How Kyocera’s Restructure Could Impact the Inkjet Printhead Supply Chain
Kyocera Corporation recently announced a major restructuring initiative aimed at shoring up its profitability and refocusing on core businesses. The Japanese electronics and industrial giant plans to divest roughly 10% of its consolidated revenue – about ¥200 billion (US$1.27 billion) – by the end of fiscal 2025. This means Kyocera will shed certain non-core business units that have weak profit prospects, a move prompted by declining profits in segments like automotive electronics and semiconductor components. Over the past three years, Kyocera’s overall operating profit has dropped sharply (down 54% from its 2021 peak), with year-over-year declines of 14%, 28%, and an expected 27% in FY2024. President Hideo Tanimoto has indicated the company must “release unprofitable businesses” to concentrate resources on more profitable ventures. In practice, this restructuring will involve selling off or discontinuing select operations in phases through March 2026.
Kyocera’s portfolio is remarkably diverse – originally a ceramics producer, it has expanded into 15 distinct business segments, including electronic components, medical devices, cutting tools, solar energy, communications, and printing equipment. Given this breadth, the 10% divestiture could come from any number of units that Kyocera deems non-essential. Notably, the specific assets to be sold have not been publicly disclosed yet. Industry observers suspect underperforming areas (such as certain automotive and older semiconductor-related product lines) are prime targets for divestiture. The key question on the minds of those in the printing industry is: where does Kyocera’s inkjet printing division stand in this shake-up? And more importantly, how might these corporate moves ripple through the inkjet printhead supply chain?
Kyocera’s Inkjet Business Remains Core
Early signs point to Kyocera’s inkjet printing business being safe – in fact, central – amid the restructuring. The company and industry insiders have signaled that digital printing is considered a core, growth-oriented segment for Kyocera, not a candidate for cutbacks. Those familiar with Kyocera’s inkjet division report “no concern” over the divestiture plan, noting that inkjet is one of the company’s core and growing businesses. This confidence is backed by Kyocera’s recent market performance and public statements. In September 2024, Kyocera proudly announced it had become the market leader in high-speed cut-sheet inkjet production printing with 34.5% market share, thanks largely to the success of its TASKalfa Pro 15000c press (which led the market for three consecutive quarters). The TASKalfa Pro 15000c is a cut-sheet production inkjet printer that has gained traction especially in in-plant and corporate print centers, carving out a niche in applications like transactional printing and education (K-12) print departments. Such achievements underscore that Kyocera’s printing arm is not a struggling side-business, but rather a competitive and strategic part of its portfolio.
Kyocera’s TASKalfa Pro 15000c cut-sheet inkjet press (pictured) exemplifies the company’s strong commitment to the inkjet market. Kyocera has secured the No.1 position in U.S. shipments of production inkjet printers in its class, reflecting the inkjet division’s growth even as the company undergoes broader restructuring.
Top executives have been explicit that the Document Solutions and printing division will remain a cornerstone of Kyocera’s future. Norihiko Ina, a Managing Executive Officer at Kyocera, reaffirmed in a recent Q&A that “the MFP and printer business is positioned as Kyocera Group’s core” and that the company will concentrate resources there more than ever. Similarly, Kyocera issued statements “dismissing naysayers” and emphasizing that the printer business remains a “powerhouse” within the company. The document solutions segment (which encompasses office printers, production presses, and related software) accounts for over 20% of Kyocera’s total revenue and profit. Far from scaling it down, Kyocera plans to intensify investment in this segment – speeding up new product introductions and leveraging technologies like high-speed inkjet, eco-friendly features, and AI to drive growth. In short, Kyocera’s printing and inkjet unit is not being divested – it’s being doubled down on as a key pillar of the company’s strategy.
Evidence of this continued commitment can be seen in Kyocera’s ongoing product development. The company has been actively launching next-generation inkjet printheads and presses despite the corporate restructuring. For instance, Kyocera introduced a new 1200 dpi inkjet printhead with recirculating ink technology in time for the drupa 2024 exhibition. And in 2025, Kyocera is prominently showcasing its inkjet production technologies at industry events – it kicked off the year by securing the No.1 position in U.S. cut-sheet inkjet printer shipments (per IDC data) and was recognized as a “company to watch” at the Inkjet Summit. All of these signs point to an inkjet business that is robust and a focus of future growth, rather than a division on the chopping block.
Implications for the Inkjet Printhead Supply Chain
Kyocera is not only a printer OEM; it is also one of the world’s leading inkjet printhead manufacturers, supplying piezo printhead components to various other equipment makers. In the industrial and commercial printing arena, a relatively small number of specialized companies provide printhead technology to a wide range of printer OEMs and integrators. Kyocera’s printheads are considered mainstream, high-performance options alongside Fujifilm Dimatix’s StarFire/Samba series and offerings from a few others. These printheads are the critical “engines” of digital presses, used in everything from wide-format graphics printers and label presses to textile machines. Consequently, any strategic change at Kyocera has the potential to ripple through the entire inkjet supply chain – impacting not just Kyocera’s own devices, but also the many printers built by other manufacturers that rely on Kyocera heads. In fact, even print service providers are aware of this interdependency. One print shop owner noted that they “knew that other manufacturers use Kyocera printheads” inside their machines. This highlights a key point: Kyocera’s role as a component supplier means integrators (and by extension, end users) watch its corporate moves closely.
So, how might Kyocera’s business restructure affect inkjet users and integrators? On the whole, the news of Kyocera refocusing on core businesses bodes positively for printhead supply stability. Since the inkjet division is deemed core and is not being sold off, integrators using Kyocera printheads can be cautiously optimistic that their supply source will remain intact. The worst-case scenario – a key printhead supplier exiting the market – is not in play here, which is a relief given how disruptive that would be. In fact, the restructure could strengthen Kyocera’s printhead business in the long run: by shedding less profitable distractions, Kyocera can devote more attention and capital to its inkjet technology. The company’s plan to “reallocate management resources” to areas with growth potential suggests that the printhead unit may benefit from increased R&D funding, faster product development cycles, and potentially expanded manufacturing capacity to meet growing demand. For integrators and OEM partners, this could mean more advanced printhead models coming to market and a vendor that is financially healthier and more focused on their needs. Indeed, Kyocera’s recent introduction of new recirculating printheads with higher speeds and durability is a sign of continued innovation that partners can leverage.
Moreover, Kyocera’s commitment to its own inkjet presses (like the TASKalfa Pro series) can indirectly benefit third-party integrators who buy its heads. The reason is that by proving out its technology in commercial products and scaling up production, Kyocera gains experience and economies of scale that apply to the printheads supplied to others. A larger install base of Kyocera-equipped presses also means a robust ecosystem (inks, spares, expertise) that any integrator can tap into when using the same printhead platform. In essence, Kyocera’s success in end-use printing markets helps reinforce the viability of its printheads for everyone in the supply chain.
That said, there are a few considerations and potential ripple effects for printhead users to monitor:
Short-Term Transitions: As Kyocera executes its divestitures through 2025, there could be internal reorganization and resource shuffling. Large corporate changes sometimes introduce temporary uncertainties – for example, management attention might be stretched or certain budgets frozen during the transition. Inkjet integrators might experience slight delays in communications or decision-making as Kyocera’s teams adjust to the new corporate structure. However, given that inkjet is earmarked as core, Kyocera will likely shield this division from any major disruption. In fact, insiders have expressed confidence that it’s “business as usual” for the inkjet unit despite the broader company shake-up. Still, prudent partners will maintain close communication with Kyocera to get ahead of any minor hiccups during the restructuring period.
Supply Chain Resilience: The print industry recently learned hard lessons about supply chain fragility – for instance, global chip shortages in 2021–2022 caused delays in printhead driver electronics and other components. These events have made integrators more vigilant about their supply chains. Kyocera’s move to streamline operations could ultimately make it a leaner, more resilient supplier, but in the near term integrators are likely to validate their contingency plans. This could include dual-sourcing critical components or ensuring they have sufficient inventory of Kyocera heads and spare parts as a buffer. The good news is that no immediate supply disruption has been signaled; Kyocera’s printhead production is expected to continue uninterrupted. However, smart integrators will use this moment to review their risk management – for example, confirming that Kyocera has solid plans to maintain production capacity and support even as other units are divested.
Focus on Core vs. Broad Availability: One interesting dynamic to watch is how Kyocera balances its dual role as a printhead supplier and a printer manufacturer. By declaring the printer business a core focus, Kyocera is essentially both a partner to external integrators and a competitor in certain market segments. Some integrators might wonder if Kyocera’s heightened focus on its own printers could someday influence how it supplies components to others. For instance, will Kyocera continue to offer its latest, highest-performance printheads openly to OEM customers, or will it reserve certain innovations for its in-house devices first? There is precedent in the industry for both approaches. So far, Kyocera has maintained a fairly open stance – its newest heads (such as the 1200 dpi, recirculating models) are available to OEMs and not kept proprietary. As the company refines its strategy, integrators will hope Kyocera remains a reliable, impartial supplier and doesn’t tilt toward a closed ecosystem. Given the revenue and reputation Kyocera’s component business enjoys, it has strong incentive to keep those OEM relationships healthy. But this remains an area to observe; open dialogue between Kyocera and its inkjet partners will be key to aligning roadmaps and ensuring everyone benefits from the company’s innovations.
Market Competition and Alternatives: From a broader industry perspective, Kyocera’s reaffirmed commitment to inkjet will likely spur competitors to step up as well. Competing printhead manufacturers (Fujifilm Dimatix, Konica Minolta, Epson, Ricoh, Xaar, etc.) will be keenly aware that Kyocera is doubling down on print. Integrators who might have been anxious about Kyocera potentially exiting now know it’s here to stay – which means competitors must continue to offer compelling alternatives. This competition is healthy for the supply chain: it encourages all suppliers to improve performance, pricing, and support. Inkjet users ultimately benefit from a stable, competitive landscape of component suppliers. If for any reason Kyocera’s restructure had signaled a retreat from inkjet, those users might have faced fewer choices and possible supply constraints. Instead, the scenario is one of Kyocera staying in the game with full force, which keeps the supply chain diverse and robust. Integrators might still diversify their sourcing as a risk mitigation (many already design systems that can accommodate printheads from more than one brand), but Kyocera’s presence ensures one of the top options remains viable.
Ripple Effects for Inkjet Users and Integrators
The “ripple effects” of Kyocera’s corporate moves thus appear to be largely reassuring for inkjet users and integrators, with a few strategic watch-points. End users of printing equipment (e.g. print service providers) are unlikely to notice any negative impact in their day-to-day operations stemming from Kyocera’s restructure. If anything, in the medium term they may see positive effects – such as a new wave of Kyocera-powered printers boasting better performance or lower operating costs, as Kyocera injects more innovation into its products. Kyocera’s own TASKalfa Pro 15000c installations have shown how having Kyocera at the helm of both the printhead and the engine can yield benefits like high uptime and competitive running costs. Users can expect that Kyocera’s intensified focus on the document solutions space will bring more such reliable solutions to market.
Inkjet integrators (the companies building printers or industrial systems using Kyocera printheads) will take comfort in the continuity of partnership. They likely view Kyocera’s restructuring news as a validation of the inkjet segment’s importance. With Kyocera “channeling resources to bolster” its document solutions unit, integrators can anticipate sustained support and perhaps faster responsiveness when it comes to co-developing new applications or customizing heads for their needs. For example, Kyocera’s investment in fine ceramics and semiconductor technologies (e.g. a new ¥68 billion factory for advanced ceramic components) could have ancillary benefits for printheads, since piezoelectric printhead actuators are a form of advanced ceramic. A more technologically advanced Kyocera might translate into even more durable and precise printheads down the line.
Of course, integrators will remain pragmatic. They will keep an eye on how the divestiture of unrelated units progresses – any large upheaval in a global company can have unforeseen side-effects. However, the consensus in the industry is that Kyocera’s inkjet printhead supply chain is stable and possibly stronger as a result of the company’s renewed focus. One industry consultant summed it up: Kyocera’s move to slim down is ultimately about playing to its strengths – and inkjet is clearly one of those strengths.
Conclusion
In summary, Kyocera’s business restructuring – involving the sale of certain non-core businesses – is a strategic realignment that should reinforce, rather than undermine, the inkjet printhead supply chain. By pruning weaker segments and concentrating on core areas like inkjet printing, Kyocera is sending a message that it’s “all-in” on the markets that matter to our industry. For inkjet users and system builders, the immediate takeaway is one of continuity and confidence: Kyocera remains a committed supplier and innovator in printheads and printing solutions. The ripple effects include expectations of ongoing product improvements, a stable (or improved) supply line, and heightened competitive energy among all printhead makers. Stakeholders should stay informed as Kyocera’s divestiture targets become clear, but as of now, no disruption is on the horizon for Kyocera’s inkjet partnerships. Instead, the restructuring could be the prelude to Kyocera delivering even more value across the digital print ecosystem – a leaner company forging ahead with its inkjet mission.
Kyocera’s case illustrates a broader point about the print industry supply chain: when a major player recalibrates its business, it can cause a wave of speculation and planning among partners. In this instance, that wave seems to be carrying the industry in a positive direction, with Kyocera’s recommitment to inkjet ensuring that integrators and users can continue to rely on a key pillar of the digital print infrastructure. All eyes will be on Kyocera as it navigates this transition, but the smart money is on a smoother, stronger inkjet supply chain emerging on the other side.
Sources: Kyocera corporate and news announcements inplantimpressions.cominplantimpressions.com; industry analyses (In-plant Impressions, DIGITIMES Asia) inplantimpressions.comdigitimes.com; Kyocera executive statements tonernews.comlinkedin.com; and end-user insights industryanalysts.com.
Citations
Kyocera to Sell Off Non-Core Businesses
Kyocera to divest US$1.27 billion in non-core business amid 3-year profit decline
Kyocera to Showcase Commercial Printing Technology
Kyocera Fights Back and Dismisses Naysayers: Print Business Remains Its Powerhouse! | Tonernews
Kyocera to Showcase Commercial Printing Technology
Three Mainstream Printheads for Digital Printing - Johope Technology