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TDK Dormitory Town Plan to Save Akita Factories

Financial Times Companies •
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TDK is building a dormitory-town complex on 10 hectares of rice fields in Akita to attract workers and combat severe population decline. Five people die for every baby born in Akita, the fastest-depopulating prefecture in Japan, where the average resident age is 54. The project provides 350 workers with large modern apartments, a canteen, gym, and DIY room, aiming to create intergenerational exchange.

Located near TDK's "mother" factories that test global manufacturing processes, the complex supports Apple's goal to reduce supply-chain dependence on China. Japanese Prime Minister Sanae Takaichi backs similar regional clusters for economic security. While other Japanese hubs like Hamamatsu have embraced immigration, TDK's Honjo factory remains entirely Japanese, with plans to widen hiring nationally.

The initiative could also draw people to Akita's nascent offshore wind industry. Digital efficiency and automation at the Honjo factory have helped steady headcount despite rising output, but HR acknowledges limitations without new personnel. The town of Yurihonjo has lost over a fifth of its population in 20 years, and Mayor Takayuki Minato warns the town's survival is at risk if decline continues.

Source: Financial Times Companies · Summarized by HeadlinesBriefing