In a bullish mood, Kaga Electronics bolsters EMS business with fresh M&As
- Kaga Electronics connects intently with customers, propelling its growth into a global trading firm serving the entire electronics supply chain
Country Business Reports interviews and articles by Discovery Reports
Spirited, cheerful and constantly eager to engage customers, Kaga Electronics founder and CEO Isao Tsukamoto maintains a keen sense for emerging trends – a skill he developed while roaming the bright, technology-packed streets of Akihabara in the 1960s selling variable electronic components to set makers. True enough, when wireless citizens band (CB) radios became a major communication tool particularly for truck drivers in the United States, Kaga Electronics was one of the largest suppliers of parts to CB radio manufacturers. The company also played a crucial role in supplying integrated circuits used in the iconic Space Invaders video game console in the late 1970s.
“When I started working, customers became my friends and through them, I learned about the electronics industry’s needs,” Tsukamoto says. “I was able to identify and benefit from these trends because I listened carefully to customers. When they open up about innovations, it usually leads to an order for parts. This philosophy of satisfying the demands of customers at all times inspired me to establish my own trading firm.”
That was more than 50 years ago, and to this day, Kaga Electronics connects intently with customers, propelling its growth into a global trading firm serving the entire electronics supply chain. Its one-stop support system covers consultation, design and development, component procurement, production, sales and after-sales service.
“Everything we do is for our customers,” Tsukamoto says. “As a result, our global network constantly evolves, and we are able to solve problems in every aspect of the business.”
Optimistic about the increasing demand for electronics manufacturing services (EMS) mostly driven by growth in the in-vehicle, air conditioning and medical equipment industries, the company is strengthening its EMS division. It acquired major device distributor Fujitsu Electronics and Pioneer’s manufacturing subsidiary, Towada Pioneer, to boost its technological capabilities. In addition, it enhanced its production and engineering capacities by building a new plant in Fukushima and a second plant in Thailand, and establishing joint ventures with production equipment manufacturers in China. These initiatives have bolstered the company’s local production that accommodates various customers’ needs, and have expanded its global EMS network to encompass 19 bases in 10 countries starting from Japan to China, Thailand, Malaysia, Indonesia, Vietnam, the Czech Republic, Turkey, Mexico and India.
Kaga Electronics works closely with customers. Tapping into its strength as an industry-leading trading company, it provides customers with just-in-time deliveries. Its flexible production systems can efficiently handle high-mix, low-volume lots including semi-finished and finished products.
“All our EMS bases showcase the Japanese standard of quality as we continue to leverage the expertise and negotiating ability we cultivated in Akihabara,” Tsukamoto says. “We are proud to be a behind-the-scenes partner. If a product does not exist, we will make it. We do not say ‘no’ to customers. We provide parts precisely where and when a client needs them.”
Responding to customers’ perpetually shifting needs coupled with revolutionary changes sweeping the world, Kaga Electronics acquires the latest technologies to provide the most optimal solutions. Across its four business domains – electronic parts and semiconductors, EMS, information equipment and new business – the company continues to uphold its customers’ progress while empowering employees to overcome challenges.
With more than 60 companies operating under its wing today and consolidated sales approaching 500 billion Japanese yen (HK$35.02 billion), Kaga Electronics is on track to reach 1 trillion yen in the medium to long term by enhancing its revenue base, stabilising its management fundamentals and creating new business.
“Driven by the exciting growth of our EMS business and our strategic merger and acquisition activities, we are charging ahead to become Japan’s No 1 corporate group in the industry and a competitive world-class electronics company,” Tsukamoto says.