To boost Japan’s and the global power semiconductor chain, Denso and Fuji Electric are investing $1.4 billion in producing SiC power semiconductors for EVs, with government support.
Japanese companies Denso and Fuji Electric are joining forces to invest in and produce silicon carbide (SiC) power semiconductors for electric vehicles (EVs). The $1.4 billion initiative has received approval from Japan’s Ministry of Economy, Trade, and Industry, which will contribute one-third of the total investment.
The total investment by Denso and Fuji Electric is expected to reach JPY 211.6 billion (US$ 1.4 billion), with projects scheduled for completion by mid-2027.
Denso is focusing on improving the quality and efficiency of SiC technology, from wafers and element devices to modules and inverters. Meanwhile, Fuji Electric has been developing SiC power semiconductor components that enhance efficiency and enable more compact designs for power electronics, including mass production of related modules.
In this initiative, Denso plans to expand two facilities: one in Kota, Aichi prefecture, for producing epitaxial wafers and another in Daian, Mie prefecture, to manufacture SiC wafers. Meanwhile, Fuji will expand its Matsumoto plant in Nagano Prefecture to produce SiC epitaxial wafers and power semiconductors.
In a statement, Fuji Electric emphasised that this collaboration will contribute to strengthening Japan’s semiconductor supply chain and enhancing the global competitiveness of its semiconductor and automotive industries.
SiC power semiconductors are critical for electrified vehicles (EVs) and other applications. They offer better performance in high-temperature, high-frequency, and high-voltage environments compared to traditional silicon semiconductors. They also help reduce energy consumption, driving growing demand due to global decarbonisation efforts.
