TOKYO Epson Toyocom Corp., formed through the integration of the quartz device business of Seiko Epson Corp. (Epson) and Toyo Communication Equipment Co., Ltd. (Toyocom), will begin operations on Oct. 1, aiming to be the largest global supplier of quartz crystals and oscillators.
Both Japanese companies announced the merger of their business last November. Epson, the third-largest supplier of quartz devices in Japan, has a portfolio mainly for digital consumer products such as digital still cameras and watches. Toyocom, the fourth-largest supplier, gears its quartz devices mainly for industrial use such as backbone systems.
Both companies’ products complement each other, with the new company able to offer one-stop-service for all quartz devices, said Takeo Kagami, president of Toyocom, who will become president of Epson Toyocom.
The companies' combined quartz device sales in fiscal 2004 amounted to 84 billion yen (about $743 million), roughly 25 percent of the global market estimated to be 300 to 350 billion yen ($2.7 billion to $3 billion).
Japanese manufacturers supply 70 percent of quartz devices in the world, Kagami noted.
"We are going to expand the business to 100 billion yen (about $885 million) in fiscal 2007," said Kagami. But the company plans to expand sales not only through existing products but also in new markets.
Epson Toyocom will have three categories of quartz-based devices: timing, sensing and optical devices. The company intends to differentiate its quartz business by offering a wide range of products in each category and also by offering integrated solutions spanning the three categories. Because Epson Toyocom can use Epson's intellectual property even outside of quartz technology, the company expects this to help it competitively.
Epson Toyocom plans to announce the first products arising from the merger next week.