Japanese electronic components maker Nidec Corp. said on Wednesday its first-quarter operating profit jumped 60% to 44.6 billion yen ($406 million), helped by a rebound in demand for motors for electric vehicles (EVs) and home appliances.
Nidec, better known for producing electric motors for computer hard drives and smartphones, is trying to capture about a third of an emerging market for energy-saving EV motors known as e-axles. Demand for those is widely expected to increase 10 times over the next decade.
As it expands into auto parts, Nidec on Monday said it had agreed to consider a joint venture with Taiwan's Hon Hai Technology Group to develop EV motors. The companies said in a news release they would aim to establish the venture in 2022, helping Nidec expand into new markets and ensuring a stable supply of motors for Hon Hai.