Designing the Future of the Universe

Computer-generated image used for illustrative purposes,
image courtesy of the Japanese Aerospace Exploration Agency (JAXA) ©

Satellites take humankind’s dreams into space. Those satellites contain devices made at NDK. Devices used in satellites
face extremely harsh conditions from shocks and vibrations during launch, to severe thermal fluctuations, and the like.

01

We will continue to deliver products that reliably perform even in such harsh operating environments. Indeed, we are theonly Japanese crystal unit manufacturer approved for use by JAXA, the Japan Aerospace Exploration Agency.

Technology to Protect What’s Important
Autobraking systems that detect danger and auto-steering systems that prevent cars from straying out of their lanes are
just two examples of new applications for our crystal devices in advanced driver assistance systems (ADASs). Our
components keep you safe by always transmitting accurate frequencies even amid severe shocks, vibration, and harshtemperature fluctuations.

02

Comfort in All Areas of Life
From controlling household appliances to tracking product inventory, from feeding pets to watering plants, the Internetof Things (IoT) offers consumers various solutions. This, too, is supported by NDK technology. Our crystal devices

03

ensure precise synchronization and stable communication between these “things” by providing each of them with abasic frequency.

inside of future.
Creating a Crystal-Powered Future from Inside

In 1964, after eight long years of trial and error in a quest to unlock the true potential of crystal, NDK
successfully mass-produced synthetic crystal with a much higher purity than natural crystal. For morethan half a century since then, our world-leading crystal technologies have helped electronics develop
from inside the devices.
The ongoing evolution of electronics solutions helps make the world safer, more secure, and more
comfortable—and that evolution is made possible by crystal devices.
At NDK, our quest is to leverage our strengths as a comprehensive maker of frequency solutions touncover the future with crystal.

04

A Message from the President

NDK Will Continue to Support Future Developmentfrom Inside the Devices

Hiromi Katoh
Representative Director and President

05

NDK's Founding Philosophy
Contributing to the prosperity ofsociety and world peace throughour service to customers.

inside of future.
Creating a Crystal-Powered Future from Inside■ Crystal is “Salt for Electronics”
At NDK, we make crystal devices for the control, selection, andinnovate and stay abreast of society’s ever-changing demands.

detection of frequencies. Electronic devices work in frequencies

international standards for electronic components as a member

as they generate electronic waves, which make crystals a vitallyof the International Electrotechnical Commission’s technicalimportant component. Crystals have been called “salt forcommittee on piezoelectric devices. In that capacity, we

electronics”—the basic element that upholds the modern,contribute to the establishment of Japan-led global standards,

information-based society. Without crystal, our living standards

the expansion of the crystal market, and a larger market share

would be set back by around a hundred years.

for Japanese products. Also, we were the first Japanese■ The Founding Philosophy at Our CoreNDK was founded in 1948 as a vehicle for contributing to theprosperity of society and world peace through our service tocustomers. That philosophy is founded on a belief that providing
reliable, high-quality, attractive products at an appropriate priceElsewhere, we are actively involved in the creation ofcompany to adopt International Financial Reporting Standards(IFRS). Our involvement in international standard activities andour adoption of IFRS is an illustration of our desire to stay aheadof trends and cement our status as a trusted global partner.

can be useful to customers and can, by extension, help society■ Our Vision for NDK in the Future
Regarding business environment, it is expected that the number

prosper. Moreover, the founder believed that enhancingof Advanced Driver Assistance Systems (ADAS) installed incommunication among people through accurate information

automobiles will increase and that 5G smartphones will become

would promote international understanding as a cornerstone ofmore widespread as progress are made toward upgrading

lasting peace. This belief was generated by the founder,

infrastructure for the next-generation communication standard

Masamichi Takeuchi, from his experiences of the war. Today, we

5G base stations. As a result, crystal devices are expected to be

apply this founding philosophy in every facet of our business, andincreasingly in demand for automotive electronics, 5G basehold an annual commemorative event where all employees gather

stations and 5G smartphones, which are the Company’s priority

to share and reaffirm our devotion to this founding philosophy.

focus fields. In automotive market, NDK has been supplying

Throughout NDK’s history, we have endeavored not only to

crystal devices since the beginning of the move toward theamass skills and technologies, but also to earn customers’ trust.

electrification of automobiles in the early 1970s and has earned

To that end, our manufacturing practices are built on the “three

the trust of customers for decades. As 5G requires highlyGs”—genba, genbutsu, and genjitsu—go and see, get the facts,

accurate and highly reliable crystal devices that meet the needs

grasp the situation, the fundamentals of manufacturing. In thatfor high frequencies and miniaturization, NDK started developing

way, we can establish solid reliability by upholding a level ofblanks utilizing photolithographic processing technology in 2008

quality that ensures our products work accurately in all

and has accumulated technical expertise through extensive trial

environments. Moreover, we frequently visit our customers so as

and error. NDK will provide the highly reliable and high-precision

to anticipate their needs and propose the ideal products. In thisproducts required in the 5G era using technical expertiseway, manufacturing, sales, and engineering divisions are able toaccumulated over years and continue to contribute to thework as a cohesive unit to meet a diverse range of needs, and tocreation of a safe, secure, and comfortable society.

06

NDK Products: Supporting Every Aspect of Life
Crystal devices use signals created by precise, stable vibrations to transmit and process hugevolumes of information accurately, and have become the standard for these operations. As such,they play a vital role in regulating all internal movement of electronic devices.
Consequently, NDK products can be found in every aspect of life such as in smartphones,
computers, home appliances, cars, game devices, digital cameras, audio equipment, and medical
devices.
At NDK, our quest is to leverage our strengths as a comprehensive maker of frequency solutions tomeet growing demand from the crystal device sector.

Denotes the number of crystal devices used
in a single piece of equipment.

OfficeAppliances

smartphones

2 to 5TVs
Blu-ray devices

Tablets

SmartmetersHouseholdappliances

DigitalcamerasGame consoles
PCs
Hi-resaudio

3 to 4(laptop)

2 to 3

Projectors

Multi-function printers

Servers(TV)<Major Products>

Crystal Units

Crystal Oscillators

SAW Devices

Application of voltage results in a highly precise,stable frequency.

Components that combine a crystal unit and an
oscillation circuit. Comes in a variety of types,
including those with thermostatic ovens, as wellas temperature-compensated types, andultra-high stability types.

Components that select electronic waves of only
the required frequency from the infinite
frequencies in the air.

Components that harness crystal’s superior
optical properties for use in quartz double
refraction board and wavelength board.

[Applications][Applications]smartphones, telecom infrastructure
equipment, automobiles, etc.

Cameras, steppers used in the manufacture ofsemiconductor devices, etc.

[Applications]smartphones, PCs, AV equipment,
automobiles, satellites, etc.

[Applications]smartphones, telecom infrastructure
equipment, automobiles, etc.

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Optical Devices

Satellite Telecom& Broadcast

Engine control

Environmental
Investigation& Research

Airbags

Millimeter-wave radars

Car navigation systems

Car cameras

Smart keys

Approx. 100

Automotive
Devices

Hospitals(high-end car)

MobileCommunication
Base Stations
1 to 10Synthetic Quartz Crystals
Years of experience and expertise enable us tomass produce synthetic crystals tailored for
optimal electric and engineering performance.

Frequency Synthesizers
A single module capable of oscillating at manyfrequencies.
[Applications]
Digital terrestrial broadcasting base stations,microwave communication devices, etc.

Ultrasonic Probes

Outgas Sensors

Developed through exploration of the potential of
the ultrasonic technologies built up through yearsof crystal device manufacturing.

Developed jointly by NDK and JAXA to measuregas emitted from materials.

[Applications]

To measure gas emissions for use in space andmaterial manufactures.

Sensors for medical ultrasonic diagnostic
devices, etc.

[Applications]08

inside of future.

Technical Strength
As the pioneer of crystal devices,
NDK will respond to the needs ofthe next generation
Crystal devices are an indispensable part in the operation of all kindsof electronic equipment. We continually seek technical innovation todrive the evolution of smartphones, home appliances, computers,
cars and the like.
■ Developing Compact, Highly Precise Products
As electronic equipment has become smaller and more highly
functional, there has been a need for crystal devices to do the same.
Generally, reducing the size of crystal devices raises the risk ofdeterioration in temperature and aging properties, but we seek tocircumvent those risks with our advanced technologies in areas likeinternal temperature control, frequency control, and precise
mechanism design simulation. In this way, our development focuseson products that can anticipate and meet the latest needs.
For instance, in 1998 we became the first to develop a single-chip
integrated circuit for temperature-compensated crystal oscillators,
which provided huge impetus to accelerate the development ofsmaller, more precise crystal oscillators, a key component in mobile
phone evolution. Following this, one client asked us to develop an
oscillator 0.1 millimeters lower than the current size within twomonths. In electronics, 0.1 millimeters is a considerable reduction,and this meant developing from scratch. We began with the existingelemental technologies built up by our core technical departments,

09

Synthetic crystals produced in-house

Laboratory ATOM, NDK’s state-of-the-art
research facility

and enlisted the help of those involved with production technology
and prototyping. The team came up with a cohesive plan to make theintegrated circuit and ceramic package slimmer and to revise thesealing method. Finally, they were able to meet the client’s demands.
Moreover, increased data volumes and faster speeds intelecommunications have given rise to greater demand for moreconnective infrastructures. Here, too, the result is a need for evensmaller sizes and higher precision. We endeavored to make smaller
devices with stable frequency by developing a unique signal
processing technology (twin technology) that focuses on the
difference in oscillation frequency from using two orders, which
resulted in a world-beating level of precision.
■ Development of high-value-added products that apply ourcrystal devices technologies
In addition to our more than 50 years’ experience in ultrasonic probes
for medical use, Chitose Technical Center established in 2004 has
been taking the initiative to develop high-value-added products that
apply our crystal devices technologies. Products include frequency
synthesizers for special applications, and outgas sensors (jointly
developed with JAXA) for use in space. We will continue to anticipate
next-generation needs and move forward with R&D that creates thekind of products that can contribute to a safer, more secure, more
comfortable society.

NDK Technology: Facts and Figures

Top

Share in the Automotive Market

An incredible global
market share of 55%!*
NDK began developing highly
reliable products in the early days of
motoring popularity, and today
boasts an overwhelming share of themarket. Moving forward, we arededicated to developing products
designed to meet real needs.

Company C
7%Company A
15%

NDK
55％

*Market share of automotive crystal devices (Fuji Chimera Research Institute, NDK estimate)

Crystal Wafer Thickness:

0.03 ppb

Accurate to within 0.03 mm over 1,000 km
between Tokyo and Shimonoseki

Others 10%
Company D
3%Company B
10%Frequency Precision:

10 μm

Our products boast frequency precisionof up to 0.03 ppb.* In terms of
measuring distance, that means
accuracy to within 0.03 millimeters over
1,000 kilometers—a world-class level ofprecision. No wonder our components
are highly rated in segments requiring
ultra-high precision, such as mobile
communication base stations.

Phase Noise:Tokyo ⇔ Shimonoseki
1000 km*Highest precision among products that do not use
signal processing-175 dBc/Hz at 10 kHz

Only one ninth the thickness of a human hair

Noise so low it can’t be measured

The thinner the crystal wafers are,the higher the frequency capabilitiesof the crystal units. At NDK, we havethe technology to make wafers 10
micrometers thick (one hundredth ofa millimeter), close to the minimum
possible thickness.

Phase noise is the unwanted portion of afrequency component. At NDK, we havedeveloped crystal oscillators withextremely low phase noise, as little as-175 dBc/Hz. These are used inhigh-end audio devices for their ability to
get the listener closer to optimal fidelity.

Crystal thickness:
10 μm

Human hair thickness:
Approx. 90 μm
Thickness comparison of a crystal wafer
and human hair.

DuCULoN ®, an ultra-low phasenoise crystal oscillator

10inside of future.

Impeccable Quality
High reliability earned throughuncompromising quality control

The crystal oscillator production line

■ Pure CraftsmanshipFor crystal devices, high reliability refers to the ability to deliver the
specified properties even in extreme fluctuations of temperature,humidity, vibration, impact, or other environmental factors. Those
properties must also be sustained over the long term. Our ability toprovide this level of reliability is based on the uncompromising quality
control that defines our manufacturing practices.
■ The NDK Quality Control Structure
Our quality control is based on the “three Gs” policy—go and see, get
the facts, grasp the situation— which ensures quality is constantly an
integral part of the production process. We also pursue a Zero
Defects program, which has contributed to our ability to provide
reliable products for many years. Moreover, we were one of the early
adopters of global standards for quality control, environmental
control, and medical management systems, such as ISO 9001,
ISO/TS 16949, ISO 14001, and ISO 13485. By maintaining such astringent quality control structure, our products have earned the trustof organizations that demand impeccable reliability, including JAXA,
which uses crystal units for space exploration.

11

An analysis lab with a scanning electron
microscope

Plan

Stringent quality policies
Each worker is responsible for
implementing our Quality First
policy, and must strive to maintainquality standards with the goal ofeliminating in-market productdefects.

ActionOngoing quality improvements
Based on our “three Gs” policy, we undertakean ongoing failure modes and effects
analysis (FMEA) process to make
improvements at the point of failure or error
origin. Training programs also aim to improve
employees’ mindsets related to quality.

Do

Seeking
quality improvements
with
the

PDCA cycle

Built-in high reliability
In order to ensure we get the bestout of our crystal, we use the FourMs (manpower, materials,
machines, and methods) toeliminate quality inconsistencies inour production processes.

Check

Analysis and evaluation to
support high precision
We proactively use state-of-the-art
analyzing equipment and simulators tocontinually improve our analysis
capabilities. As a result, reliable evaluation
is carried out at our testing unit, an
accredited testing laboratory recognizedwith the ISO/IEC 17025 standard.

inside of future.

International Reach
Our strong global network to meetcustomers’ needs

Employees receive long-service awards
at Suzhou NDKHead Office
Sales
R&D

Asia/Japan

Americas

EuropeProduction

Our international network is dispersed to ensure stable supply at all times, and includes multiple production facilities in Japan and aroundthe world. Naturally, it also incorporates distributors in major markets such as the United States, Europe, and fast-growing Asia. Our aim
is to meet customers’ demands by localizing our operations with staff who share those customers’ languages and cultures. This policy has
seen our business outside of Japan grow to the point where it accounts for approximately 80 percent of overall sales.

12inside of future.

Environmental Integrity
Leading the march towardsustainability■ Environmental Policies and Initiatives
As a global enterprise, the NDK Group’s corporate philosophy includes
the stipulation that we will “strive to conserve the earth’s environmentand carry out our social responsibilities,” and we are actively promoting
activities to aid this effort. Under our group-wide environmental
protection framework (see Fig. 1), we work proactively to build, maintain,
and improve an environmental management system.
■ Environmentally-Considerate Product Development
Aiming to reduce our environmental impact, we have identified detailed
challenges and solutions as part of a medium-term plan. Under this, we
are working to prevent global warming, reduce waste, manage chemical
substances, and prevent air and water pollution. In order to satisfy
society’s demands regarding environmental protection, including, among
other things, reducing carbon dioxide emissions, we have introduced
Green Crystal Technology™ (see Fig. 2) as part of our unique crystal
device development concept. To that end, we use state-of-the-art
technology as a means of promoting the development of smaller, lighter,more energy-efficient products and pursuing more comprehensive energy
efficiency and environmental performance over each product’s lifecycle.
Also, in order to realize carbon neutrality by 2050, NDK has set out to [1]improve power consumption efficiency through energy saving strategies,[2] transition to green energy sources, [3] visualize GHG emissions
throughout the supply chain, and [4] visualize the risks and opportunities
of climate change and the responses to them.

Employees participate in local street
cleaning activities

Growing “green curtains” at one of
our plants

Fig. 1. NDK’s Environmental Management Organization
Chief Executive Officer
Environmental Management General Manager
Environmental Management Site Manager
Global Environmental
Conservation Committee
Head Office Departmental Environmental
Action Managers Meeting

Internal Environmental Audit Team
Legal Manager

Environmental Management
Administrative Staff

Environmental Management
Operatives
Environmental Management
Departmental Manager
All employees

Departmental Environmental
Action Managers
incl. outsourced staff

Fig. 2. Green Crystal Technology™
Manufacturing— Environmentally friendly manufacturing

Optimization— Energy saving contributions through improved performance/efficiency

Reduction— Resource conservation through the making of compact/complex products

Environment— Elimination/reduction of substances producing environmental load
(as per each country’s legal requirements)

13

History of NDK1948 Founded as Nanbu Shoko Co., Ltd. in Nihonbashi, Chuo-ku, Tokyo

1994 Established production subsidiary Suzhou NDK Co., Ltd. in Suzhou, China

1949 Started crystal unit production and sales

Established sales subsidiary NDK Italy Srl. in Italy (Merged with NDK Europe Limited in 2014)1950 Changed the company’s name to Nihon Dempa Kogyo Co., Ltd.

Obtained ISO 9001 certification

Relocated principal place of business to Oyama-cho, Shibuya-ku, Tokyo

1954 Relocated to newly constructed Head Office and plant in Nishihara, Shibuya-ku, Tokyo
1959 Started crystal filter production

1995 Established sales subsidiary NDK ELECTRONICS (HK) LIMITED in Hong Kong
1998 Obtained QS 9000 certification
Listed NDK stock on the First Section of the Tokyo Stock Exchange

1960 Started crystal oscillator production

1999 Obtained ISO 14001 certification

1962 Started construction of Sayama Plant in Sayama City, Saitama

2002 Established production subsidiary NDK Crystal, Inc. in Illinois, U.S.A.

1963 Synthetic crystal facility completed at Sayama Plant; started mass production of synthetic(Merged with NDK Holdings USA, Inc. in 2016)

quartz crystals

Established NDK Holdings USA, Inc. in Illinois, U.S.A.

Crystal cutting facility completed at Sayama Plant

Established NRS Technologies Inc. in Hakodate City, Hokkaido

Began trading of NDK stock on the OTC market(Merged with Hakodate NDK Co., Ltd. in 2005)

1964 Assembly line completed at Sayama Plant
Opened Osaka Sales Office in Osaka City, Osaka (now Kansai Sales Office)1970 Established production affiliate Hawk Denshi Co., Ltd. in Niigata City, Niigata(Changed company's name to Niigata NDK Co., Ltd. in 2005. Dissolved the company in 2022)

Established sales subsidiary NDK Electronics Shanghai Co., Ltd. in Shanghai, China

2004 Opened Chitose Technical Center in Chitose City, Hokkaido
2005 Relocated Head Office functions to Sasazuka, Shibuya-ku, Tokyo
2008 Quality Assurance Laboratory obtained ISO/IEC 17025:2005 certification1975 Opened representative sales office in California, U.S.A.

Obtained approval as a specified exporter from Tokyo Customs

1976 Established subsidiary Furukawa NDK Co., Ltd. in Osaki City, Miyagi

Received an award from Minister of Economy, Trade and Industry for efforts to promote

1979 Established subsidiary ASIAN NDK CRYSTAL SDN. BHD. in Malaysia

international standardization

Established NDK America, Inc. in California, U.S.A., and dissolved representative sales office

1985 Completed main building at Sayama Plant
1986 Opened Chubu Sales Office in Okazaki City, Aichi

2009 Completed Laboratory ATOM, a new research facility, at Sayama Plant
Established Suzhou NDK Trading Co., Ltd. in Suzhou, China

2010 NDK became the first company in Japan to adopt IFRS

Established production subsidiary Malaysian Quartz Crystal Sdn. Bhd. in Malaysia (now NDK2014 Obtained ISO 13485 certification

QUARTZ (M) SDN. BHD.)

2015 Relocated Head Office functions to Sasazuka, Shibuya-ku, Tokyo

Completed construction of new facilities at Sayama Plant

1988 Established NDK Electronics Singapore Pte. Ltd. (now NDK Crystal Asia, Pte. Ltd.) in Singapore
Established sales subsidiary NDK Europe Limited in the U.K.

1989 Established production subsidiary Hakodate NDK Co., Ltd. in Hakodate City, Hokkaido
1990 Relocated Head Office functions to Nishi-Shinjuku, Shinjuku-ku, Tokyo
Listed NDK stock on the Second Section of the Tokyo Stock Exchange(within the same area before relocation)

2019 Established Suzhou NDK Co., Ltd., a subsidiary in Suzhou, China (factory relocation)2020 Established NDK SAW Devices Co., Ltd., a subsidiary in Hakodate, Hokkaido
Sold 51% of the Company’s interest in subsidiary NDK SAW Devices Co., Ltd.,NDK SAW Devices
reclassified as an affiliated company

2022 Transited to the Prime Market from the 1st Section of the Tokyo Stock Exchange.

Merkmal Keio Sasazuka Bldg., 1-47-1 Sasazuka, Shibuya-ku, Tokyo 151-8569, Japan
TEL: +81-(0)3-5453-6711 FAX: +81-(0)3-5453-6733
https://www.ndk.com/