January 9, 2025 /SemiMedia/ — Kyocera intends to divest non-core businesses with total sales of approximately $1.3 billion to streamline its operations in response to weak demand for automotive electronic components and other products.

Company President Hideo Tanimoto stated that these low-growth potential businesses are expected to be sold by the fiscal year ending March 2026, without specifying which areas would be affected. He emphasized a focus on profitability over sales, with divested businesses accounting for 10% of the company's total revenue.

Kyocera forecasts a 30% decline in consolidated net profit to ¥71 billion for the fiscal year ending March 2025, marking the third consecutive year of profit contraction due to underperformance in automotive capacitor and semiconductor packaging segments. In October 2024, the company announced plans to classify its operations into core and non-core businesses and gradually withdraw from some non-core areas.

To support growth, Kyocera will invest ¥68 billion in a new factory in Nagasaki Prefecture to manufacture components for semiconductor-related applications. Tanimoto noted, “In recent years, every business area requires greater investment. If we fail to focus on specific areas, we will not achieve success.”