Precision Innovation

Precision Innovation is a growth engine for company-wide growth and profit generation. It is the segment from which we expect the highest sales and profit growth in Mid-Term Business Plan Phase 1 (2026-2028). The segment comprises Inkjet Solutions, which is centered on printheads; Microdevices, which focuses on timing devices; and the Epson Atmix business, which boasts the top share in high-performance metal materials.

Epson's inkjets employ a simple technology that ejects the required amount of material at the required locations, without using heat. Epson has refined this technology over many years and has now expanded its applications beyond the realm of home printers and into a wide range of industrial fields, including signage, digital textile printing, electronic circuit board wiring, display manufacturing, coating of precision parts, medical care, and solar cell manufacturing. Amid increasingly severe social issues including energy constraints, environmental regulations, soaring material prices, and labor shortages, there is an accelerating shift toward inkjet technology that delivers resource conservation, lower environmental impact, and high efficiency. Epson's printheads underpin these changes, driving application development and technological innovation by improving ejection accuracy and productivity and expanding compatible materials. We are also working to create an environment that makes it easier for customers to adopt our products by providing peripheral systems and solutions. Leveraging our strengths in industry-leading production scale and development resources, we will create new industries and markets through co-creation with partner companies and customers around the world. By further evolving our philosophy of efficient, compact, and precise, we will contribute to building a sustainable society and shaping the future of industry.

Major products

In response to rising demand for power driven by the rapid expansion of AI and data infrastructure and technological advancements, as well as the need to decarbonize, we have worked to provide accurate, compact devices that operate on low power. For these three performance requirements, which generally exist in a trade-off relationship, Epson has leveraged its strengths in both crystal manufacturing technology and semiconductor logic design technology, deriving optimal solutions through proprietary integrated design that fuses these technologies. We have long implemented these solutions in society in the form of high-frequency oscillators and high-precision timing devices. The importance of precise timing signals that support high-capacity, high-speed computing and communications is expected to grow further in expanding sectors such as data centers, high-speed communications infrastructure, AI, and mobility applications, including autonomous driving.

Recognizing this as a significant opportunity, we will continue to provide devices that underpin technological advancement while accelerating the development of next-generation devices that leverage our proprietary technologies. As one of Epson's growth engines, the device business will also enhance its capabilities and improve manufacturing efficiency through strategic growth investments. This will allow us to further develop and expand business.

Major products

Epson Atmix operates an integrated business encompassing the development, manufacturing and sale of high-performance metal powder products. As part of the Precision Innovation domain, a key growth engine for Epson, it plays a vital role in supporting company-wide growth and profitability. Production operations are based at the Head Office Plant and Kita-Inter Plant in Hachinohe City, Aomori Prefecture. In June 2025, a metal refining plant was completed at the Kita-Inter No.2 Plant, the company's third production site. We continue to make strategic investments, including the decision to commence construction of a new SWAP^®1 plant² at the same site in September 2026. We are also advancing a growth strategy based on our technological strengths to reliably capture growing demand for fine alloy powders. In particular, amorphous alloy metal powders produced using our proprietary SWAP^® process are high-performance powder materials that meet societal needs for energy savings and miniaturization associated with increasing operating frequencies. Leveraging these strengths, we are expanding our business in growth markets, including automotive devices and power supploes for AI servers.

Through these initiatives, we will strengthen our production capabilities and establish our technology development structurek in line with our growth strategy for target growth markets. By bringing to market high value-added products that capitalize on our technological strengths, we will contribute to societal solutions and achieve sustainable growth.

¹ The Spinning Water Atomization Process (SWAP^®) is Atmix's proprietary alloy powder manufacturing method for the mass production of amorphous alloys.

² Scheduled to commence operation in January 2028.

Major products

• Inkjet solution Epson contributes to various fields of industry by our technology and solution.
• Microdevices Epson contributes to the development of smart communities with crystal and semiconductor solutions.
• Epson Atmix Introducing Epson Atmix business.