Denso & Fuji Electric to expand semiconductor production in Japan

Automotive suppliers Denso and Fuji Electric are receiving subsidies of up to 70.5 billion yen from the Japanese government for the production of silicon carbide semiconductors at the two companies' existing sites.

denso germany established — Image: DENSO

With the new funds, Fuji Electrics plans to expand its facility in Matsumoto, Nagano Prefecture, and Denso will invest in two standing factories, in the town of Kota in Aichi Prefecture and the other in the city of Inabe in neighboring Mie Prefecture. Under the new plan, the partners plan to produce 310,000 SiC power semiconductors annually and start supplying the chips in May 2027.

This is not the first major supply-line investment by the Japanese government, as the Japan Times writes: “In December 2023, it decided to provide up to ¥129.4 billion for joint power semiconductor production by Toshiba and Rohm.” The government is now working to promote power semiconductor-related collaborations, “limiting its financial aid to projects involving investments of ¥200 billion or more.”

Denso is still involved in a variety of e-mobility supply chains, working on an inductive charging project with a larger consortium in Japan, as well as other areas of mobility, such a drive development collaboration with the now-insolvent German startup Lilium. Recently, Toyota also announced intentions to sell its shares in Denso, however, this is more due to Toyota needing the funds for its own EV investment plans, rather than issues with the supplier.

japantime.co.jp, fujielectric.com (PDF)