October 14, 2021

News Release

KAGA FEI Co., Ltd.
KAGA ELECTRONICS CO., LTD.

KAGA FEI to Make Full-scale Entry into the Small Wireless Module Business‐ Transfer of the Bluetooth® and Wireless LAN module business from TAIYO YUDEN ‐KAGA FEI Co., Ltd. (Headquarters: Yokohama, Kanagawa Prefecture; President andRepresentative Director Junji Ogihara; hereinafter, "KAGA FEI"), a consolidated
subsidiary of KAGA ELECTRONICS Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo;
President & COO Ryoichi Kado), has acquired the commercial rights, development andmanufacturing technologies, and intellectual property rights pertaining toBluetooth®(Note1) and Wireless LAN modules from TAIYO YUDEN Co., Ltd. (hereinafter,"TAIYO YUDEN"), and will start its small wireless module business from January 2022.

1. Aim of this business transfer
With the arrival of the IoT era in which all objects connect to the Internet, wirelessmodules are a growth market that can expect a sustainable increase in demand. In
particular, the small and low power consumption Bluetooth and Wireless LAN modules
that KAGA FEI will acquire from TAIYO YUDEN are promising products for major
worldwide customers engaged in productizing IoT products in the communicationequipment and consumer electronics fields.
KAGA FEI has possessed its own internal engineering department as the core trading
company within the Fujitsu Group since the days of its predecessor Fujitsu Electronics
Inc. and conducted contract development and manufacturing of LSI and other customer
products. In addition, regarding the wireless business, the company has an extensive
development track record involving both software and hardware such as thedevelopment of specified low-power wireless modules using mesh networking
technology. In addition to applying such knowledge to offer key devices, the company
aims to expand its IoT solutions business through a broad ability to make proposals
ranging from its previous network/cloud, software development, and Radio TypeApprovals to also include EMS（Note2） services.
（Note１）The Bluetooth® word mark and logos are owned by Bluetooth SIG, Inc. and the use ofsuch marks by KAGA FEI Co., Ltd. is under license.
（Note２）EMS： an abbreviation of Electronics Manufacturing Service. Service for contracting out thedevelopment and production of electronic equipment.

－ 1 －Since KAGA FEI was added to the KAGA ELECTRONICS Group in January 2019, it has
proactively advanced the rearrangement of the business portfolio to include new vendor
acquisition and the proposal of EMS services based on the recognition of improving
profitability as an important management issue. This recent acquisition of the wirelessmodule business is also a part of that initiative.
Moreover, the addition of TAIYO YUDEN's small, high-density mounting technology tothe KAGA ELECTRONICS Group's EMS business through this business acquisition has
enabled a broad range of proposals to customers. The Group aims to further improvethe competitiveness and added value of the business by incorporating the production of
newly developed products into the Group in the future.
2. Wireless modules which are part of the business transfer
The small wireless modules that KAGA FEI will acquire under this agreement possess
the following advantages.
1) World's smallest ultra-small Bluetooth Low Energy modules
An antenna is built-in, and they are suited to wearable and other devices that
require a small size.
2) Software embedding
Software can be embedded into some Bluetooth modules.
3) Extensive lineupThe lineup includes various packages with Bluetooth/Bluetooth Low
Energy/Wireless LAN/Wireless LAN＋Bluetooth features.
A broad range of products has been prepared to meet diversifying customer needs.
3. Company overview of TAIYO YUDEN
1) Company name
: TAIYO YUDEN Co., Ltd. (http://www.ty-top.com/ )2) Representative: President and Chief Executive Officer Shoichi Tosaka
3) Head office location : Kyobashi East Bldg., 2-7-19, Kyobashi, Chuo-ku, Tokyo 104-0031
4) Established: March 23, 1950
5) Business activities : Development, production and sales of electronic components
4. Schedule
1) Signing of the business transfer agreement : October 13, 2021
2) Date of the business transfer enactment: January 1, 2022 (scheduled)
5. Impact on performance
The corresponding wireless module business is scheduled to start from January 2022
and will have a limited impact on the results for the fiscal year ending in March 2022.

■Business-related inquiries
KAGA FEI Co., Ltd.
（URL：https://www.kagafei.com/jp/eng/）
Yoichi Nakamura, Business Development
Div. Solution Unit
Shin-Yokohama Chuo Bldg.
2-100-45, Shin-Yokohama, Kohoku-Ku,
Yokohama-shi, Kanagawa 222-8508, Japan
Email：yonakamura@jp.kagafei.com■Inquiries from the news media
KAGA ELECTRONICS CO., LTD.
（URL：https://www.taxan.co.jp/en/）
Yasuhiro Inagaki, Investor Relations &Public Relations Section
20 Kandamatsunagacho, Chiyoda-ku,
Tokyo 101-8629, Japan
TEL:+81-3-5657-0106 / FAX:+81-3-3254-7133
Email：y_inagaki@taxan.co.jp－ 2 －