TOKYO, Feb 2 - Japan-based components maker TDK said on Monday it is being affected by Chinese export controls on rare earths and has begun steps to broaden its procurement base.
The export measures, announced last month, targeted dual-use items that can serve military applications and included rare earths among the listed goods. TDK said the restrictions have created significant pressure on its materials sourcing.
Company statement on procurement
At an earnings briefing, Chief Financial Officer Tetsuji Yamanishi said: "Procurement of materials has reached an extremely difficult stage." He clarified that the effects were not new to this January but began last year, and added that production has been maintained so far by relying on materials the company had stockpiled.
Longer-term responses
Yamanishi outlined two parallel responses the company is pursuing. First, he said the company must diversify procurement sources over the long term and is making various advances toward that goal. Second, TDK is developing technology aimed at producing magnets that either do not use rare earths or use them as sparingly as possible.
The company did not provide additional timing or specific suppliers in relation to diversification efforts during the briefing. It also did not quantify the size of the stockpiles that have sustained current production levels.
External evaluation note
The article also noted that automated stock-screening tools evaluate TDK's listing 6762 using numerous financial metrics to assess fundamentals, momentum, and valuation. Those evaluations aim to identify opportunities by scanning a wide universe of companies with systematic criteria.
Contextual summary
TDK reports immediate sourcing strain due to Chinese export restrictions on rare earths, is using existing inventories to keep factories running, and is advancing both supplier diversification and technological efforts to reduce reliance on rare earth elements in its products.