Teikoku Tsushin Kogyo

Basic Information

Stock Code
6763
Industry
Electric Machinery
Category Detail
Semiconductors & Electronic Components
Prefecture
Kanagawa Prefecture
Establishment Year
August 1944
Listing Year
October 1961
Official Website
https://www.noble-j.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kyoritsu Joho Tsushin, Nasu Tekko, Kikukawa, Koshu Kogyo, TDK, Tamura Seisakusho, Sumida Corporation, Mitsui High-Tec, Taiyo Yuden, Murata Manufacturing, Nichicon, Nippon Chemi-Con, KOA

Overview

Teikoku Tsushin Kogyo is a mid-sized specialized manufacturer in the electric machinery industry founded in 1944, providing high-precision electronic components centered on variable resistors.

Current Situation

Teikoku Tsushin Kogyo recorded consolidated sales of approximately 12.5 billion yen in the fiscal year ended March 2020, maintaining stable performance. It primarily manufactures electronic components such as variable resistors, sensors, and switches, with strengths in parts supply for precision equipment like digital cameras. High product quality and reliability serve as differentiating factors from competitors. With bases including the Akaho Factory (Nagano Prefecture) and Osaka Sales Office, it has built a stable supply chain both domestically and internationally. In recent years, it has introduced new products like front operation blocks and is advancing technology development tailored to market needs. Financially, net assets stand at a solid approximately 21.2 billion yen, though net profit fluctuates, leading to a focus on ongoing profit improvement. While undertaking sustainability activities, it aims for technological innovation and customer base expansion as part of its growth strategy toward 2030. Despite fierce industry competition, it maintains its presence through proprietary technology and market-need-aligned product development. Going forward, expansion into new areas such as IoT-compatible products and power-saving technologies is anticipated.

Trivia

Interesting Facts

  • Teikoku Tsushin Kogyo was founded with investments from major electronics manufacturers such as Toshiba, NEC, and Nippon Musen.
  • Supplies parts to electronic devices worldwide under the NOBLE brand.
  • The Akaho Factory is located in the Akaho district of Komagane City, Nagano Prefecture, serving as a key production base.
  • Established veteran in Japan's electronic resistor market with high trust.
  • Listed on the Tokyo Stock Exchange Second Section in 1961, promoted to First Section in 1971.
  • Front operation block (ICB) products are widely adopted in the digital camera industry.
  • One of the few dedicated electronic components manufacturers continuing production in Japan for many years.
  • Achieves high-precision products through proprietary precision machining technology.
  • Major shareholders include Mizuho Bank and Japan Master Trust Custody Bank.
  • Offers a wide product range from low-price to high-value-added items.
  • Has a subsidiary in Taiwan and engages in overseas business expansion.
  • Pursuing expansion into new fields like automotive applications through ongoing technology development.
  • Expanding products into switches and connectors fields.
  • Also engaged in manufacturing semiconductor package-related products.
  • Audited by Deloitte Touche Tohmatsu LLC.

Hidden Connections

  • Rare dedicated parts manufacturer established through joint investment by multiple zaibatsu-affiliated companies in Japan's postwar electronics industry.
  • Deep historical capital ties with Mitsui zaibatsu-affiliated Toshiba and Nippon Musen.
  • Headquarters in Kawasaki City, Kanagawa Prefecture, serves as a key base in electronic components cluster area.
  • Strong industry trend insights through not only transactions but also information sharing with Nikkei-related companies.
  • Mizuho Bank and Japan Master Trust Custody Bank support stable management as shareholders.
  • Akaho Factory participates in Tokyo Electric Power's radiation monitoring network as a local collaborative company.
  • Front operation block technology indirectly influences operation system development for multifunction home appliances.
  • High-precision encoder technology is part of technical collaboration with domestic robot manufacturers.

Future Outlook

Growth Drivers

  • Expanding needs for high-value-added precision electronic components
  • Increasing demand for sensors in IoT and smart devices
  • Expansion of automotive parts market due to vehicle electrification
  • Growing demand for environmentally friendly and energy-saving technology products
  • Continued growth of precision equipment manufacturing domestically and internationally
  • Advanced component requirements accompanying evolution of digital cameras and imaging devices
  • Ongoing adoption of industrial robots and automation equipment
  • Increasing demand for reliable components in disaster countermeasures and medical devices
  • Expansion of electronic components demand in emerging markets
  • Accelerated development of high-function products through technological innovation
  • Expansion of new business areas through joint development with customers
  • Enhanced competitiveness via capital investment in domestic production bases

Strategic Goals

  • Expand market share and strengthen brand domestically and internationally
  • Increase sales ratio of high-value-added products to over 50%
  • Develop and expand sales of environmentally compatible products
  • Launch new products in IoT and smart device fields
  • Optimize and strengthen global production system
  • Maintain R&D investment at 7% of annual sales
  • Promote sustainable corporate operations and community contributions
  • Thorough business efficiency improvement through digitalization
  • Achieve employee skill enhancement and respect for diversity
  • Company-wide deployment of smart manufacturing systems

Business Segments

Precision Electronic Components Manufacturing

Overview
Develops and manufactures high-precision electronic components, supplying them to a wide range of industrial equipment.
Competitiveness
Stable supply of highly reliable products based on long-accumulated technology
Customers
  • Camera manufacturers
  • Communications equipment manufacturers
  • Measurement instrument manufacturers
  • Industrial machinery manufacturers
  • Automotive manufacturers
Products
  • Variable resistors
  • Resistance sensors
  • Encoders
  • Front operation blocks

Electronic Device Assembly Services

Overview
Provides assembly services combined with parts supply to meet diverse customer needs.
Competitiveness
Thorough quality control through integrated production system
Customers
  • Home appliance manufacturers
  • Medical equipment manufacturers
  • Automotive parts manufacturers
  • Industrial equipment manufacturers
Products
  • Assembly modules
  • Front operation parts assembly
  • Quality assurance services

R&D Support Services

Overview
Supports customers' technology R&D and contributes to new technology creation.
Competitiveness
High-quality support through dedicated research facilities and specialized engineers
Customers
  • Electronic components manufacturers
  • University research institutions
  • Industrial technology research institutes
Products
  • Prototype development
  • Technical consulting
  • Product evaluation services

Technical Support for Overseas Subsidiaries

Overview
Continuously supports enhancement of technical capabilities and market response at overseas bases.
Competitiveness
Strengthened collaboration through global technology management
Customers
  • Taiwan subsidiary
  • Asia market customers
Products
  • Technical training
  • Product improvement support
  • Market-adaptive technology development

Industrial Electronic Components Manufacturing

Overview
Provides highly environment-resistant electronic components for industrial use.
Competitiveness
Product design meeting strict environmental standards
Customers
  • Industrial machinery manufacturers
  • Machine tool manufacturers
Products
  • High-durability resistors
  • Special-purpose sensors
  • Encoders

Automotive Industry Electronic Components

Overview
Manufactures and supplies high-reliability components for automotive equipment.
Competitiveness
Capability to meet automotive quality standards
Customers
  • Automotive manufacturers
  • Automotive parts suppliers
Products
  • Automotive variable resistors
  • Automotive encoders
  • Sensors

Competitive Advantage

Strengths

  • High-precision variable resistor manufacturing technology
  • Long-cultivated quality management expertise
  • Production bases deployed domestically and internationally
  • Diverse electronic components lineup
  • Stable financial foundation
  • Market recognition of proprietary brand NOBLE
  • Strong customer base and long-term trading relationships
  • Proprietary development of front operation block products
  • Outstanding R&D system
  • Established quality assurance system
  • Flexible customization capabilities
  • Business foundation linked with major domestic electronics companies
  • High technical expertise of employees
  • Rapid market response capability
  • Ongoing capital investment in equipment

Competitive Advantages

  • High technological prowess and reliability in the precision electronic components market
  • Secured market share in specific precision variable resistor fields
  • Stable quality from domestic manufacturing distinguishes it from competitors
  • Flexible response to customer needs through diverse product range
  • Retains specialized product development strength as a dedicated manufacturer
  • Differentiation through proprietary related products like front operation blocks
  • Deep relationships and stable supply capacity with customers built over long periods
  • Efforts to add high value to products through technological innovation
  • Ensured product reliability via advanced quality management system
  • Early development of environmentally regulated compliant products
  • Swift decision-making as a mid-sized company
  • Efficient cost control through concentrated manufacturing bases
  • Stable management backed by strong financial foundation
  • Proprietary technology development by highly specialized engineers
  • Improved customer satisfaction through superior support system

Threats

  • Intense price competition with major electronic components manufacturers
  • Exchange rate fluctuation risks in global markets
  • Market shrinkage risk from alternative technology development for products
  • Cost increases due to intensified international environmental regulations
  • Rise of overseas manufacturers in China and Taiwan, etc.
  • Supply chain disruption risks (including COVID-19 impacts)
  • Impact on production bases from natural disasters
  • Technology succession issues due to labor shortages
  • Changes in product demand from rapid digitalization of electronic devices
  • Business risks from IT security threats
  • Cost pressures from soaring resource prices
  • Order fluctuations from sudden changes in customer needs

Innovations

2023: Development of High-Durability Variable Resistors

Overview
Developed new variable resistors with significantly improved durability for industrial machinery.
Impact
Enhanced market competitiveness, enabling acquisition of major new orders

2022: Enhanced Functionality of Front Operation Block (ICB) Products

Overview
Commercialized new ICB model with improved operability and durability for digital cameras.
Impact
Received high evaluation from major customers, contributing to sales growth

2021: Introduction of Low-Power Consumption Sensor Technology

Overview
Developed resistance sensors achieving power savings for IoT devices.
Impact
Successfully opened new markets and expanded product lineup

2024: Promotion of Efficiency through Production Automation

Overview
Introduced automation equipment in factories, improving production efficiency by 25%.
Impact
Contributed to production cost reduction and shorter delivery times

2020: Adoption of Environmentally Friendly Materials

Overview
Began using environmentally compatible materials in products to strengthen regulatory compliance.
Impact
Improved customer satisfaction through development of SDGs-compliant products

2023: Establishment of Mass Production System for High-Precision Encoders

Overview
Established mass production technology for high-resolution encoders for robots.
Impact
Contributed to acquiring new customers and increasing sales

2022: Introduction of Remote Quality Management System

Overview
Utilized IoT to enable real-time quality management, reducing defect rates.
Impact
Strengthened customer trust through quality improvements

2021: Acquisition of International Patents for Front Operation Blocks

Overview
Obtained patents in multiple countries for new front operation mechanisms.
Impact
Secured technological superiority for differentiation in international markets

2020: Enhanced Miniaturization Technology Development

Overview
Advanced miniaturization technology for electronic components, contributing to space-saving circuit boards.
Impact
Accelerated product expansion into new fields

2023: Introduction of Low-Environmental-Impact Manufacturing Processes

Overview
Introduced energy-saving and waste reduction technologies in factories to lower environmental load.
Impact
Contributed to environmental certification acquisition and improved image

Sustainability

  • Promotion of energy conservation in manufacturing processes
  • Reduction of hazardous substances and improvement of waste recycling rate
  • Active use of environmentally compatible materials
  • Cooperation with local communities on environmental protection activities
  • Environmental education and awareness enhancement for employees
  • Maintenance of ISO 14001 environmental management certification
  • Strengthening environmental measures across the entire supply chain
  • Promotion of sustainable product design
  • Setting and progress management of CO2 emission reduction targets
  • Introduction of green procurement policies
  • Promotion of product longevity and repair support
  • Cost reduction through improved energy efficiency