The TDK Group's Important CSR Issues

Contribute to the World through Technology

Contribute to the World through Technology
Important
Themes■■Addressing social issues by developing new kinds of products the world has not yet seen
Pursue zero-defect product quality

1

Material

Addressing social issues by developing new kinds of products theworld has not yet seen
The high-level fusion of Monozukuri and Kotozukuri
TDK contributes to society by anticipating customer needs and developing creative responses to issues

Atsushi Yakuwa

affecting customers and society as a whole. Breakthrough solutions are created by combining different

Prepreg Production GroupManager
Production Division, EV Power BU

technologies and products that arise from the manufacturing excellence or Monozukuri that TDK has

Energy Systems Business Group

cultivated for more than eight decades. TDK is now taking Monozukuri to the next level to create solutions

TDK Corporation

with expanded value for customers, partners and society: (a concept we call) Kotozukuri.
The some products demonstrate the high-level fusion of Kotozukuri and Monozukuri to which TDK aspires.
In this section, we take a closer look at how leaders from various divisions deploy these concepts in theirwork.

Expanding the scope of vision beyond materials to anticipate
solutions and contribute to the safety of environment-friendly vehicles
I am a leader in the Manufacturing
Group. The high heat dissipation
substrate prepreg*1 I was in charge ofdeveloping offers outstanding thermal
conductivity, allowing it to be installedon the circuits of components that
emit enormous heat. This innovation
also contributed to the developmentof a new DC-DC converter, which
while compact and lightweight still
offers high output. Embedded within
the product, the material does not callattention to itself or indicate the investment of time put into its development. With
this project, I realized it is important that we look not only at the material, but refine
our sensitivity so that we are constantly aware of our contribution to Kotozukuri, while
also sharing our thinking with those involved in Monozukuri. Going forward, I hope tocontribute to the development of even more compact, higher-performance DC-DC
converters, taking on the challenge of new materials and processes so that we canaid in boosting the popularity and greater safety of environmentally friendly vehicles.
*1 Prepreg: A semi-hardened glass or carbon fiber cloth impregnated with a thermosetting resin.

Automotive DC-DC converters
Automotive DC-DC Converters, Contributing to Reducing the Environmental Load of Cars
Recent years have seen policies

2

Processannounced to promote a shift to EVs

Introduction of robot cells*2 makes low-volume, high-mix Monozukuri
possible stable, high-quality manufacturing contributes toautomobile safetyin Europe, China, and elsewhere, andthe widespread use of EVs is expected

DC converters that are smaller, lighter,I am in charge of deploying robot cells
in the manufacture of the DC-DC converter. This production technique has
allowed us to adjust the number of cells
to respond flexibly to changes in volume,
which in turn has enabled low-volume,
high-mix production without picking,reducing costs and making traceability
by individual product possible. Working
with other departments, the ability toidentify manufacturing problems andquickly provide feedback to the designteam were particularly important factors. Variability or flaws in automotive components
can have serious consequences for life and health. The introduction of robot cells toensure a stable supply of high-quality products is thus directly connected to automotive
safety. Accelerating the cycle by which improvements are reflected in design, as we didwith this project, increases our First to Market advantage. This is why we hope to continue
using Monozukuri technology to play a part in Kotozukuri that responds to market needs.

highly efficient, and highly reliable.

*2 Robot cell: A method in manufacturing where one or more robots are employed in the assembly of products.

to accelerate worldwide. Automotive
DC-DC converters are responsible forcharging auxiliary batteries in EVs,
and for supplying the power needed inelectrical systems, and high-efficiency
DC-DC converters are also in demandfor extending vehicle cruising range.

Monozukuri Element Development

technology accrued through its

Monozukuri Centerswitching power supplies, TDK is

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Senior Manager

Making full use of the power electronics
development of consumer and industrial
Automotive DC-DC converters▶

Kenji Kotegawa

developing and offering automotive DC-

Department
Production Engineering HQ
TDK Corporation

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The TDK Group's Important CSR Issues

3

Component

Masahiro Gamou
ManagerDevelopment Division
EV Power BU
Energy Systems Business GroupTDK Corporation

Contribute to the World through Technology

TDK’s Monozukuri conceives new components from materials andrealizes solutions for customers
I am responsible for the optimizationand miniaturization of magnetic components. All car makers have a common
need of requiring the DC-DC converter to be smaller, capable of handlingvery high current and also be highly
efficient. But each customer has different specifications, which presents achallenge for us.
In order to realize Kotozukuri for eachcustomer, we can draw upon our original innovation: ferrite. This essential
material, our core resource, allows us to create new products and solutions thatcompetitors cannot.
Ferrite, uniquely among the various magnetic materials, has the advantages ofbeing low in cost, able to operate in high frequency, and capable of taking myriad
shapes. Working with other TDK divisions, we can create high value-added products from ferrite. In other words, by approaching and advancing our Monozukuri withnew ideas, we can bring about true fusion. I look forward to working closely withother departments and divisions with different experiences and knowledge in orderto shape the next generation of Monozukuri.

Solid-state rechargeable batteries
Safe battery technology for IoT: CeraCharge™ the world's first solid-state rechargeable
battery in SMD technology

Smart home

Healthcare

7/7 WED

Wearables

Energyharvesting

12:30

CeraCharge™ is a unique battery based on solid ceramic-based electrodes and electrolyte produced with

4

Solution

Advancing Kotozukuri and Monozukuri thataligns with customer needs

multilayer technology. This enables a relatively high energy density based on Li-ion battery technologies
and smallest volume to be combined with the high volume manufacturing benefits of multilayer components.
As a key safety feature, CeraCharge™ eliminates the risk of fire, explosion, or leakage.
CeraCharge™ will open up a wide range of possible applications – particularly in devices intended for the

Yoshiaki Ishikawa
Development Division
EV Power BU
Energy Systems Business GroupTDK Corporation

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My job is designing the substrate
for the DC-DC converter. Since thisproduct serves as the vehicle’s power
supply source, any failure could risk
an accident.
We need to consider every factor,
including the extent to which we canpredict dangerous situations, overall
safety, and reducing the vehicle’s
environmental load.
At times, customer needs range wellbeyond anything we might imagine,
making it essential that we build close relationships with their suppliers and ensure
we are all headed in the same direction. In that sense, you could say my role isthat of a liaison with the Monozukuri worksites, helping customers achieve their own
Kotozukuri.
Working with everyone involved in manufacturing at TDK, I hope to be more in tune
with our customers, ensuring I approach my design work from their point of view,and continuing to take on the challenge of resolving social issues such as safety
and the environment.

Internet of Things, such as energy storage devices for Bluetooth Beacon, wearables, energy harvesting, orbackup battery for real-time clocks.

Material

Process

Component

Solution

New kinds of solid lithium-oxide
powders enable safe energy
storage.

An extremely precise
manufacturing process combinedmaterial know-how with multilayer
and thermal process control.

The CeraCharge™ design was
validated and aligned to the realneeds of both our customers andtheir customers.

CeraCharge™ was developed toprovide a reliable and safe energy
source, especially for compact
mobile applications.

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The TDK Group's Important CSR Issues

1

Material &Process

Contribute to the World through Technology

Combining our material and multilayer technology know-how with
our thermal process expertise2

Component

Material and process go hand in hand with CeraCharge™. It was first necessary tocreate new kinds of solid ceramic materials that could store sufficient energy safely
and be able to perform up to 1,000 charge/discharge cycles.
The solution was innovative lithium-based oxide powders for both electrodes andelectrolyte that are perfectly matched to each other and are capable of being co-fired
in a special multilayer process.

Dr. Yongli Wang
Co-project leader CeraCharge™,
Piezo & Protection Devices BusinessGroup, Corporate R&D Materials,
Deutschlandsberg, Austria

In addition to the materials themselves, an extremely precise manufacturing process
had to be implemented for the high-volume production of the multilayer components.
Our challenge was to transfer the breakthrough technology to the Piezo & Protection
Devices Business Group (PPD) and integrate it into an industrial-scale process.
To do so, we faced the key challenge of combining our knowledge about all-ceramic-battery material systems and multilayer technology with our expertise in precise
thermal process control for the copper inner electrodes.
We succeeded in setting up sample production on a pilot line thanks to the extensive
material know-how at the TDK Technology HQ in Chiba, Japan, and the industry-leading competence of PPD for multilayer processing, thermal process control and backend processes acquired through years of experience with a broad range of ceramic
and piezo products at the PPD in Deutschlandsberg, Austria.
The introduction of such novel components into the existing PPD ecosystem requireda totally new mindset and multicultural communication to enable an efficient cooperative development process between the BG, Technology and IP HQ.
The challenge will be to tap into the technological competence from the entire TDK
organization and our lead customers in order to provide solutions that fulfill dynamically changing requirements with more flexible designs, shorter lead times, better
performance, higher quality and more reliability.

Masahiro Oishi
Co-project leader CeraCharge™,
Piezo & Protection Devices BusinessGroup, Corporate R&D Materials,
Deutschlandsberg, Austria

3

Solution

Markus Puff
Head of Corporate R&D, Piezo &Protection Devices Business Group,
Deutschlandsberg, Austria

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More than 30 key customers were visited to gather valuable
feedback about applications and markets
My focus during the transfer of the CeraCharge™ technology from TDK's Technology
and Intellectual Property HQ in Japan to the PPD BG in Deutschlandsberg, Austria,
was on the development of the actual component. The first stage involved material
screening and development and process screening.
For these purposes we developed first prototypes and established valid characterization procedures. The definition and implementation of a supply chain for thematerial demand throughout the R&D process was a special challenge in order to beable to produce CeraCharge™ prototypes. All along, our objective was to develop amarketable component, and in order to promote the new product to the customers,
actual demonstrators were built.
Already in the early stages of development, more than 30 key customers were visitedand shown the product's features and specification range. We used these meetings
to gather valuable feedback about the potential applications and markets as well as
validate and align our design to the real needs of our customers and their customers,
and this information was fed back into the development process.
At the same time, we intensified cooperative development activities with IC companies
on a system level. To create even more value for customers and users, we focused not
only on the development of the CeraCharge™ component alone, but also considered
how CeraCharge™ can be used and how we can create new markets.

The development focus is always on the solution and how
customers integrate CeraCharge™ into their systems
In the context of the "Kotozukuri" philosophy for creating solutions with expanded value
for customers, partners and society, we sought to create a CeraCharge™ solution thatmeets all market requirements.
To accomplish this goal, it is necessary for all aspects of material and process designand component development to be optimally coordinated and interconnected. For
this we defined USPs and benefits, analyzed the advantages and disadvantages of
the technology on system level, performed benchmarking and feasibility studies, andexplored cooperation with IC companies and other market leaders. Our development
focus is always on the solution and the target applications with a strong emphasis on
the benefits for our customers and how they integrate CeraCharge™ into their systems.
Over the entire development process, open and direct fact-based communication
among the global, multicultural team proved to be the key to solving any challenges
that arose. In order to realize our objectives and make a substantial contribution to thenext generation of energy storage devices, we must further broaden and deepen ourapplication know-how.
At the same time, we must also intensify the cooperation between Technology HQ,
PPD BG, Sales, customers and other partners in order to enhance the benefits anduser experience of the new CeraCharge™ technology.

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The TDK Group's Important CSR Issues

Contribute to the World through Technology

Pursue “Zero-defect Product Quality”

Motion sensors

ICM-42600 6-axis motion sensor with 2 auxiliary interfaces
to support dual-OIS camera modules for Smartphones

With its proprietary technology, TDK has emphasized the pursuit of zero-defect product quality, based on

Monozukuri that contributes to culture and industry through creativity. This is because we believe the key tosuccessful Kotozukuri, or providing integrated solutions, lies in the pursuit of zero-defect product quality.

MEMS Motion Sensors are Semiconductors that

The Pursuit of Zero-defect Product Quality Starts from the Breaking Point

include microscopic structures whose exact
movement is measured through capacitancechanges in surrounding electrodes. Acceleration● Protecting customer safety is our lifelinea n d ro t a t i o n a re m e a s u re d a l o n g 3 a x i s ,Why pursue zero-defect product quality? First and foremost, theobjective is to protect customer safety, which is the lifeline of TDK’s
business. Only by building product quality into every level, fromdevelopment and production processes onward, can we respondto the needs of our customers. For example, conducting pre-risk
assessments during design screening and prior to mass production
allows us evaluate latent risks, with the goal of achieving zero product defects when we do move to mass production. After taking thoseefforts to the breaking point, we work even harder. That is the true
pursuit of zero-defect product quality.

allowing the sensor to accurately track thechanges in position and orientation of a device.
Motion Sensors provide critical inputs to control
and navigation systems. One key applicationis the use of motion sensors to control Optical
Image Stabilization (OIS) in camera modules
for Smartphone and Digital Cameras. TDKInvenSense new motion sensor can support

Satoru Sueki
General Manager of Quality Assurance HQ

2 independent OIS systems, a key enabler ofCorporate Officer

dual-camera OIS solutions in Smartphones, and▲︎ICM-42600: World’s first 6-axis MEMS Motion Sensor
supporting dual-camera with dual-OIS image stabilizationa World first.

DesignProcess

Test

Solution● Everyone participates in working toward a larger goal

TDK Corporation

In pursuing zero-defect product quality, it is crucial that each of us thinks and acts in terms of what each of us can do fromthe standpoint of our respective positions. This leads to the creation of value, and to the development of a global workforce
comprised of employees who draw on their individual capabilities and bring ever greater motivation to enhancing their value of
their work. The pursuit of zero-defect product quality involves more than simply reaching a numerical goal. As social changes
progress, the quality expected of us will also grow. Today, we face issues such as an aging society and widening inequality, andgoing forward, we will be expected to generate value from a humanitarian and social welfare perspective. We will continue our
pursuit of zero-defect product quality, responding to the evolving need for greater quality as we work toward this larger goal.

TOPIC: Introduction of a Model Line
Making use of sensing
PressureMultilayering

Layout of a single-die 6-axis
MEMS Gyroscope andAccelerometer Motion Sensor

8-inch wafer from TSMC with
TDK-InvenSense 6-axis MEMS
Motion Sensors

TDK-InvenSense proprietary“high-speed tester” for functional
compliance verification of 6-axis
MEMS Motion Sensors

World’s first dual-OIS 6-axis
MEMS Gyroscope andAccelerometer, ICM-42600

Process

Product

Pursuit of the ideal conditions▶︎ The full article of Motion sensors can be found on our website.

Industry 4.0 + Pursuit of “zero defect”

At the Honjo Factory East Site completed in 2016, TDK is
moving forward to deploy a model line for the pursuit ofzero-defect product quality in the production of multilayer
ceramic chip capacitors. In the multilayering process,which can have a significant impact on the quality ofthese capacitors, we compare a vast amount of sensor
data regarding equipment operational status and productworkmanship against data on product quality in pursuit of
the ideal conditions for a non-defective product. Results
obtained with this model line will be rolled out across otherprocesses going forward.

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