April 29, 2025 /SemiMedia/ — Japanese electronics component manufacturer TDK has issued a weaker-than-expected earnings forecast, highlighting the mounting pressure global trade disputes are placing on the semiconductor-related supply chain, particularly in the automotive and smartphone sectors.

For the first time, TDK presented a forecast range instead of a fixed figure, citing growing uncertainty tied to U.S. trade policy. For the fiscal year ending March 2026, the company projects revenue between ¥2.12 trillion and ¥2.2 trillion (approximately $14.8 billion), with operating profit ranging from ¥180 billion to ¥225 billion.

CEO Noboru Saito said at the earnings briefing that the shifting stance of the U.S. government on tariffs has clouded the global economic outlook, forecasting a 2% decline in smartphone demand and a 3% drop in vehicle production. The company views the lower end of its guidance as a scenario in which escalating tariffs suppress consumer spending and broader market growth.

TDK supplies critical passive components, lithium-ion batteries, and sensors to major players in the automotive and mobile industries. Its cautious guidance reflects growing concern across the semiconductor ecosystem over prolonged trade friction and currency volatility.

While analysts expect a 10% decline in operating profit due to yen appreciation and macroeconomic headwinds, some maintain that TDK’s core businesses remain resilient. Demand for batteries and high-performance components remains robust, and profit growth may still be achievable on a constant currency basis.