Joint Venture with Nippon Chemical Industrial TDK Strengthens Material Expertise for MLCCs

Related Vendors

FAULHABER Drive Systems

dataTec AG

SIMTOS (Seoul International Machine Tool Show)

New MLCC generations are not created in the layout, but in the material. TDK is therefore pooling its chemical and application expertise in order to exploit this lever more quickly.

TDK and Nippon Chemical Industrial already signed an agreement in principle on November 27, 2025 to examine the establishment of a joint venture. After further consultations, the two companies have now officially established the joint venture. Under the name "TDK-NCI Advanced Materials", the joint venture commenced operations on April 1, 2026—with TDK as the majority shareholder (51%) and Nippon Chemical Industrial with 49%. The aim is to develop ceramic materials and corresponding manufacturing processes, particularly for multilayer ceramic capacitors (MLCCs).

Material As A Miniaturization Bottleneck

MLCCs are among the inconspicuous but crucial components of modern electronics. Whether power electronics, automotive applications or high-frequency systems—even complex systems cannot function reliably without stable, low-loss and temperature-resistant capacitors. However, the performance of these components is determined less by the design than by the materials used.

Nippon Chemical Industrial brings over 130 years of experience in the development of inorganic functional materials—the company was founded in 1893. Its core products include barium titanate, a key material for ceramic capacitors. TDK, on the other hand, has extensive know-how in component development, application and industrial scaling. The combination of both competencies should enable material development, process design and component performance to be more closely interlinked.

Shorter Development Cycles As A Competitive Advantage

The aim of the collaboration is to speed up development processes. In practice, material development and component design are often separated from each other, which prolongs iteration loops. New material systems must first be synthesized, then adapted in terms of process technology and finally tested in the component. Each of these steps takes time.

By bundling material and application expertise within one organization, these loops can be significantly shortened. Developments can be transferred more quickly from the laboratory to the application. For TDK, this means one thing above all: shorter time-to-market for new capacitor generations. A decisive factor in markets that are characterized by a high speed of innovation.

Strategic Step Towards Vertical Integration

For TDK, the joint venture is a step towards vertical integration. While many manufacturers develop electronic components based on purchased materials, TDK is thus securing direct influence on one of the most critical levels of value creation.

This control over the material base offers several advantages. Firstly, it reduces dependencies on external suppliers, especially for strategically important raw materials and primary products. Secondly, it opens up the possibility of tailoring material properties specifically to future requirements. For example, with regard to higher energy densities, better high-frequency properties or greater reliability under demanding operating conditions.

This aspect is becoming increasingly important, especially in the context of wide bandgap semiconductors such as SiC and GaN. Fast-switching systems place new demands on passive components. Capacitors must not only become more compact, but also less lossy and more stable. Progress here can only be achieved with new material systems.

At first glance, the establishment of the joint venture looks like a classic industry move. In fact, however, it is an expression of a deeper development. Competition in electronics is increasingly shifting to the material level.

Companies that expand their materials expertise gain long-term advantages in terms of innovation, cost structure and security of supply. For TDK, the joint venture is therefore less of a short-term boost and more of an investment in its own technological sovereignty. (mr)

Future-Proof Authentication with Universal RFID Readers

Universal RFID Readers: One Solution for All Credentials