Apple's (AAPL.US) supplier TDK is planning to introduce a new battery to stay ahead of the AI development curve.
1min read Apple's (AAPL.US) main supplier of iPhone batteries, TDK Corp., a well-known Japanese maker of electronic components, will this year launch an improved version of its most advanced product to help mobile devices keep pace with the growing power demands of built-in artificial intelligence.
TDK CEO Noboru Saito said the company plans to start mass production of its third-generation silicon anode batteries in late summer. Silicon batteries are more complex to make but carry more energy than traditional batteries and have been adopted by most major Chinese smartphone makers.
Noboru Saito sees further development for silicon batteries. "Our continuous investment in R&D is one of our business strengths," he said. "We plan to accelerate this momentum."
TDK's rivals LG Energy Solution and Samsung SDI also see the potential of silicon batteries, which both companies are developing for use in electric vehicles. Silicon anode suppliers for TDK and its subsidiary ATL, Group14 Technologies Inc., based in the U.S., have Porsche as a strategic investor and see electric vehicles as the next technological frontier after smartphones.
Group14 CEO Rick Luebbe said "almost all carmakers are considering silicon batteries." He said silicon batteries could be charged in five to seven minutes, compared with 40 minutes or more for existing graphite anode batteries.
Noboru Saito said TDK is investing in capacity and ongoing R&D. He sees the company's strength in its speed of mass production, as well as ATL's expertise in putting together various elements. Hideki Yasuda, an analyst at Toyo Securities, said TDK is currently the only company able to mass-produce silicon batteries, which is a big advantage for the company but not for its customers. "A component that can only be produced by one company raises concerns about supply shortages, which usually hinders the widespread adoption of the technology," he warned.
While TDK's silicon anode battery business is still small, Noboru Saito believes customers will see the value of the technology and growth will "come step by step."