TFTC Announcement concerning HDD Suspension Business

TDK Corporation (President: Shigenao Ishiguro) and its related subsidiaries had an inspection by Taiwan Fair Trade Commission (the “TFTC”) regarding our HDD suspension business. On November 11, 2020, the TFTC officially announced on its website that, pursuant to the Taiwan Fair Trade Act, it had imposed a surcharge on manufacturers of HDD suspensions, including TDK and its Thai subsidiary, relating to the HDD suspension business. Since TDK group fully cooperated in the TFTC’s inspections from an early stage, TDK group obtained immunity from the surcharges. Therefore, TDK and its Thai subsidiary are under no obligation to pay the surcharges that was announced by the TFTC.

Please note that the Japan Fair Trade Commission (“JFTC”) also investigated regarding our HDD suspension business and TDK had extended full cooperation to such investigation and TDK group were exempted from any surcharges and also had received no cease-and-desist order pursuant to an application for leniency (please see our press release on February 9, 2018).

TDK as well as all TDK companies have developed a compliance structure to oversee the entire TDK group with the aim of further reinforcing our compliance with the laws and regulation. Going forward, we will pursue these efforts with increased vigor and speed, and will strive to restore the trust of our customers and stakeholders.

TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately “Attracting Tomorrow.” It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK’s comprehensive, innovation-driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in automotive, industrial and consumer electronics, and information and communication technology. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2020, TDK posted total sales of USD 12.5 billion and employed about 107,000 people worldwide.