Japanese Companies Competing Globally: What are MinebeaMitsumi's Strengths? The "INTEGRATION" Strategy Supporting a 60% Global Market Share in Miniature Bearings

Japanese Companies Competing Globally series.

The company we are focusing on this time is MinebeaMitsumi.

Even if you have heard the company name, many people may not be able to immediately explain what kind of products they make.

Miniature bearings.

Small motors.

Analog semiconductors.

Sensors.

Connectors.

Actuators for cameras.

Automotive door handles and lock components.

MinebeaMitsumi manufactures precision components that support movement, rotation, power, communication, and sensing inside finished products.

In particular, for miniature and small-diameter ball bearings with an outer diameter of 22 millimeters or less, the company estimates it holds a global market share of over 60%.

They hold a 90% global market share in pivot assemblies for HDDs and 80% in protection ICs for 1-cell lithium-ion batteries.

For the fiscal year ending March 2026, consolidated net sales were 1.6643 trillion yen, and operating income was 103.9 billion yen. The company has 134 production and R&D bases in 23 countries around the world, with approximately 81,000 employees.

If I were to describe the strength of MinebeaMitsumi in one phrase,

it is not a company that makes small parts, but a company that creates great value by combining small, world-leading products

I think.

What kind of company is MinebeaMitsumi?

MinebeaMitsumi's business is broadly divided into four categories.

Precision Technologies, which handles bearings and aircraft components.

Motor, Lighting & Sensing, which handles motors, sensors, lighting, and more.

Semiconductors & Electronics, which handles semiconductors, connectors, power supplies, and mechanical components.

Access Solutions, which handles automotive door latches, door handles, key systems, and more.

The products are incorporated into automobiles, aircraft, data centers, smartphones, home appliances, medical equipment, robots, and housing equipment.

General consumers do not often see the MinebeaMitsumi company name.

Even so, inside the products, they perform important functions such as:

Making rotation smooth.

Moving motors accurately.

Controlling batteries safely.

Measuring pressure and weight.

Opening and closing doors.

Connecting signals and power.

These are the important functions they perform.

What is a bearing?

A bearing is a component that supports a rotating shaft and reduces friction.

By attaching bearings to the shafts of motors and fans, they rotate smoothly, suppressing vibration, noise, and energy loss.

Although the bearing itself is a small metal part, if its precision is low, it affects the movement of the finished product.

Rotation becomes unstable.

Noise increases.

Power consumption increases.

The lifespan becomes shorter.

It cannot withstand high-speed rotation.

Therefore, the balls, inner rings, and outer rings must be machined with extremely high precision, and even the slightest error must be managed.

MinebeaMitsumi has developed a mass-producible steel ball bearing with an outer diameter of 1.5 millimeters, which has been certified by Guinness World Records as the world's smallest.

What customers want is not the bearing itself.

They want to make motors run quietly.

They want to make products more compact.

They want to reduce power consumption.

They want to prevent breakdowns.

They want to use them stably for a long period of time.

What MinebeaMitsumi provides is not metal rings, but rather the functionality to operate finished products efficiently and stably.

Founded as Japan's first manufacturer specializing in miniature bearings

The history of MinebeaMitsumi began in 1951 with the establishment of "Nippon Miniature Bearing Co., Ltd." in Itabashi Ward, Tokyo.

It was Japan's first manufacturer specializing in miniature bearings.

In 1960, it began a sales partnership with a U.S. company, and in 1962, it dispatched resident representatives to develop the U.S. market.

In 1967, it expanded into Europe, and in 1968, it established a local subsidiary in Los Angeles.

It did not grow only in the domestic market before expanding overseas.

Within about 10 years of its founding, it already had the global market in its sights.

Since then, it has expanded the ultra-precision machining technology cultivated through bearings into motors, sensors, aircraft parts, and more.

Furthermore, by utilizing M&A, it has expanded its business into electronic components, semiconductors, automotive parts, communications, and software.

Why is MinebeaMitsumi strong globally?

The reason MinebeaMitsumi has been able to capture a 60% global market share in miniature and small-diameter ball bearings is not just due to machining precision.

It is believed there are six major strengths.

1. Focused on small parts within a massive market

The overall bearing market also includes large products used in heavy machinery, railways, and wind power generation.

MinebeaMitsumi's strength lies in miniature and small-diameter ball bearings with an outer diameter of 22 millimeters or less.

Each one is a small part.

However, their applications are vast.

Automobiles.

Home appliances.

Office equipment.

Medical equipment.

Robots.

Industrial machinery.

Cooling fans for data centers.

As product miniaturization and automation progress, the need for small, high-precision bearings increases.

MinebeaMitsumi did not try to capture the entire massive market.

They focused on small but essential parts that are repeatedly used within massive industries.

2. Achieved both ultra-precision machining and mass production

In precision parts, generally, the higher the quality, the longer it takes to produce.

Conversely, prioritizing mass production tends to increase variability between products.

MinebeaMitsumi has built a system that achieves both sub-micron precision machining and mass production of hundreds of millions of units per month.

They possess a vertically integrated production system that unifies everything from development to parts processing and assembly, and they deploy unique production lines to factories around the world.

There are companies that can make a single high-quality prototype.

There are also companies that can produce large quantities of inexpensive parts.

However, supplying extremely high-precision parts in large quantities and stably to the entire world requires different capabilities.

It is not just technical prowess, but also:

Production equipment.

Process design.

Quality control.

Material procurement.

Inventory management.

And personnel training.

A system that includes all of these supports their global market share.

3. Balancing standard products and custom-made solutions

MinebeaMitsumi's ball bearings have a lineup of over 8,500 types with an outer diameter of 35 millimeters or less.

At the same time, they also respond to custom-made proposals by changing materials, lubricants, precision, durability, etc., according to the application.

If everything were made from scratch for each customer, costs and lead times would increase.

However, standard products alone cannot handle special usage environments.

Therefore,

We standardize parts that can be shared.

We individually adjust parts that affect performance.

This is the method we use.

For customers, this means they can choose parts that fit their own products.

For MinebeaMitsumi, it allows us to maintain cost competitiveness through mass production.

By separating individual customization from mass production, we make both possible.

4. Expanding one technology into multiple products

What we acquired through bearings is not just the technology to make bearings.

Precisely machining small metal parts.

Polishing surfaces.

Ensuring consistent quality even when producing in large quantities.

Suppressing friction and vibration.

Precisely assembling multiple parts.

These technologies can also be applied to motors, sensors, aircraft parts, and camera components.

MinebeaMitsumi applies the ultra-precision machining technology cultivated through bearings to other products, creating some of the world's smallest and thinnest components.

We did not discard past technologies every time we started a new business.

We transferred the capabilities gained by digging deep into bearings to other products.

5. Not just gathering businesses through M&A, but 'INTEGRATING' them

In 2017, Minebea made Mitsumi Electric a wholly owned subsidiary and changed its company name to MinebeaMitsumi.

Since then, we have continued to add companies specializing in semiconductors, connectors, automotive parts, and aircraft components to the group.

However, the goal is not simply to increase the scale of sales.

The company calls the combination of different technologies and products "Integrate" (Sou-ai).

It is a coined term that means "to combine together," rather than just "comprehensive."

Bearings and motors.

Sensors and wireless communication.

Mechanical parts and semiconductors.

Door components and software.

By combining each of these, they create products that have higher value than individual parts alone.

Simply increasing the number of products through M&A can potentially complicate management.

What is important is how to combine the technologies, customers, and production facilities of the acquired companies with existing businesses.

MinebeaMitsumi uses M&A not for diversification, but as a means to strengthen its existing advantages.

6. Mass-supplying the same quality worldwide

MinebeaMitsumi has 134 production and R&D bases in 23 countries around the world.

For small parts, the unit price alone is not very high.

Therefore, transportation costs, production costs, and yield rates significantly affect profits.

Furthermore, if even one bearing or motor is missing, the customer may not be able to complete their finished product.

Even if performance is high, if the required quantity cannot be delivered on time, it will not be adopted.

MinebeaMitsumi entered overseas markets in the 1960s and has since expanded its production bases to Thailand, the Philippines, China, Cambodia, Europe, the United States, and elsewhere.

Not just technology,

but the ability to manufacture anywhere in the world.

The ability to produce in large quantities.

The ability to produce with consistent quality.

The ability to deliver to where it is needed.

This supply capability supports our high market share.

'Eight Spears' to avoid dependence on a single market

MinebeaMitsumi refers to its product groups, where it can leverage its strengths and which will not easily disappear even with technological innovation, as its 'Eight Spears'.

Bearings.

Analog semiconductors.

Motors.

Access products.

Sensors.

Connectors and switches.

Power supplies.

Wireless, communication, and software.

The concept is to cultivate niche areas within large markets as individual spears.

We do not rely on a single massive product.

We possess multiple world-class products to adapt to changes in industries and customers.

If the smartphone market is weak, automobiles and aircraft provide support.

If the automotive sector is weak, data centers and industrial equipment grow.

Rather than expanding businesses unrelatedly, we are diversified across multiple niche markets that share common technologies.

AI data centers are becoming a new growth market

The spread of generative AI is generating massive amounts of power and heat in data centers.

Cooling is essential to keep servers running stably.

MinebeaMitsumi provides not only large fan motors for air cooling, but also pump motors for liquid cooling, pressure sensors, water leak sensors, flow sensors, optical connectors, and power ICs.

This is where the strength of 'Integrate' lies.

For a company that only makes fan motors, the shift from air cooling to liquid cooling might be a threat.

However, MinebeaMitsumi has:

Motors.

Bearings.

Sensors.

Semiconductors.

Connectors.

Pumps.

It possesses all of these.

Even if cooling methods change, it can propose other necessary components.

Instead of protecting the demand for a single product, it looks at the entire challenge the customer wants to solve: 'safely cooling servers.'

This is a strategy that can only be taken by a company with multiple technologies.

Even with 1.6 trillion yen in sales, it does not rely on its 60% global market share

For the fiscal year ending March 2026, net sales increased by 9.3% year-on-year to 1.6643 trillion yen, and operating profit increased by 10.1% to 103.9 billion yen.

Demand for ball bearings remained steady for data center servers and aircraft.

Meanwhile, the company's overall operating profit margin is 6.2%.

Even with a product that holds a 60% global market share, the entire business does not automatically become highly profitable.

Improving the profitability of acquired businesses.

Creating synergies between products.

Managing a large number of locations and employees.

Responding to raw material costs, exchange rates, and tariffs.

As a business expands, the difficulty of management also increases.

The company has set a target of 1.9 trillion yen in sales and 168 billion yen in operating profit for the fiscal year ending March 2029, assuming no large-scale M&A. If large-scale M&A occurs, they are aiming for 2.5 trillion yen in sales and 250 billion yen in operating profit.

The next financial results for the first quarter of the fiscal year ending March 2027 are scheduled to be announced on August 5, 2026.

MinebeaMitsumi also has weaknesses.

MinebeaMitsumi provides products to a wide range of markets affected by economic fluctuations, such as PCs, information and communications, automobiles, aircraft, and home appliances.

If demand drops sharply, factory utilization rates will fall, and the strength of mass production could turn into a burden on profits.

Competition with low-cost manufacturers, exchange rates, raw material prices, tariffs, and geopolitical risks also affect performance.

Furthermore, M&A carries the risk that expected profits and synergies may not be realized.

If corporate culture, systems, and production structures cannot be integrated, it may end up just being an increase in the number of businesses.

When considering the future of MinebeaMitsumi, rather than how many companies they acquire,

whether they can combine the acquired technologies,

whether they can increase profit margins,

and whether they can create products that could not have been made by a single company

will be important.

6 Things Small and Medium-Sized Enterprises Can Learn from MinebeaMitsumi

1. Look for work that is small but repeatedly needed

Even if the unit price is low, if it is a part used in large quantities across products worldwide, it becomes a large market.

It is not about the size of the product, but rather,

how many companies need it,

how many units one company uses,

and how many years it will be used continuously,

that is important to look at.

2. Do not consider quality and mass production as separate things

Making small quantities of high-quality items can sometimes make it difficult to expand the market.

It is necessary to standardize work procedures, tools, training, and inspections to create a system that can reproduce high-quality states.

3. Separate individual customization from standardization

Address customer requests individually.

However, standardize parts, materials, processes, and systems as much as possible.

Not making everything custom-made leads to a balance between profit and quality.

4. Combine existing technologies for new businesses

Even without creating entirely new technologies from scratch,

existing products,

customer data,

and sales networks.

Operational know-how.

Technology from external companies.

By combining these, you can create new value.

5. Clarify the purpose of M&A and partnerships

Do not make increasing the number of companies or businesses the goal itself.

Acquire missing technology.

Enter new customer bases.

Increase production capacity.

Combine with existing products.

It is necessary to clarify what you are partnering to strengthen.

6. Look at customer challenges, not specific products

If you only sell cooling fans, changes in cooling methods become a threat.

If you look at the challenge of 'safely cooling servers,' other proposals such as pumps, sensors, power supplies, and connectors become possible.

It is important to think about business centered on the results the customer wants to achieve, rather than the product itself.

Summary: MinebeaMitsumi grew by combining small world-leading technologies

MinebeaMitsumi began as Japan's first manufacturer specializing in miniature bearings.

Focus on the market for outer diameters of 22 millimeters or less.

Achieve both ultra-precision machining and mass production.

Expand into the US and Europe from the early stages of founding.

Apply bearing technology to motors and aircraft parts.

Adding semiconductors, sensors, connectors, and automotive parts through M&A.

'INTEGRATING' different technologies.

Cultivating multiple niche top products as 'eight spears'.

Through this accumulation, the company has grown into a global enterprise with sales exceeding 1.6 trillion yen.

To compete globally, there is no need to build massive finished products.

There is no need to become a household brand name either.

Become the world's best in one small function.

Expand that technology to other products.

Further combine different strengths.

The biggest reason MinebeaMitsumi is strong globally is,

not just because it holds a 60% global market share in bearings.

It is because it possesses multiple world-leading small components and can combine them to advance into the next market.

Do not let small world-leading technologies exist in isolation.

That is MinebeaMitsumi's 'INTEGRATION' strategy.

In this note, I take up one Japanese company at a time that is competing globally and clearly organize its growth strategy, overseas expansion, and competitive advantages.

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