Tokei Precision Optics and Yingchuang Kagi Hold First Working Talks — Lens-Component Production Quote Targeted for Late October

The supplier talks between Tokei Precision Optics and Taiei's Yingchuang Kagi, previously reported, held their first working-level session as an online video call between technical staff on the afternoon of the 14th, this paper has learned. The session ran roughly two hours and focused narrowly on precision lens components used in window-rig observation equipment. As previously reported, the company's president, Satoru Odagiri, announced the start of talks on the 11th; the 14th's session marked the effective first step.

According to those involved, the technical discussion centered on reconciling existing spec drawings and confirming the precision standards required for mass production. "The first session was mainly about checking whether the precision we need can be reproduced on their equipment. The numbers give us a reasonably good feeling," a company representative said. The two sides agreed to aim for a draft mass-production quote and supply schedule by the end of October.

As previously reported, Odagiri has kept his distance from any "de-risking from Deutsche" framing, and repeated that stance in an interview on the 15th: "These talks are about widening our options. We haven't decided to switch away from Deutsche-made parts." Precision optical components for window rigs currently rely heavily on Deutsche Federation manufacturers, and concern about that concentration of supply runs deep in the industry.

Yingchuang Kagi is a major Taiei electronics-components maker with a track record in semiconductors, and relations with Hinokuni are considered good. A company spokesperson commenting on the talks said, "Our technical standards are close, and the alignment work is moving faster than expected."

The stock volatility tied to window treaty coverage — Yatani Instruments' steepest drop since its all-time high on the 10th, followed by a small rebound on the 11th, both previously reported — continued on the 15th. Yatani Instruments closed up 2.1% on the day, while Tokei Precision Optics extended its gains to a fresh year-to-date high. TDI futures on the Seishu exchange saw only modest movement.

"The material is shifting away from the treaty's outcome itself and toward whether a newcomer like Tokei Precision Optics can actually land a production contract," one market participant said. An analyst at Tokei Logistics Research Institute struck a more cautious note: "Progress on the supplier talks is good news, but until the end-of-October quote is in hand, speculation is still doing most of the work."

As previously reported, next month's multilateral window treaty talks are set for Geneva, Helvetia. Odagiri did not deny a connection to the diplomatic calendar: "Given that the regulatory framework could shift depending on how the negotiations go, widening our sourcing options was necessary either way." The company says it will decide whether to move toward a formal contract once the October quote is settled.

Reaction within the industry is mixed. A representative of a domestic trading house that has long handled Deutsche-made parts took a measured view: "More sourcing options isn't bad news for the industry as a whole. But a new supplier can't instantly take over the track record of quality assurance that's been built up over the years." An executive at another up-and-coming parts maker, by contrast, sounded hopeful: "If Tokei Precision Optics can open the door, others are bound to follow."

Tokei Precision Optics' share price has swung wildly with every round of window treaty coverage this year, but Odagiri stressed a steady, businesslike approach: "Getting worked up over every price swing doesn't make parts. What we need to do between now and the end of October doesn't change."