Nichicon

Basic Information

Stock Code
6996
Industry
Electric Equipment
Category Detail
Semiconductors & Electronic Components
Prefecture
Kyoto Prefecture
Establishment Year
August 1950
Listing Year
October 1961
Official Website
https://www.nichicon.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Teika, Kohoku Kogyo, TDK, Teikoku Tsushin Kogyo, Tamura, Sumida Corporation, Mitsui High-Tec, Taiyo Yuden, Murata Manufacturing, Nippon Chemi-Con, KOA

Overview

Nichicon is a leading company in the electric equipment industry founded in 1950, specializing in capacitors as its main product and boasting high technological prowess in the development and manufacturing of products for electronic devices.

Current Situation

Nichicon recorded consolidated net sales of approximately 119.7 billion yen and operating profit of approximately 2.5 billion yen for the fiscal year ended March 2020, maintaining a stable revenue base in the electric equipment sector. It holds a high market share in domestic aluminum electrolytic capacitors, its flagship product, while expanding its lineup of film capacitors and electric double-layer capacitors. The company has successfully diversified its products through the development of various hybrid ICs, positive temperature coefficient thermistors, and switching power supplies. With manufacturing bases and sales networks both domestically and internationally, it has acquired ISO certifications for quality management and established global standards. In recent years, it has increased investments in new technologies such as wireless charging systems for EVs and is focusing on sustainable energy-related fields. Amid intensifying competition as an industry leader, it aims for steady growth through product performance enhancements and new market development. Moving forward, it will respond to demand fluctuations associated with the expansion of the EV-related market while strengthening sustainability initiatives aimed at reducing environmental impact.

Trivia

Interesting Facts

  • Established in 1950, a long-standing electronic components manufacturer based in Kyoto
  • Operates multiple ISO-certified factories in Japan
  • Gaining global attention for EV technology development
  • Began manufacturing electronic passive components in the 1960s
  • Key parts supplier in Japan's electronic equipment industry
  • One of the few companies strong in electric double-layer capacitors
  • Global expansion through multiple domestic and overseas subsidiaries
  • Plays important role in power systems for Nissan Leaf
  • Holds proprietary constant temperature characteristic thermistor technology
  • Advanced automation introduced in much of manufacturing equipment
  • Actively investing in environmental technologies
  • Extensive domestic sales network for strong customer response
  • Supplies parts to diverse industries for stable revenue
  • Focusing on EV and renewable energy fields in recent years
  • Positioned from mid-tier to upper ranks in electric equipment industry

Hidden Connections

  • Deep ties through parts supply to Nissan Motor's EV charging systems
  • Shares manufacturing bases with Kyocera Group through business reorganization
  • Advances technological innovation through joint research with University of Production Technology Research Institute
  • Industry collaborations with major electronic parts makers like Tamura and Murata Manufacturing
  • Maintains top-class equipment introduction rate in Japan's capacitor manufacturing industry
  • Leads some industry standards in electronic components reliability testing
  • Utilizes Qualcomm-related technology in parts supply for some EV systems
  • Forms global production system in collaboration with Asian manufacturing subsidiaries

Future Outlook

Growth Drivers

  • Expansion of parts demand for electric vehicles
  • Growth in renewable energy-related markets
  • Advances in high-performance capacitor technology
  • Market expansion for digitalization and IoT-compatible products
  • Eco-product demand from strengthened environmental regulations
  • Demand for power infrastructure development domestically and internationally
  • Promotion of automation and labor-saving in manufacturing technology
  • Progress in commercialization of EV wireless charging technology
  • Expansion of sales channels in Asian markets
  • Enhanced capabilities for multi-variety small-lot production
  • Increasing demand related to smart cities
  • Response to advanced industrial equipment

Strategic Goals

  • Achieve 50 billion yen in sales from EV-related products
  • Meet environmental target of 30% CO2 reduction
  • Expand global market sales ratio to 60%
  • Strengthen development of smart energy solutions
  • Target 10 billion yen annual sales in new business fields
  • Practicalize next-generation energy storage technology
  • Improve product recycling rate and reduce waste
  • 20% productivity improvement through advanced automation
  • Promote diverse talent development and diversity
  • Achieve industry-leading customer satisfaction

Business Segments

Automotive Components

Overview
High-reliability components and power solutions for EVs and hybrid vehicles.
Competitiveness
Comprehensive capabilities in high-efficiency charging technology and power control
Customers
  • Automobile Manufacturers
  • Car Electronics Companies
  • Electric Motorcycle Manufacturers
  • Powertrain System Developers
  • EV Parts Suppliers
Products
  • Electric Double-Layer Capacitors
  • Switching Power Supplies
  • Wireless Charging Systems
  • Hybrid ICs

Industrial Power Supplies

Overview
Provides high-performance, high-reliability power systems for various industrial equipment.
Competitiveness
Long-life product design and quality management system
Customers
  • Industrial Machinery Manufacturers
  • Production Line Design Companies
  • Energy Management System Companies
  • Building Automation Companies
Products
  • Switching Power Supply Units
  • Power Capacitors
  • Control Boards
  • Current/Voltage Stabilizers

Electronics Components

Overview
Deploys high-quality components essential for electronic circuit design.
Competitiveness
Diverse product lineup and development capabilities
Customers
  • Home Appliance Manufacturers
  • Communications Equipment Manufacturers
  • Semiconductor Manufacturers
  • Electronic Circuit Design Companies
Products
  • Aluminum Electrolytic Capacitors
  • Film Capacitors
  • Hybrid ICs
  • Positive Temperature Coefficient Thermistors

Renewable Energy

Overview
Provides stable and efficient power components for renewable energy.
Competitiveness
Integration of power control and energy storage technologies
Customers
  • Solar Power Equipment Companies
  • Wind Power Manufacturers
  • Energy Storage System Developers
  • Energy Storage Operators
Products
  • Electric Double-Layer Capacitors
  • High-Performance Film Capacitors
  • Energy Storage System Components

Communications Infrastructure Equipment

Overview
Supports improved reliability of high-speed communications network equipment.
Competitiveness
Technological strength in high-frequency compatible products
Customers
  • Telecom Carriers
  • Base Station Manufacturers
  • Data Center Operators
Products
  • High-Stability Capacitors
  • Noise Filters
  • Constant Voltage Power Units

Medical Equipment

Overview
Provides high-precision, high-reliability components for medical equipment.
Competitiveness
Strict quality management and compliance with safety standards
Customers
  • Medical Device Manufacturers
  • Inspection Equipment Manufacturers
Products
  • High-Reliability Capacitors
  • Low-Noise Power Devices

Railway & Transportation Infrastructure

Overview
Supplies durable products for transportation infrastructure.
Competitiveness
Long-life design technology and environmental adaptability
Customers
  • Railway Vehicle Manufacturers
  • Signal Control System Companies
Products
  • Vibration-Resistant Capacitors
  • Power Control Equipment

Building Equipment

Overview
Develops efficient power control and environmentally adaptive products for buildings.
Competitiveness
Energy-saving technology and environmentally considerate design
Customers
  • Building Management Companies
  • Air Conditioning Equipment Manufacturers
Products
  • Power Control Devices
  • Capacitor Modules

Home Appliances

Overview
Supports improved reliability and energy efficiency in household electrical appliances.
Competitiveness
Versatile product lineup and low-cost design
Customers
  • Major Home Appliance Manufacturers
  • White Goods Manufacturers
Products
  • Compact Capacitors
  • Low-Power Consumption Power Supplies

In-House Product Development Partners

Overview
Provides custom design solutions tailored to customer needs.
Competitiveness
Flexible product development and technical support
Customers
  • Electronics OEMs
  • New Business Ventures
Products
  • Custom Capacitors
  • Dedicated Power Modules

Sensor-Related

Overview
Supplies sensors and components for precision measurement fields.
Competitiveness
High-precision technology and quality reliability
Customers
  • Measurement Instrument Manufacturers
  • Environmental Monitoring Companies
Products
  • Pressure Sensors
  • Temperature Compensation Thermistors

Power Infrastructure Products

Overview
Provides essential power control equipment for transmission and distribution facilities.
Competitiveness
High-durability design and system integration capabilities
Customers
  • Power Companies
  • Transmission and Distribution Equipment Manufacturers
Products
  • Large-Capacity Capacitors
  • Transformers
  • Reactors

Competitive Advantage

Strengths

  • Diverse domestic manufacturing bases and production capacity
  • Strong R&D organization focused on technology development
  • Varied product lineup
  • International certifications for quality management
  • Sales network through multinational expansion
  • Advanced technology holdings in EV field
  • Expansion of environmentally friendly products
  • Customer-oriented sales organization
  • Flexible product customization capabilities
  • Stable financial foundation
  • Long-cultivated industry brand strength
  • Partnerships with collaborative research institutions
  • Technological capabilities for diverse applications
  • Provision of high-efficiency switching power supplies
  • Development capabilities through industry-academia-government collaboration

Competitive Advantages

  • Short lead times possible due to well-equipped production and development bases domestically and internationally
  • High reliability and technological know-how in aluminum electrolytic capacitors build strong industry trust
  • Pioneering EV wireless charging technology to develop new markets
  • Achieves high-level quality assurance through ISO certification
  • Well-established system to meet diverse customer needs with varied product range
  • Expansion of environmentally responsive products serves as mid-to-long-term differentiation
  • Strengthens innovation through collaboration with universities in product development
  • Strategy to expand share in power control equipment field is paying off
  • Higher customer satisfaction compared to competitors due to robust user support
  • Balances cost and quality by appropriately distributing manufacturing domestically and internationally
  • Enables long-term R&D investment with stable capital base
  • Prepares for future growth through technology deployment in storage batteries
  • Provides total solutions from power supplies to capacitors
  • Accumulated trust from delivery records across diverse industries
  • Product designs compliant with stringent environmental regulations

Threats

  • Risk of market share decline due to competitors' technological innovations
  • Demand fluctuations from slowdown in EV market growth
  • Intensifying price competition in semiconductor and electronic components industry
  • Rising raw material prices and procurement risks
  • Impact of global economic uncertainty on exports and imports
  • Geopolitical risks at overseas production bases
  • Production delays from supply chain disruptions
  • Cost increase risks from strengthened environmental regulations
  • Profit deterioration from exchange rate fluctuations
  • Intensified competition from new entrants
  • Adaptation burden from changes in technical standards
  • Impact of international trade friction

Innovations

2024: Acquisition of Kyocera AVX Azumigawa Business Property

Overview
Acquired the business site of Kyocera AVX Components Azumigawa Co., Ltd. to expand facilities.
Impact
Enhanced production capacity improves market responsiveness

2023: License Agreement for EV Wireless Charging System

Overview
Entered into a license agreement with Qualcomm for EV wireless charging technology.
Impact
Strengthens business foundation in EV-related operations

2022: Development of High-Performance Technology for Electric Double-Layer Capacitors

Overview
Commercialized high-capacity, long-life electric double-layer capacitor technology.
Impact
Improves competitiveness in energy storage device market

2021: Expansion of Environmentally Friendly Product Series

Overview
Strengthened lineup of energy-saving and recyclable products.
Impact
Addresses ESG needs of customer companies

2020: Launch of New Switching Power Supply Series

Overview
Released power units achieving high efficiency and miniaturization.
Impact
Increased orders in industrial equipment field

Sustainability

  • Implementation of CO2 emission reduction plans at manufacturing sites
  • Promotion of renewable energy utilization
  • Waste reduction programs at production sites
  • Product design considering reduced environmental impact
  • Environmental conservation activities in collaboration with local communities
  • Strengthened environmental audits of supply chain
  • Enhanced occupational safety and health management and training
  • Promotion of green procurement
  • Equipment updates for improved energy efficiency
  • Promotion of sustainable material procurement
  • Thorough water resource management in business activities
  • Expanded environmental communication with customers