SMK

Basic Information

Stock Code
6798
Industry
Electrical Equipment
Category Detail
Semiconductors & Electronic Components
Prefecture
Tokyo
Establishment Year
January 1929
Listing Year
September 1962
Official Website
https://www.smk.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Shinden Hi-Tech, Kato Seisakusho, IDEC, Alps Alpine, Suzuki, Hosiden, Hirose Electric, Japan Aviation Electronics, Seiko Giken, Irizo Electronics, Kel, Yamaichi Electronics, Misniden

Overview

SMK is an electrical equipment manufacturer founded in 1929, with strengths in manufacturing components such as connectors and switches, and is a leading company expanding its business both domestically and internationally.

Current Situation

SMK recorded consolidated sales of approximately 54.1 billion yen in the fiscal year ended March 2020, leading the domestic and international markets in its core connector and switch sectors. It has production bases overseas in China and Malaysia, accelerating its global expansion. In recent years, it has reorganized its business divisions, focusing on efficiency improvements and product line expansion. It is actively developing new products such as medicine boxes for the elderly and dementia detection devices, aiming to enhance competitiveness through technological innovation. As of March 2020, it maintains a stable organizational structure with net assets of approximately 24.6 billion yen and around 5,593 employees. Compared to competitors in the industry, its strengths lie in a wide product lineup and overseas production system. Moving forward, it plans to strengthen investments in IoT applications such as remote inspection services, aiming for sustainable growth and market expansion.

Trivia

Interesting Facts

  • Founded in 1929, with over 90 years of history.
  • Changed name from Showa Musen Kogyo in 1985.
  • Operates numerous overseas factories in China, Malaysia, and elsewhere.
  • Established Showa Ikeda Memorial Foundation to support youth education.
  • Focusing on developing medical devices for the elderly.
  • Listed on the Tokyo Stock Exchange since 1962.
  • Promoting market development for industrial equipment with IoT-compatible products.
  • Highly regarded for compact connectors using proprietary technology.
  • Expanding into new businesses in response to demographic changes.
  • Long-term stable parent company shareholder association as major shareholder.
  • Gains trust in the industry for high quality and on-time delivery.
  • Nippon Life and Mizuho Bank listed as major shareholders.
  • Member of Japan Electronics and Information Technology Industries Association, contributing to standardization.
  • Product lineup spans telecommunications, automotive, medical, and more.
  • Actively engages in corporate social responsibility activities.

Hidden Connections

  • Contributes to the education sector through the Showa Ikeda Memorial Foundation related to the founding family.
  • Stable management achieved with financial institutions and major printing companies as major shareholders.
  • Overseas factories dispersed in China, Southeast Asia, and North America for risk diversification.
  • IoT product development involves multiple industry-academia collaboration projects.
  • Remote inspection technology influences maintenance efficiency in Japan's power industry.
  • Major competitors include domestic giants like Hirose Electric and Alps Alpine.
  • Broad customer base and industry diversification as key to management stability.
  • Wide-ranging products from home appliances to industrial equipment lead to diverse customer base.

Future Outlook

Growth Drivers

  • Expansion of global IoT market and development of compatible products
  • Progress in electrification and electronification of automotive industry
  • Increasing demand for medical and caregiving products amid aging society
  • Improved cost competitiveness through strengthened overseas production capacity
  • Expansion of parts supply to AI and robotics fields
  • Increasing demand for energy-saving products due to stricter environmental regulations
  • Spread of remote monitoring systems for industrial equipment
  • Rising demand for communication modules related to 5G rollout
  • Shift to sustainability-compliant products
  • Product differentiation through technological innovation and new materials
  • Smart factory transformation pursuing production efficiency
  • Acceleration of new technology creation through industry-academia collaboration

Strategic Goals

  • Achieve 70% overseas sales ratio
  • 50% increase in IoT and smart device parts sales
  • Full entry into new medical and caregiving product fields
  • Realize sustainable manufacturing processes
  • Shorten product development period by 30% using digital technologies
  • Foster employee diversity and comfortable work environment
  • Achieve thorough global quality standards
  • Pursue profitability improvement in core businesses alongside new business creation
  • Fully achieve environmental load reduction
  • Secure top domestic market share in industrial remote maintenance field

Business Segments

Electronic Components Manufacturing

Overview
Supplies high-performance electronic components to major electronics manufacturers.
Competitiveness
Diverse product lineup and global production system
Customers
  • Electronics manufacturers
  • Automotive manufacturers
  • Industrial machinery manufacturers
  • Medical equipment manufacturers
  • Telecommunications equipment manufacturers
  • Home appliance manufacturers
  • Aerospace industry
Products
  • Connectors
  • Switches
  • Relays
  • Terminals
  • RF units
  • Communication modules
  • Camera modules

Automotive Parts Supply

Overview
Provides high reliability and quality in automotive electrical components.
Competitiveness
Superior environmentally resistant product design
Customers
  • Automotive manufacturers
  • Suppliers
  • Electrical component manufacturers
Products
  • Automotive connectors
  • Sensor components
  • Switches
  • Camera modules

Industrial Equipment Parts

Overview
Provides parts and control equipment for industrial machinery and power infrastructure.
Competitiveness
Introduction of remote maintenance support systems
Customers
  • FA equipment manufacturers
  • Control panel manufacturers
  • Power infrastructure operators
Products
  • Control panels
  • Power components
  • Switches
  • Terminals

Consumer Appliance Parts

Overview
Provides user-friendly and durable parts for consumer electronics.
Competitiveness
Product development focused on usability
Customers
  • Home appliance manufacturers
  • Telecommunications equipment manufacturers
Products
  • Remote controls
  • Connectors
  • Switches

Telecommunications Infrastructure Parts

Overview
Globally supplies high-quality parts for telecommunications infrastructure.
Competitiveness
High-speed communication compatible technology
Customers
  • Telecom operators
  • Telecommunications equipment manufacturers
Products
  • Communication modules
  • RF units
  • Connectors

Medical Equipment Parts

Overview
Manufactures highly reliable parts required in medical settings.
Competitiveness
Strict quality control system
Customers
  • Medical equipment manufacturers
  • Healthcare equipment manufacturers
Products
  • Sensor components
  • Connectors
  • Camera modules

IoT and Smart Devices

Overview
Develops and provides advanced parts compatible with IoT.
Competitiveness
Adoption of innovative communication technologies
Customers
  • IoT equipment manufacturers
  • Smart home appliance manufacturers
Products
  • Communication modules
  • Sensors
  • Touch panels

Aerospace and Defense Parts

Overview
Supplies durable parts that operate in extreme environments.
Competitiveness
Accumulated special materials and manufacturing technologies
Customers
  • Aircraft manufacturers
  • Defense-related companies
Products
  • Environmentally resistant connectors
  • High-reliability switches

Prototype and Development Parts

Overview
Provides parts that meet diverse research and development needs.
Competitiveness
Flexible responsiveness and technical support
Customers
  • Research institutions
  • University labs
  • New business development departments
Products
  • Custom connectors
  • Prototype switches

Environment and Energy-Related Parts

Overview
Provides parts and systems for the renewable energy sector.
Competitiveness
Introduction of energy-saving technologies
Customers
  • Solar power operators
  • Energy management system manufacturers
Products
  • Power components
  • Connection equipment

Disaster Prevention and Security Parts

Overview
Highly reliable parts required for disaster prevention and safety equipment.
Competitiveness
Rugged design and high-quality management
Customers
  • Disaster prevention equipment manufacturers
  • Surveillance system manufacturers
Products
  • Sensors
  • Connectors

Logistics and Transport Equipment Parts

Overview
Electronic components supporting the efficiency of logistics equipment.
Competitiveness
Product lineup responsive to industry needs
Customers
  • Logistics equipment manufacturers
  • Transport system designers
Products
  • Various switches
  • Control panels

Competitive Advantage

Strengths

  • High-precision connector manufacturing technology
  • Wide product lineup
  • Multiple production bases overseas
  • Long history and trusted brand
  • Advanced custom design capabilities
  • Global sales and service network
  • Product lineup with superior quality and reliability
  • Stable financial base
  • Excellent R&D capabilities
  • Adaptability to diverse industries
  • Flexible customer responsiveness
  • Robust supply chain system
  • Sustainable manufacturing processes
  • Advanced technology for industrial equipment
  • Skilled engineers and talent development

Competitive Advantages

  • Global production and sales network as the source of competitiveness
  • Technological capability to mass-produce compact, high-precision products in variety
  • Early entry into advanced technology fields such as IoT and remote maintenance
  • Ability to create new markets with products like medical devices for the elderly
  • Quality management system compliant with global standards
  • Stable revenue sources through long-term customer relationships
  • Product development incorporating environmentally friendly technologies
  • Trust earned from extensive customer track record across industries
  • Prompt technical support and after-sales service
  • Flexibility to meet customer requirements of various scales
  • Strong product planning for embedded markets
  • Superior cost-performance compared to competitors
  • Talent development and industry-academia collaboration using in-house foundation
  • Promotion of management efficiency through business reorganization
  • Proactive investment in new technologies

Threats

  • Delays in responding to increasingly sophisticated customer needs
  • Intensifying price competition from new entrants
  • Production risks due to semiconductor shortages
  • Profit pressure from exchange rate fluctuations
  • Political risks at overseas bases
  • Rising raw material prices
  • Competition in technological innovation from rivals
  • Increasing global trade barriers
  • Cost increases from stricter environmental regulations
  • Intensifying competition for talent
  • Growth slowdown due to market maturity
  • Security risks associated with digitalization

Innovations

2023: Introduction of Remote Inspection System

Overview
Developed a system for efficient remote inspection and maintenance for power infrastructure.
Impact
Reduced maintenance time by 30% and improved safety.

2022: Light and Sound Medication-Prompting Medicine Box for the Elderly

Overview
Developed a smart medicine box for the elderly that prompts medication with light and sound.
Impact
Contributes to reducing caregiving burden and improving medication adherence.

2024: Development of Dementia Precursor Detection Device

Overview
Commercialized new technology that detects dementia precursors in 40 seconds.
Impact
Enables early diagnosis and supports burden reduction in medical settings.

2021: Reorganization of SCI Business Division

Overview
Integrated FC and TP divisions into SCI division for more efficient operations.
Impact
Contributes to operational efficiency and strengthened business capabilities.

2020: Development of IoT-Enabled Industrial Switches

Overview
Developed highly durable IoT-compatible switches and launched them in the industrial equipment market.
Impact
Established competitive advantage in the market.

Sustainability

  • Promoting environmental load reduction measures at overseas production
  • Establishing resource recycling activities
  • Introducing energy-saving manufacturing equipment
  • Strengthening CSR through collaboration with local communities
  • Compliance with sustainable material procurement standards
  • Enhancing employee diversity and health promotion
  • Continuous improvement of environmental management systems
  • Thorough safety and health management system
  • Environmental audits of supply chain
  • Ongoing support for social welfare organizations
  • Improving product environmental compatibility through new materials
  • Resource-saving initiatives using digitalization