NDK has been mass producing quartz crystals of uniform high quality utilizing its own technology. On the basis of this experience NDK manufactures and supplies highly accurate, highly reliable crystal products using advanced technology and thorough quality control techniques.
To rebuild the Company and realize a new NDK, They will carry out the following structural reforms.
1. Devote Their Resources to 5G-related Businesses
They will endeavor to build a new NDK that positions businesses based on 5G wireless communications system (next-generation high-speed communications standard) as the pillars of their future growth and development.
They are focusing on, and will devote their resources to, 5G-related businesses such as automated driving, ADAS, IoT, and the base station market.
Automotive Electronics Market (including Automated Driving and ADAS)
Due to advances in electrical devices and the practical use of automated driving features, it is expected that there is an increase in the number of automobiles equipped with ADAS and a dramatic increase in cameras, radar, and LiDAR (light detection and ranging) used in ADAS. Accordingly, they expect the number of crystal units per automobile to increase by more than 10%, against expected growth of around 3% in global automobile production.
With a market share in the automotive electronics market of more than 50%, they will continue to develop highly reliable products in response to our customers' needs.
IoT (Internet of Things)
In the future, IoT will connect a diverse range of devices wirelessly, and it is crystals that are responsible for wireless communications functions.
In the year ending March 31, 2019, they expect an increase in the sales of products for IoT used in healthcare and logistics and the use of new crystal units for near-field communications (NFC) functions in the next models of high-end smartphones.
They expect significant demand for IoT devices in the future and will sell crystal units using a global network focused on standardized products.
Industrial Equipment Market (including 5G Base Stations)
With 5G on the horizon, equipment for small cell base stations is expected to be improved to adapt to the increasing volume of data and faster communications speeds. Targeting these small cell base stations, they will prepare highly stable TCXO devices that can deal with a broader temperature variation. Also, it is indispensable for 5G macro base stations to minimize GPS-signal downtime caused by weather change or equipment malfunction. They are developing the world’s highest performance class of a precision oven-controlled crystal oscillator (OCXO).
Demand for crystal devices for base stations is expected to remain weak in fiscal 2019 ahead of the transition to 5G, but they expect that demand will increase from next fiscal year, when 5G investment moves into full swing.
2. Restructure Production System
They will review the current production system and transfer a part of production lines from Japanese factories to one of overseas factories in a bid to raise production efficiency and cost-competitiveness across the entire Group.
3. Reducing Fixed Costs
They will reduce fixed costs by enhancing productivity through measures such as automating the production process and promoting the streamlining of administrative departments.
4. Centralize Material Procurement Functions in Head Office
The centralization of the Group’s entire procurement business as a single division at the Head Office will strengthen cost reductions of material procurement.
5. Centralize Quality Assurance Functions in Head Office
In business for 5G-based systems including devices installed in automobiles, demand for quality is increasing more than ever.
To date, the Company has developed systems where each production subsidiary carried out quality assurance, but, in order to further enhance the system and guarantee high quality, they will integrate the quality assurance functions to the Head Office.
NDK is product portfolio consists of Sensors, RF/IF and RFID, Crystals and Oscillators.