Hokuriku Electric Industry

Basic Information

Stock Code: 6989
Industry: Electric Equipment
Category Detail: Semiconductors & Electronic Components
Prefecture: Toyama Prefecture
Establishment Year: April 1943
Listing Year: August 1962
Official Website: https://www.hdk.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Uekigi, Sanyo Kogyo, Koshu Industries, Shirai Electronics, TDK, Tamura Corporation, Sumida Corporation, Mitsui High-Tec, Taiyo Yuden, Murata Manufacturing, Nichicon, Nippon Chemi-Con, KOA

Overview

Hokuriku Electric Industry is an electric equipment manufacturer founded in 1943, a venerable company with advanced technological capabilities centered on electronic component manufacturing and widely deployed both domestically and internationally.

Current Situation

Hokuriku Electric Industry has a stable business foundation with consolidated sales of approximately 40.8 billion yen and ordinary income of approximately 3.1 billion yen for the fiscal year ending March 2024. Its mainstay is the manufacture of electronic components such as resistors, sensors, and electronic circuit boards, and it is actively involved in semiconductor package-related businesses. It has production bases overseas, particularly strengthening production and sales in Asia including Thailand and Malaysia. In technology development, it focuses on improving the quality of precision electronic components and contributes to industry standards as a JEITA member. In recent years, it has been working on ESG initiatives and measures to reduce environmental impact, promoting the development of energy-saving products and improvements in production processes. In the future, it aims for medium- to long-term growth by continuing to expand its share in the global market and technological innovation.

Trivia

Interesting Facts

Traditional Japanese electronic component manufacturer founded in 1943
Shifting some resistor production overseas to enhance cost competitiveness
Regional global company headquartered in Toyama Prefecture
Contributes to industry standardization as a JEITA member company
Operates multiple manufacturing subsidiaries in Thailand and Malaysia
Maintains stable financial foundation over the long term
Diverse product range from electronic passive components to printed circuit boards
Diversified business structure including piezoelectric components and lead frames
Advancing smart factory initiatives using latest IoT technology
Actively engaged in developing environmentally adapted components
Mid-sized company with approximately 1,900 consolidated employees
Focuses on collaboration with local companies and educational support
Belongs to Nikkei 225 semiconductors and electronic components sector
Major customers diverse, including automotive, home appliances, and industrial equipment manufacturers
High technical evaluation for manufacturing high-precision components

Hidden Connections

Ferrotec Holdings is one of the major shareholders with deep technical collaboration
Forms electronic component supply network in ASEAN region through related companies
Contributes to regional economy through collaboration with local financial institution Hokuriku Bank
Competes in the market with domestic giants like Murata Manufacturing and TDK
Possesses unique technology in high-value-added semiconductor package field
Participates in standardizing electronic information technology as a JEITA member company
Multiple related companies in Thailand serve as core production and sales bases
Consolidated subsidiaries cover a wide range of product development and production fields

Future Outlook

Growth Drivers

Increasing demand for higher functionality in semiconductors and electronic components
Expansion of overseas markets centered on Asian emerging countries
Growing demand for sensors in IoT and automotive electronics
Attention to energy-saving and environmentally adapted products
Advancement of semiconductor package technology
Efficiency improvements through smart manufacturing processes
Strengthening global production using related subsidiaries
Active response to corporate ESG evaluation improvements
Rapid responsiveness to customer custom needs
Increasing demand for electronic components in 5G and next-generation communication devices
Promotion of electrification in industrial machinery and medical equipment fields
Advancement of product lifecycle management

Strategic Goals

Expand overseas sales ratio to over 60%
Make environmentally regulation-compliant product lineup 70% of total
Full introduction of smart factories and 30% productivity improvement
Increase R&D investment to 7% of annual sales
Enter top 10% in ESG evaluations
Launch 5 or more new high-function electronic components annually
Strengthen synergy creation among related subsidiaries
Promote automation of quality management using digital technology
Build global customer support system
Expand employee skill-up training system

Business Segments

Electronic Component Manufacturing and Supply

Overview

Manufactures and supplies a wide variety of electronic components, contributing broadly to manufacturing industries in other sectors.

Competitiveness

High technological capabilities and stable supply system through numerous related subsidiaries

Customers

Electronics manufacturers
Automotive industry
Industrial machinery manufacturers
Telecommunications equipment companies
Home appliance manufacturers
Medical equipment manufacturers
Aerospace related
Semiconductor equipment manufacturers
Measurement instrument manufacturers
Defense-related companies
Public research institutions
Energy related

Products

Resistors
Capacitors
Coils
Sensors
Electronic circuit boards
Semiconductor packages
Piezoelectric components
Lead frames
Ceramic packages
Printed wiring boards
Custom electronic components
High-performance electronic materials
Embedded modules
Environmentally adapted components
Compact electronic components

Overseas Production and Sales Support

Overview

Strengthens production and sales bases overseas, centered on Thailand and Malaysia, to support global expansion.

Competitiveness

International competitiveness through local production and sales know-how

Customers

Overseas electronics manufacturers
Local sales agents
Importers and exporters
Overseas factories
International logistics companies
Overseas market research companies
Local service providers
Overseas manufacturing partners
Global procurement departments
Local customers
Overseas electronics markets
Multinational corporations

Products

Electronic component product lines
Technical support
Local production management
Quality assurance services
Logistics support
Local procurement
Market analysis information
Customer service
After-sales service
Product improvement proposals
Cost management
Local response programs
Localization services
Technical training
Delivery solutions

Technology Development and Product Design Support

Overview

Provides technical support for customer product development, assisting in the design of high-performance, high-quality components.

Competitiveness

Reliable technical support based on long years of electronic component manufacturing experience

Customers

Electronics design companies
Manufacturing OEM companies
System integrators
Research and development institutions
Universities and research institutes
Advanced technology companies
New market entry companies
Specification design teams
Technical consulting companies
Suppliers
Quality control departments
Product development departments
Project managers
Technical sales
Customer support

Products

Product prototype creation
Circuit design support
Component evaluation and analysis
Engineering services
Proprietary technology development
Testing and evaluation equipment
Standards-compliant design
Mass production design support
Customized products
Technical documentation provision
Training services
Manufacturing process improvement
Quality assurance planning
Cost reduction proposals
Technical exchange programs

Environmentally Adapted Products and Sustainability Support

Overview

Provides environmentally adapted products and support contributing to a sustainable society.

Competitiveness

Environmental technology expertise and extensive experience in industry standard compliance

Customers

Companies complying with environmental regulations
Energy-saving equipment manufacturers
Recycling businesses
Environmental consulting companies
Municipalities
International environmental organizations
Manufacturing industry associations
Sustainability promotion companies
Eco-product development companies
Green procurement departments
Customer ESG representatives
Resource management teams
Consumer groups
Educational institutions
Environmental technology research institutes

Products

Energy-saving resistors
Low environmental impact sensors
Recyclable components
Harmless material components
Environmentally compatible substrates
Low VOC products
Eco-certified components
Environmentally considerate packaging
Low power consumption products
Environmental monitoring sensors
Resource-saving component design
Greenhouse gas reduction products
Sustainable manufacturing processes
Product life extension technology
Environmental education materials

Electronic Device Assembly and ODM Services

Overview

Provides comprehensive ODM services from electronic device assembly to design support.

Competitiveness

High-quality production system and customer support capabilities

Customers

Electronic component trading companies
OEM manufacturers
Emerging technology companies
Home appliance brands
Industrial equipment manufacturers
Communication equipment manufacturers
Medical equipment manufacturers
Inspection equipment manufacturers
IT equipment manufacturers
Automotive related companies
Aerospace related
Logistics equipment manufacturers
Contract manufacturers
Technology development companies
Service providers

Products

Electronic circuit assembly
Module design
LED controllers
Inspection equipment
Standard ODM products
Custom electronic devices
Prototyping services
Mass production services
Technical support
Quality management
Inspection systems
Production management
Logistics support
Delivery management
Technical training

Electronic Component Recycling and Repair Services

Overview

Performs electronic component repair and recycling services, contributing to reducing environmental impact.

Competitiveness

Extensive know-how in maintenance and environmentally considerate systems

Customers

Electronic equipment maintenance companies
Device refurbishers
Industrial machinery maintenance
Environmental recyclers
Major manufacturing companies
Service providers
Secondary markets
OEM related
Repair companies
Distributors
Research institutions
Universities
Government related organizations
International organizations
Local governments

Products

Component repair
Electronic component testing
Recycling material collection
Repair parts provision
Quality assurance services
Technical consulting
Failure analysis
Maintenance support
Process optimization
Related equipment maintenance
Repair technology training
Environmentally compliant collection
Reused parts provision
Waste management support
Recycling evaluation

Sensor System Development and Manufacturing

Overview

Develops sensor systems for diverse applications, promoting efficiency in industry and daily life.

Competitiveness

Customization capabilities based on high-performance products and development strength

Customers

Factory automation companies
Environmental monitoring operators
Medical equipment development companies
Mobility related
Home appliance manufacturers
IoT service companies
Smart city related
Security companies
Research institutions
Universities
Municipalities
System integrators
Telecommunications carriers
Manufacturing industry
Energy management companies

Products

Sensor integrated modules
Environmental sensor systems
Industrial detection systems
Medical sensor devices
Temperature and humidity monitoring
Motion detection sensors
Remote control devices
IoT connected sensors
Signal processing modules
Data collection equipment
Sensor software
Environmentally durable products
Custom sensor development
Product testing services
Mass production systems

Electronic Materials and Lead Frame Manufacturing

Overview

Manufactures high-quality electronic materials and lead frames, supporting the reliability of semiconductor products.

Competitiveness

High-precision manufacturing technology and industry network

Customers

Semiconductor manufacturers
Electronic component manufacturers
Automotive industry
Home appliance manufacturers
Communication equipment manufacturers
Medical equipment companies
Aerospace related
Energy related
Industrial machinery manufacturers
Research institutions
Universities
Advanced technology development companies
Logistics companies
Service providers
Environmental related businesses

Products

Lead frames
Ceramic packages
Electronic material substrates
High-purity metal materials
Semiconductor package materials
Heat-resistant materials
High-conductivity materials
Thin film materials
Molding materials
Environmentally compliant materials
Recycled materials
High-reliability materials
Special alloys
Conductive films
Electronic connection components

Circuit Board Design and Manufacturing Support Services

Overview

Provides total support from circuit board design to manufacturing, contributing to product quality improvement.

Competitiveness

Comprehensive technical services and long-term customer trust

Customers

Electronic design companies
Manufacturing OEM
New business development companies
System designers
Product design teams
Manufacturers
Research institutions
Universities
Quality assurance staff
Engineering companies
Technical consultants
Development partners
Mass production factories
Customer companies
Service providers

Products

Circuit board design tools
Prototype board manufacturing
Process improvement support
Product evaluation services
Quality assurance planning
Cost analysis services
Project management
Mass production support
Technical training
Material evaluation
Signal quality analysis
Manufacturing line construction
Customized design
Technical documentation
Customer support

Industrial Electronic Equipment Sales

Overview

Supports efficiency and safety improvements at production sites through sales of industrial electronic equipment.

Competitiveness

Wide product lineup and customer needs responsiveness

Customers

Factory equipment companies
Equipment maintenance providers
Automation system companies
Energy management companies
Infrastructure companies
Logistics equipment manufacturers
Manufacturing line operators
Maintenance companies
Engineering companies
Public institutions
Local governments
Research institutions
Manufacturing related
Trading companies
Service providers

Products

Industrial sensors
Motor controllers
Electronic measuring instruments
Surveillance camera systems
Control panels
Communication modules
Power supplies
Industrial PCs
Temperature control devices
Automation equipment
Safety devices
PLC systems
Displays
Analysis software
Maintenance supplies

Education and Technical Training Services

Overview

Leverages extensive knowledge in electronic technology to offer education and training services.

Competitiveness

Training system integrating practical know-how and cutting-edge technology

Customers

Corporate engineers
University researchers
Electronic component manufacturers
Industrial technicians
Vocational training institutions
New employee training
Research institutions
Educational institutions
Technology dissemination organizations
Local governments
Industry associations
Technical consultants
Manufacturing industry
Service industry
Public institutions

Products

Electronic component technology training
Circuit design seminars
Manufacturing technology guidance
Quality management courses
Environmental compliance education
IT technology training
Safety and health education
Skills certification support
Technical forums
Custom training programs
Online courses
Hands-on facility provision
Research support services
Teaching material development
Technical exchange events

Quality Assurance and Inspection Outsourcing Services

Overview

Implements high-precision quality assurance and inspection outsourcing services to improve reliability.

Competitiveness

Extensive inspection track record and certification know-how

Customers

Electronic equipment manufacturers
Component suppliers
Logistics providers
Inspection equipment manufacturers
Factory and line managers
Quality control departments
Research institutions
Universities
Consulting companies
Designers
Contract manufacturers
Regulatory agencies
Third-party inspection organizations
Procurement departments
International certification bodies

Products

Product inspection services
Component quality evaluation
Standards compliance verification
Failure analysis
Environmental testing
Life evaluation
Defect analysis
Quality data reporting
Third-party certification support
Inspection equipment rental
In-house quality education
Inspection process optimization
Electronic component testing
Inspection result audits
Regulatory compliance support

Competitive Advantage

Strengths

Accumulated expertise in electronic component manufacturing over many years
Diverse product lineup
Comprehensive production and sales bases domestically and internationally
High-quality management system
Strong customer base
Industry collaboration as a JEITA member
Flexible customization capabilities
Track record in environmentally adapted product development
Specialized technical support system
Stable financial foundation
Synergies with related subsidiaries
Responsiveness to diverse market needs
High product reliability
Continuous improvement in production efficiency
Strengthening expansion in overseas markets

Competitive Advantages

Product design technology combining durability and precision
Enhanced cost competitiveness through overseas production shift
Advanced sensor and electronic component development capabilities
Meeting diverse customer demands with a wide-ranging product lineup
Supply chain optimization through group of related companies
Material development and production processes compliant with environmental regulations
Broad sales network and local responsiveness
Technology information sharing and standardization promotion as JEITA member
Production flexibility from small to large lots
Superior manufacturing processes in quality and delivery management
Product improvement capabilities corresponding to higher performance of electronic devices
Optimal supply system combining domestic and overseas manufacturing
Customer-oriented technical support system
Broad applicability across multiple industries
Reliability based on long-term business relationships

Threats

Global instability in semiconductor component supply and demand
Accelerated technological innovation by competitors
Political and economic risks in overseas markets
Fluctuations in raw material prices
Cost increases due to strengthened environmental regulations and laws
Trend toward customer in-house production
Exchange rate fluctuation risks
Price competition from emerging country companies
Global logistics issues
Delays in responding to rapid technology trend changes
Decline in production efficiency due to labor shortages
Cybersecurity risks

Innovations

2023: Strengthening overseas production lines

Overview: Expanded production bases in Thailand and Malaysia to build an efficient manufacturing system.
Impact: Reduced production costs and improved market response speed

2022: Development of new high-precision sensor technology

Overview: Advanced infrared and temperature sensor technology to strengthen competitiveness in industrial applications.
Impact: Contributes to acquiring new customers and expanding market share

2021: Expansion of environmentally considerate product lineup

Overview: Developed and launched product lines using low power consumption components and recycled materials.
Impact: Improved ESG evaluation and opened new markets

2024: Promotion of smart factory transformation

Overview: Revolutionized manufacturing efficiency and quality management using IoT and big data analysis.
Impact: 20% productivity improvement, enhanced quality traceability

2020: Development of thin-film technology for electronic circuit boards

Overview: Established thin and high-density mounting technology for multilayer boards, developing products for smart devices.
Impact: Improved competitiveness in high-function product markets

Sustainability

Reducing environmental impact in manufacturing processes
Promoting product development with energy-saving designs
Reducing waste and promoting recycling
Building and operating environmental management systems
Strengthening coexistence with local communities and educational support
Employee environmental awareness programs
Maintaining and updating ISO14001 certification
Promoting sustainable resource procurement
Establishing green procurement standards
Measuring and reducing carbon footprint