Kyocera’s Strategic Shift: What It Means for DPi and the Future of Inkjet Technology

Kyocera, a long-standing technology partner in DPi’s advanced inkjet printheads, is making a bold strategic move by divesting approximately 10% of its consolidated revenue—valued at JPY200 billion (US$1.27 billion)—by the end of fiscal year 2025 (April 2025–March 2026). This restructuring comes as the company seeks to enhance profitability and sharpen its focus on core business areas, including semiconductor materials and high-performance electronics.

Kyocera’s President, Hideo Tanimoto, revealed to Nikkei Asia that the company plans to sell off non-core business units with weaker profit potential during fiscal year 2025. While the specific assets set for divestiture remain undisclosed, the process will take place in phases and may include factory assets.

Originally a ceramic components manufacturer, Kyocera has since expanded into 15 business segments, including electronic components, communication devices, medical equipment, power tools, multifunction printers, and industrial cutting tools. At DPi, we rely on Kyocera’s cutting-edge inkjet printhead technology to power our high-performance printing solutions, making their strategic moves highly relevant to our industry.

Declining Profitability and Market Shifts

Kyocera’s operating profit has steadily declined over the past three years, with a 14% year-over-year drop in fiscal year 2022, followed by a 28% decline in fiscal year 2023. For fiscal year 2024, the company forecasts another 27% decrease, bringing projected operating profit down to JPY68 billion (US$431 million).

This figure represents a significant reduction from Kyocera’s peak operating profit of JPY148.9 billion (US$944 million) in fiscal year 2021—a 54% decline over three years. The downturn is attributed to weakening margins in key sectors, including automotive electronics and semiconductor-related operations.

As Kyocera shifts its focus, DPi remains committed to leveraging their technology while continuing to develop innovative inkjet solutions that meet the evolving needs of our customers.

Investing in the Future: Kyocera’s Semiconductor Strategy

Despite divestitures, Kyocera is ramping up investment in high-growth areas, with a JPY68 billion (US$431 million) plan to establish a new semiconductor component manufacturing facility in Isahaya City, Nagasaki Prefecture. This will be Kyocera’s first domestic plant in two decades, set to begin operations by fiscal year 2026.

The factory will focus on ceramic components for semiconductor manufacturing and advanced packaging materials for AI and 5G applications—areas expected to see significant growth in the coming years. The location was strategically chosen for its strong logistics infrastructure and skilled workforce specializing in semiconductor-related fields.

Kyocera’s investment is part of a broader JPY900 billion (US$5.71 billion) three-year growth strategy aimed at strengthening its semiconductor business. By fiscal year 2028, the company aims to double the revenue of its core components division to JPY1 trillion (US$6.34 billion), capitalizing on the increasing global demand for advanced semiconductor materials.

What This Means for DPi and Our Customers

As Kyocera focuses more on high-tech semiconductor components, their advancements will likely influence future developments in inkjet technology—an area where DPi continuously innovates. We remain committed to delivering the highest-quality printing solutions, leveraging Kyocera’s industry-leading printhead technology while adapting to market shifts.

Kyocera’s restructuring highlights the increasing need for businesses to refine their focus, optimize profitability, and invest in forward-thinking technologies. At DPi, we see this as an opportunity to strengthen our position in the inkjet printing space, ensuring we provide cutting-edge solutions to meet the evolving demands of our customers.

We will continue monitoring Kyocera’s strategic changes and assess how they may impact the inkjet printing industry. If you have any questions about how DPi’s solutions can support your business, reach out to our team today.