taiyo-xelcom.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Ibiden, Shirai Electronics Industry, Meiko, Kyoshin, AKIBA, Nippon Fenol, Nippon CMK, Teno HD, Nepon
Overview
Taiyo Xelcom is an electrical equipment manufacturer based in Wakayama Prefecture, founded in 1960, and a leading company in the industry with strengths in flexible printed circuit boards and precision inspection equipment.
Current Situation
Taiyo Xelcom recorded consolidated sales of approximately ¥3.6 billion for the fiscal year ended December 2022, posting an operating loss of ¥27.78 million, but maintained profitability in ordinary income and net income. Its core businesses are the design and manufacturing of flexible printed circuit boards and the sales of high-precision board inspection equipment, earning a reputation for multi-variety, small-lot, short-lead-time production and differentiating itself from competitors. Since 2011, it has established subsidiaries in Shanghai, China, and Bangkok, Thailand, to expand in the Asian market. In product development, it offers the A300 series of automatic visual inspection systems and the M110SC manual inspection system, showcasing its technological strength in precision inspection. In 2023, it changed its name to the current name to strengthen its brand and focus on business growth. In terms of sustainability, it is working on manufacturing site efficiency improvements and waste reduction, while actively contributing to the local community. Looking ahead, it aims to improve profitability over the medium to long term by expanding its Asian customer base centered on high-value-added product development as growth drivers.
Trivia
Interesting Facts
- Regional company with approximately 60 years of history since founding in 1960.
- Strength in short-lead-time prototyping of flexible printed circuit boards.
- Mid-sized manufacturer listed on the Tokyo Stock Exchange Standard Market.
- Major presence in electronic equipment manufacturing in Wakayama Prefecture.
- Advancing international expansion with overseas subsidiaries since 2011.
- Undertook brand refresh through name change.
- Awarded Director General of the Japan Patent Office Encouragement Prize for board inspection equipment development.
- Operates diverse businesses through consolidated subsidiary Mirac.
- Operating profit volatile in recent years, but net profit stable in black.
- Approximately 230 consolidated employees, mid-sized enterprise.
- Long-term support from the same major shareholder group.
- Targets the niche of electronic circuit boards.
- Introducing AI image recognition technology in precision inspection equipment.
- Conducts environmentally conservation activities rooted in the local community.
- Recognized for technological strength with Wakayama Prefecture Industrial Technology Award.
Hidden Connections
- Major shareholder Hosoe Holdings plays a central role in management.
- Strengthening manufacturing collaboration in Thailand and China through subsidiaries.
- Frequent collaborative exchanges with competitors Ibiden and Meiko at technology exhibitions.
- Strong relationship with Wakayama Prefecture governor aids local business advancement.
- Contributing to order expansion for small and medium electronic equipment manufacturers in manufacturing equipment field.
- Proprietary short-lead-time system is unique in Japan's high-precision printed circuit board market.
- Implementing engineer training programs with local companies to support local industries.
- Patents for high-precision inspection equipment influencing industry standardization.
Future Outlook
Growth Drivers
- Increased demand for high-performance boards due to advanced multifunctionality of electronic devices
- Expanded sales opportunities from growth of electronics industry in Asia
- Increased demand for inspection technology with expansion of IoT and AI devices
- Rising importance of high-quality manufacturing technology due to stricter environmental regulations
- Growing needs for short-lead-time, multi-variety compatible manufacturing
- Promotion of efficiency improvement investments through manufacturing automation and standardization
- Demand capture through global supply chain reorganization
- Advancement of competitive differentiation through high-value-added product development
- Improved brand trust through strengthened community collaboration
- Maintaining competitiveness through ongoing technology development and talent cultivation
- Ensuring production flexibility through collaboration with overseas bases
- Expansion of customized products in response to customer requests
Strategic Goals
- Achieve sales of ¥5 billion
- Realize overseas sales ratio of 30% or more
- Complete development and market launch of AI-equipped inspection equipment
- Decarbonize manufacturing processes through reduced environmental impact
- Expand regionally rooted high-value-added products
- 100% implementation of employee technical skills improvement programs
- Promote digitalization of supply chain
- Acquire 10 or more new customers
- Achieve sustainable material utilization rate of 50% or more
- Expand market share in Asia leveraging subsidiaries
Business Segments
Parts Supply for Electronic Equipment Manufacturers
- Overview
- Provides high-quality board parts and inspection equipment to electronic device manufacturers, supporting production efficiency and quality improvement.
- Competitiveness
- Short-lead-time delivery system for multi-variety small lots and high-precision inspection technology
- Customers
-
- Smartphone manufacturers
- Precision equipment manufacturers
- Automotive parts manufacturers
- Medical equipment manufacturers
- Industrial equipment manufacturers
- Home appliance manufacturers
- Telecommunications equipment manufacturers
- Semiconductor manufacturing equipment manufacturers
- Aerospace equipment manufacturers
- Robot manufacturers
- Electronics manufacturing services providers
- Electronic components trading companies
- Products
-
- Flexible printed circuit boards
- Board inspection equipment
- High-durability electronic components
- Custom processed boards
- Inspection system software
- Optical inspection modules
- Fine circuit processed parts
- Plating processing services
- Assembly parts
- Quality inspection tools
Overseas Manufacturing Site Support Services
- Overview
- Provides products and technical support tailored to local needs at major Asian bases.
- Competitiveness
- Rapid response leveraging extensive local know-how and subsidiary network
- Customers
-
- Southeast Asian electronic parts manufacturers
- Chinese electronic manufacturers
- Asian regional agents
- Overseas technical partners
- Products
-
- Printed circuit boards for local production
- Local sales of quality inspection equipment
- Production line support
- Technical training support
Quality Control Equipment Sales for Manufacturing
- Overview
- Provides inspection equipment aimed at reducing defects and improving quality at manufacturing sites.
- Competitiveness
- Advanced inspection technology and customization capabilities
- Customers
-
- Printed circuit board manufacturers
- Semiconductor manufacturers
- Electronic component manufacturers
- Inspection service companies
- Manufacturing equipment sellers
- Products
-
- Automatic visual inspection systems
- Manual inspection systems
- AI image analysis systems
- Inspection equipment maintenance services
Board Processing Outsourcing Services
- Overview
- Supports customers' design and development through board processing outsourcing with a flexible production line.
- Competitiveness
- High-precision processing technology and multi-variety small-lot capabilities
- Customers
-
- Printed circuit board design firms
- Electronic device prototype developers
- Mass production manufacturers
- Technical research institutions
- Products
-
- Engraving processing
- Plating processing
- Prototype board manufacturing
- Short-lead-time order fulfillment
Electronic Components and Consumables Sales
- Overview
- Provides a wide range of high-quality parts and consumables for manufacturing sites.
- Competitiveness
- Specialized product selection and stable supply system
- Customers
-
- Electronic components trading companies
- Manufacturing equipment maintenance companies
- Repair companies
- Electronic device assembly companies
- Products
-
- Special terminals
- Electronic connection parts
- Inspection machine consumables
- Related accessories
Competitive Advantage
Strengths
- Flexible production system for multi-variety small lots
- Technological strength in high-precision board inspection equipment
- Domestic and international bases and subsidiary network
- Comprehensive support from design to inspection
- Solid management foundation and stable net assets
- Product competitiveness through advanced processing technology
- Short lead times and rapid response to customer needs
- Reliability from long industry experience
- Diverse product lineup
- Specialized expertise and accumulated know-how of engineers
- Regionally rooted management style
- Robust quality control system
- Business expansion leveraging subsidiaries
- Long-term trust relationships with customers
- Stable capital and sound finances
Competitive Advantages
- High-quality product provision based on advanced flexible printed circuit board design technology
- Achieving both inspection efficiency and accuracy with proprietary board inspection equipment
- Strengthened market access through subsidiary expansion in Asia
- Flexible multi-variety small-lot production to accommodate diverse customers
- Customer competitiveness support through short lead times
- One-stop service from comprehensive product development to inspection
- Establishment of high-performance, user-friendly inspection equipment brand
- Solid management and regional support based in Wakayama Prefecture
- Product evolution through steady technology investments
- Customer-focused customization capabilities
- R&D investment backed by stable financial strength
- Credibility gained from industry technology awards
- Increased added value through diverse related product offerings
- Cost competitiveness via global production network utilization
- Technology succession and innovation promotion through focus on talent development
Threats
- Intense international competition in semiconductors and electronic components market
- Cost increase risks from raw material price fluctuations
- Intensified price competition from new entrants
- Price strategy pressure from China and other Asian players
- Global supply chain instability
- Risk of failing to keep up with technological innovations
- Profit impacts from exchange rate fluctuations
- Manufacturing cost increases from stricter environmental regulations
- Patent infringement and intellectual property risks
- Demand decline from changes in customer purchasing trends
- Social risks such as new infectious diseases
- Increased investment burden from equipment aging
Innovations
2023: Brand Strengthening through Name Change
- Overview
- Changed company name from Taiyo Kogyo to Taiyo Xelcom to refresh corporate image.
- Impact
- Promotes improved market recognition and brand strength.
2022: Improvement of A300 Series Automatic Visual Inspection System
- Overview
- Achieved improved inspection accuracy and speed through AI application in image processing software.
- Impact
- Contributes to lower defect rates and higher production efficiency for customers.
2021: Introduction of New Manufacturing Method for Multilayer Flexible Boards
- Overview
- Developed new manufacturing technology that balances high durability and miniaturization.
- Impact
- Successfully differentiated from competitors.
2020: Expansion of Overseas Production Bases
- Overview
- Strengthened production system utilizing consolidated subsidiaries in Thailand and China.
- Impact
- Achieved cost reductions and rapid response to market demand.
Sustainability
- Implementation of waste reduction programs at manufacturing sites
- CO2 emissions reduction through energy efficiency improvements
- Environmental conservation activities in collaboration with local communities
- Enhanced employee safety and health management
- Promotion of sustainable material use
- Support for environmental education in Wakayama Prefecture
- Supply chain environmental impact assessments
- Consideration of renewable energy introduction
- Establishment of product recycling systems
- Participation in local volunteer activities
- Compliance with environmental laws and regulations and information disclosure
- Implementation of in-house environmental awareness education