The growing demand for power semiconductors is largely being fueled by the electric vehicle (EV) market, prompting several semiconductor companies to take action. Partnerships between companies such as Rohm and Toshiba have emerged to expand power semiconductor production capacity. Fuji Electric is also gearing up to boost its equipment investment.
Fuji Electric's plans involve a substantial investment of JPY200 billion yen (approximately US$1.4 billion) in the semiconductor sector over a three-year period, starting from the fiscal year 2024 through 2026. This investment aims to establish a silicon carbide (SiC) power semiconductor production line in Japan to increase output.
In the upcoming three-year mid-term business plan starting in fiscal year 2024, Fuji Electric's investment in the power semiconductor sector is expected to exceed JPY200 billion. This marks a substantial increase compared to the average annual investment of about JPY40 billion over the previous five-year period until the fiscal year 2023.
Notably, Fuji Electric's main revenue source comes from the power electronics sector, with semiconductors contributing to approximately 20% of its revenue. The company's financial report highlights revenue and profit growth in the semiconductor business due to expanding demand for power semiconductors in electric vehicles, particularly in the last quarter of 2023, showing resilience despite declining demand from the consumer electronics sector.
In Omdia's research, Fuji Electric ranked fifth globally in power semiconductor revenue in 2022, with a revenue of US$12.16 billion. This underscores the company's position and influence in the global power semiconductor market.
Other Japanese companies are also actively investing in power semiconductors. For example, Mitsubishi Electric plans to invest 100 billion Japanese yen by fiscal year 2026, with the aim of expanding its capacity to five times the current level. Renesas Electronics is also establishing a new power semiconductor production line, with production scheduled to commence in 2025. These developments indicate a concerted effort within the Japanese semiconductor industry to meet the rising demand for power semiconductors.
