TE Connectivity Releases Latest Annual Report 'Industrial Technology Index'

Kanagawa Prefecture, Kawasaki City – April 1, 2026 – TE Connectivity (NYSE: TEL, headquartered in Galway, Ireland, hereinafter referred to as 'TE'), a global leader in connectivity and sensor fields, has announced the 2026 edition of the 'Industrial Technology Index.' According to this survey, the adoption rate of AI in industrial technology companies exceeds 80%, and as AI becomes more deeply integrated into operations, companies are increasingly seeking a return on their investment.

For the first time in the four years that TE has conducted this survey to understand the current state of innovation in companies, companies responded that they prioritize 'financial goals' over 'product innovation.' 43% of executives responded that their top priority is 'pursuit of corporate profits,' an increase of 17 points from the previous year. On the other hand, the percentage who chose 'product innovation' as a priority decreased by 9 points year-on-year to 26%. A similar trend was observed in the responses of engineers, with 31% choosing 'pursuit of corporate profits' (+2 points year-on-year) and 24% choosing 'product innovation' (-7 points year-on-year).

As the pursuit of return on investment continues, respondents from China, Germany, India, Japan, and the United States all reported that AI adoption continues to expand. This year, 35% responded that they are 'widely implementing AI,' an increase from 22% in the previous year. Looking at countries, the United States had the highest at 41%, a significant increase of 26 points from the previous year when it was among the lowest adoption levels alongside Germany. Meanwhile, in Japan, the response of 'widely implementing AI' was 33%, an increase of only 2 points from the previous year, suggesting that adoption had progressed at an earlier stage than in the United States.

Japanese companies' approach to AI shows a tendency to proceed with AI adoption cautiously, while maintaining confidence in their strategic direction. The proportion of Japanese companies viewing their AI adoption as 'limited to a phased approach' is relatively low (Japan 29%, global average 40%), suggesting that AI initiatives aim for 'transformative results.' This cautious approach extends not only to AI but also to the adoption of new technologies in general. Japanese engineers and executives responded that they 'want to wait until the usefulness of new technology is proven' at a rate of 36%, exceeding the global average of 30%.

TE CEO Terrence Curtin stated, 'As AI adoption progresses in companies worldwide, this year's 'Industrial Technology Index' reveals the challenge that there is not yet internal alignment on the definition of success after AI is integrated into daily operations. This report indicates that as AI adoption accelerates, the importance of setting common goals between engineers and executives is increasing. Without aligned goals, AI can create friction within the organization rather than driving transformation in innovation and operations. Companies that are translating AI investments into actual business results are making steady progress.'

This year's 'Industrial Technology Index' also reveals trends related to the use of AI in the sustainability domain, AI utilization in daily operations, and the impact on engineering talent. Details and the full text of the 2026 'Industrial Technology Index' can be viewed at te.com/techindex-ja.

About TE CONNECTIVITY

TE Connectivity plc (NYSE: TEL) is an industrial technology leader that contributes to creating a safer, more sustainable society and a richer, more connected future. As a trusted innovation partner, our connectivity and sensor solutions transmit power, signal, and data across a wide range of fields, contributing to the development of various industries such as next-generation transportation, energy networks, industrial automation, and data centers supporting artificial intelligence. With over 90,000 employees, including 10,000 engineers, in approximately 130 countries, we support our customers' businesses. In a rapidly evolving world, TE continues to provide reliable connections under the philosophy of 'EVERY CONNECTION COUNTS.' For more information, please visit www.te.com and LinkedIn, Facebook, WeChat, and Instagram.