How Does Kyocera Company Work?

Kyocera's operations are structured into three primary reporting segments: Core Components, Electronic Components, and Solutions. These segments reflect the breadth of its product portfolio and market reach.

The company's unique value proposition stems from its deep expertise in ceramic-based solutions. This allows for the development of highly reliable and high-performance components, offering customers superior durability and market differentiation.

The Core Components segment includes critical semiconductor packages, where the company holds a dominant market share of 75-80%. The Electronic Components segment provides essential items like capacitors and connectors for various electronic devices.

The Solutions Business encompasses a wide array of offerings, including office equipment, telecommunications systems, solar power solutions, and medical products, showcasing the company's broad market engagement.

Kyocera plans to divest about 10% of its consolidated revenue, approximately JPY 200 billion (US$1.27 billion), by the end of fiscal year 2025. This move targets non-core businesses with weaker profit prospects, allowing for resource concentration on more lucrative segments.

A substantial investment of JPY 68 billion (US$431 million) is being made in a new semiconductor factory in Nagasaki Prefecture. This facility, expected to operate by fiscal year 2026, will focus on ceramic components for semiconductor manufacturing equipment and advanced packaging materials for AI and 5G.

Kyocera's competitive edge is significantly derived from its technological prowess in advanced ceramics. The company holds a dominant market share in ceramic packages for semiconductors, a testament to its innovation and manufacturing capabilities.

The company demonstrates a strong commitment to innovation through continuous R&D investment, exceeding ¥100 billion in 2024. This focus ensures Kyocera remains at the forefront of technological advancements in its key business areas.

Kyocera is a key player in the global electrical ceramics market, competing with major entities like Murata Manufacturing and TDK Corp. The company holds a dominant position, estimated at 75-80% market share, in ceramic packages crucial for semiconductors. While its share in other segments like MLCCs and copiers is smaller, its continuous innovation, particularly in Document Solutions, contributes to sustained customer loyalty and a broad global reach.

The company faces significant risks, including profit declines attributed to sluggish demand in semiconductor and communication markets, leading to lower utilization rates and increased costs. Geopolitical factors, tariff policies, and currency fluctuations, such as a stronger yen against the U.S. dollar, also negatively impact sales revenue and profitability.

Kyocera is implementing a JPY 900 billion (US$5.71 billion) three-year investment plan to bolster its semiconductor business. The company aims to double its core components division's revenue to JPY 1 trillion by fiscal year 2028. Strategic divestments of non-core assets and increased investment in high-growth areas like AI and 5G are central to this strategy.

Fiscal year 2025 is designated for structural reforms to enhance profitability through efficiency improvements and a pivot towards higher-margin products. Kyocera is committed to sustainability, targeting net-zero emissions by 2035 and expanding its renewable energy solutions. Despite a projected decrease in consolidated sales revenue to JPY 1,900,000 million for the year ending March 31, 2026, the company is focused on long-term growth driven by its advanced materials technology.