Aoi Electronics

Basic Information

Stock Code
6832
Industry
Electrical Equipment
Category Detail
Semiconductors & Electronic Components
Prefecture
Kagawa Prefecture
Establishment Year
February 1969
Listing Year
August 2000
Official Website
http://www.aoi-electronics.co.jp/
TSE Information
TSE Information
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Other Companies
Kioxia Holdings, Soketts, Digital Media Professionals, Socionext, Sanken Electric, Renesas Electronics, Axel, Zain Electronics, Shindengen Electric Manufacturing, MegaChips, Iriso Electronics, Rohm

Overview

Aoi Electronics is an electronic components manufacturer established in 1969, with strengths in semiconductor back-end processes, and is an independent IC manufacturer specializing in domestic production.

Current Situation

Aoi Electronics had consolidated net assets of approximately 48 billion yen and total assets of 57.7 billion yen in fiscal 2020, maintaining a solid financial foundation. Its main businesses are semiconductor back-end processes and electronic component manufacturing, with strengths in products for mobile phones. Specializing in domestic production, it provides high-quality products and has maintained a stable business base even after becoming independent from Rohm. Technologically, it possesses proprietary technologies in thermal printheads and resistor manufacturing, succeeding in differentiation even after patent disputes. In recent years, it has pursued acquisitions of subsidiaries and business diversification. In terms of sustainability, it focuses on community contributions and has established a public interest foundation. Aiming for the top 10 in the world in semiconductor back-end processes by 2030, it is advancing strategies to meet domestic and international needs. Moving forward, it prioritizes developing high-function electronic components for the IoT and 5G era and improving production efficiency.

Trivia

Interesting Facts

  • Historic electronic components manufacturer headquartered in Takamatsu City, Kagawa Prefecture.
  • Established proprietary technology in the thermal printhead field.
  • Established the Onishi-Aoi Memorial Foundation, a public interest foundation, focusing on regional support.
  • Expanded business after becoming a subsidiary of Renesas High Components.
  • Possesses top-class technology in Japan for semiconductor back-end processes for mobile phones.
  • Maintained competitive superiority even after dissolving capital alliance with Rohm.
  • Contributes to the regional economy as a mid-sized company with around 2,300 employees.
  • Experienced a stock par value change merger in 1985.
  • Manufactures resistors and boards used in many electronic products.
  • Operates multiple factories in Kagawa Prefecture, supporting local employment.
  • Listed on the Tokyo Stock Exchange Standard Market with a stable shareholder base.
  • Develops electronic materials and electronic circuit boards in-house.
  • Holds numerous patents, maintaining technological competitiveness.
  • Takamatsu City factory functions as a regional industrial hub.
  • Semiconductor back-end process factory has top-class production capacity in Japan.

Hidden Connections

  • Deep historical ties with Renesas Electronics through capital alliances and subsidiary relationships.
  • Strengthening local talent development and industry-academia collaboration through the public interest foundation.
  • Parts supply and joint development relationships with multiple companies in Kagawa Prefecture.
  • Sustains business through long-term partnerships with mobile phone manufacturers.
  • Originally started as Wakō Kōgyō Co., Ltd., handling automotive repairs.
  • Competes with Rohm in technology and fields while pursuing its own path.
  • Foundation scholarships have no employment obligation, contributing to talent development.
  • Owns multiple factories in Kagawa Prefecture, serving as key local employment hubs.

Future Outlook

Growth Drivers

  • Rapid expansion of 5G and IoT demand driving parts demand
  • Growing emphasis on high quality through domestic production specialization
  • Needs for electrification and advancement of automotive-related electronic components
  • Demand for dedicated modules accompanying high-speed communication equipment
  • Focus on sustainable technologies and environmentally friendly products
  • Expansion of domestic and international customers for high-precision semiconductor back-end processes
  • Production efficiency improvements through AI and automation technologies
  • Management system emphasizing coexistence with local communities
  • New material development in the electronic materials field
  • Demand for highly reliable electronic components in medical equipment
  • Growth in markets for environmentally regulated compliant products
  • Quality and efficiency improvements through DX in manufacturing

Strategic Goals

  • Establish position as top 10 worldwide in semiconductor back-end processes
  • Maintain domestic production ratio over 90%
  • Expand sales to more than double current levels
  • Gain industry leadership in environmental impact reduction
  • Expand talent development programs through public interest foundation
  • Introduce smart factories with DX across all factories
  • Achieve over 50% self-owned patent ratio for major products
  • Strengthen long-term partnerships with global customers
  • Expand product lines through new business development and M&A
  • Enhance brand value through co-creation with local communities

Business Segments

Semiconductor Back-End Process Services

Overview
Provides high-quality, domestically produced back-end process services, earning customer trust.
Competitiveness
Domestic production system and high-quality inspection technology
Customers
  • Mobile phone manufacturers
  • Electronic equipment manufacturers
  • Industrial product manufacturers
  • Communication equipment manufacturers
Products
  • Semiconductor assembly
  • Inspection services
  • Packaging modules
  • Quality assurance services

Electronic Component Manufacturing

Overview
Manufactures and supplies highly safe and reliable electronic components for multiple fields.
Competitiveness
High-precision manufacturing technology based on years of experience
Customers
  • Automotive parts manufacturers
  • Industrial machinery manufacturers
  • Medical equipment manufacturers
  • Home appliance manufacturers
Products
  • Resistors
  • Thermal printheads
  • Electronic boards and modules
  • Magnetic devices

Parts Supply for Communication Equipment

Overview
Manufactures and provides high-performance parts compatible with the latest communication standards.
Competitiveness
Rapid customization response for products
Customers
  • Communication equipment manufacturers
  • Network infrastructure providers
Products
  • Boards
  • RF modules
  • Electronic design services

Automotive Electronic Components

Overview
Offers automotive parts requiring high durability and reliability.
Competitiveness
Manufacturing processes meeting strict quality standards
Customers
  • Automakers
  • Suppliers
Products
  • Automotive resistors
  • Power modules

Medical Device Parts Manufacturing

Overview
Provides electronic components meeting the high demands of the medical field.
Competitiveness
High-precision control technology and rigorous quality management
Customers
  • Medical equipment manufacturers
  • Research institutions
Products
  • High-precision electronic components
  • Sensor products

Electronic Components for Industrial Equipment

Overview
Supplies highly reliable components to diverse industrial fields.
Competitiveness
Flexible production lines for custom orders
Customers
  • Industrial machinery manufacturers
  • Control equipment manufacturers
Products
  • Resistors
  • Magnetic devices
  • Power modules

Electronic Materials Supply

Overview
Provides high-quality electronic materials for stable supply.
Competitiveness
High-performance materials developed in-house
Customers
  • Electronic component manufacturers
  • Contract manufacturers
Products
  • Insulating substrate materials
  • Semiconductor package materials

Design and Development Support Services

Overview
Total support from design to prototyping.
Competitiveness
Rapid technical support and extensive know-how
Customers
  • Small and medium-sized electronic equipment developers
  • OEM companies
Products
  • Circuit design
  • Prototyping services

Electronic Equipment Assembly Services

Overview
Assembly services compatible with high quality and mass production.
Competitiveness
Efficient production management system
Customers
  • Electronic equipment manufacturers
  • OEM companies
Products
  • Board mounting
  • Product assembly

Board Manufacturing and Inspection

Overview
Provides high-precision board manufacturing and inspection technology.
Competitiveness
Technological capability for small-lot, multi-variety production
Customers
  • Electronic circuit board manufacturers
  • Electronics companies
Products
  • Printed circuit board manufacturing
  • Board inspection

IoT Module Production

Overview
Develops and produces high-efficiency modules for IoT-compatible devices.
Competitiveness
High-integration circuit design and production capabilities
Customers
  • IoT device manufacturers
  • Smart device manufacturers
Products
  • Wireless modules
  • Sensor modules

Electronic Components for Environmental Equipment

Overview
Provides high-performance electronic components for environmental measurement equipment.
Competitiveness
Component development for high-precision measurement
Customers
  • Environmental measurement instrument manufacturers
Products
  • Sensors
  • Control electronic components

Competitive Advantage

Strengths

  • High-quality semiconductor back-end process technology for mobile phones
  • Stable supply system specialized in domestic production
  • Precision electronic component manufacturing technology based on years of experience
  • Proprietary thermal printhead technology
  • Strong local base and support in Kagawa Prefecture
  • Production flexibility for multi-variety, small-lot production
  • Competitive edge through in-house technology and patents
  • Business diversification through strengthened subsidiary integration

Competitive Advantages

  • High quality control and reliability from fully domestic production
  • Long-term customer relationships in the mobile phone sector
  • Technology and product differentiation after patent disputes
  • Rapid responsiveness from regionally rooted management
  • Business expansion into diverse electronic component fields
  • Advanced technological development and ongoing innovation
  • Enhanced social trust through establishment of public interest foundation
  • Agility and close customer service unique to SMEs

Threats

  • Profit pressure from rising domestic manufacturing costs
  • Intensifying global competition and price wars
  • Narrowing technology gap with overseas production companies
  • Order instability due to fluctuations in semiconductor demand
  • Increased compliance costs from stricter environmental regulations
  • International risks in material procurement
  • Risk of obsolescence of existing products due to new technologies
  • Market share loss to technological innovations by emerging companies

Innovations

2023: Introduction of Automation in Semiconductor Back-End Processes

Overview
Introduced line automation equipment to improve production efficiency.
Impact
25% productivity improvement and quality stabilization

2022: Development of New Thermal Printheads

Overview
Launched products that achieve both improved resolution and enhanced durability.
Impact
Improved market competitiveness and successful patent acquisition

2021: Strengthened Integration of Subsidiary High Components Aomori

Overview
Business expansion through absorption of Renesas-affiliated subsidiary.
Impact
15% increase in production capacity and expanded customer base

2024: Expanded Adoption of Environmentally Friendly Materials

Overview
Promoting reduction of environmental impact in electronic materials.
Impact
Improved environmental suitability evaluation of products

2023: Development of 5G-Compatible Communication Modules

Overview
Newly developed modules for high-speed communication in IoT.
Impact
Expected increase in orders in new markets

2020: Introduction of AI Quality Inspection System

Overview
Implemented automation of product inspection using AI.
Impact
Improved defect detection rate and shortened inspection time

2021: Establishment of Next-Generation Thin-Film Resistor Technology

Overview
Developed resistors with high-temperature and high-durability performance.
Impact
Acquired new customers and expanded market share

2022: Enhanced Development of IoT Sensors

Overview
Developed multifunctional temperature and motion detection sensors.
Impact
Expanded product lineup

2024: Introduction of Low-Environmental-Impact Production Technology

Overview
Achieved energy savings and waste reduction in production processes.
Impact
20% reduction in CO2 emissions and cost reduction

Sustainability

  • Local education support activities through public interest foundation
  • Promotion of energy-saving measures at factories
  • Product adaptations to reduce environmental impact
  • Improved waste recycling rate
  • Enhanced workplace safety
  • Strengthened collaboration with local communities
  • Thorough sustainable procurement
  • ESG awareness education for employees
  • Setting and progress management of CO2 emission reduction targets
  • Promotion of electronic equipment waste recycling
  • Water resource conservation initiatives
  • Promotion of sustainable technology development