The demand for power semiconductors is being driven by the electric vehicle (EV) market, leading several semiconductor companies to respond accordingly. In addition to partnerships between companies like Rohm and Toshiba to expand power semiconductor production capacity, Fuji Electric is also preparing to increase its equipment investment.
According to Nikkei, Fuji Electric plans to invest JPY200 billion yen (approximately US$1.4 billion) in the semiconductor sector over the three fiscal years from 2024 to 2026 (April 2024 to March 2027). This investment will establish a silicon carbide (SiC) power semiconductor production line within Japan to expand output.
In the mid-term business plan spanning three years starting in the fiscal year 2024, the investment in the power semiconductor sector has been decided to exceed JPY200 billion.
Over the five-year period until the fiscal year 2023 (April 2019 to March 2024), Fuji Electric invested an average of about JPY40 billion annually in the power semiconductor sector. For the next three-year mid-term business plan, the annual investment is set to increase to approximately JPY70 billion. Fuji Electric will accelerate its investment in the power semiconductor sector, with a focus on production equipment.
For instance, the 6-inch wafer production line for SiC power semiconductors is expected to begin mass production in the fiscal year 2024 (April 2024 to March 2025). The 8-inch wafer production line for SiC power semiconductors is expected to start mass production in the fiscal year 2027.
Fuji Electric's main source of revenue comes from the power electronics sector, including power equipment and systems, and renewable energy management. Semiconductors contribute to approximately 20% of its revenue.
According to Fuji Electric's financial report, due to the expanding demand for power semiconductors in electric vehicles, the semiconductor business in the last quarter (July to September 2023) showed revenue and profit growth compared to the same period in 2022, unaffected by the decline in demand from the consumer electronics sector.
Fuji Electric, according to Omdia's research, ranked fifth globally in power semiconductor revenue in 2022, with a revenue of US$12.16 billion.
Several Japanese companies are actively investing in power semiconductors. In addition to Fuji Electric, Rohm, and Toshiba, Mitsubishi Electric plans to invest 100 billion Japanese yen by the fiscal year 2026, expanding its capacity to five times the current level. Renesas Electronics is also establishing a new power semiconductor production line in its factory in Gunma Prefecture, Japan, with production expected to commence in 2025.
