Business for Hirose Electric Co., Ltd. has started to expand steadily, matching the overall market recovery, which the novel coronavirus disease (COVID-19) pandemic has severely smashed during its onset in 2020.
The company’s consolidated results for Q1 (April to June 2021 period) for FY2022 showed increased in sales in various fields, including for automobiles, reaching record quarter highs. Hirose Electric has also revised upward its full-year earnings forecast for FY2022.
The company will continue to promote expansion in three business pillars, namely automotive; industrial and infrastructure; and smartphone/consumer, which will lift its connector business on a mid- to long-term perspective.
Takashi Ishida, Deputy General Manager, Global Marketing Department, Sales & Marketing Group, says, “We will continue to propose new connector products to customers, mainly for the three pillars, aiming for stable growth.”
Hirose Electric will amplify the sales potentials of FPCs and FFCs as well as board-to-board connectors, which are priority products, in the consumer area fields. For FPC and FFC connectors, it will emphasize One Action FH and will propose FH72, which has 0.3mm pitch and 0.9mm height. The One Action FPC and FFC connectors of the company has easy to insert but difficult to disconnect characteristics. Inquiries on the products are increasing.
For wearable devices, the company will promote sales expansion of the backflip vertical contact type FH58, which has 0.2mm pitch, 0.9mm height, and 3.1mm depth.
The company has developed the ZH05 board-to-wire connector for automotive use and comes with a structure that prevents electric shock. It is suitable for use as internal connections in an electric vehicle. In addition to its automotive-grade heat resistance of 125˚C and high vibration resistance, it comes equipped with an electric shock protection structure that can prevent short circuits caused by foreign objects and electric shock to auto mechanics. The company will promote sales expansion as a connector suitable for the use inside an automotive battery.
For industrial machines, the company has developed the waterproof round-shape plastic connector BH12 Series suitable for the battery connection of electrically power-assisted bicycles (E-Bikes). The connector can deal with a large current of 20A, although it is small with a total length of 36mm when mated. It meets miniaturization requirements and comes with improved workability of internal connectors inside an E-Bike assist unit.
The company will build a new factory at its consolidated subsidiary, Koriyama Hirose Electric Co., Ltd. (Fukushima Prefecture), to strengthen and expand manufacturing capabilities and improve safety and convenience. Planned completion and relocation of the factory is in 2023.
Sales of the company in the first quarter of this year have increased by 40.3 percent year-on-year up to ¥38.442 billion (US$349.2 million), which is significantly higher than the full-year average for FY2020.
By applications, sales for automobiles have increased significantly corresponding to the recovery of the automobile production in Japan and overseas. In addition, consumer-related products for wearable devices and home appliances have performed well, including those for remote work and distance learning setups. For industrial machinery, the recovery of the FA-related market is driving the demand.