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Japanese manufacturers will invest nearly $ 2 billion in the production of power chips for electric vehicles
Toshiba and Fuji Electric are jointly investing 200 billion yen ($ 1.9 billion) to boost production of high-efficiency power semiconductors for electric vehicles, according to Japanese news agency Nikkei. This requires a sharp change in the plans of the governments of most countries of the world, which are aimed at an early transition to transport with electric traction.
Charging station on a street in Paris. Image source: Keiichiro Asahara
Thus, Toshiba plans to invest 80 billion yen ($ 770 million) in expanding the production of power semiconductors by March 2024. The money will go to expand production capacity at the company’s factory in Ishikawa Prefecture, Japan. This will increase the production output from 150 thousand. silicon wafers per month up to 200 thousand. plates. We add, Toshiba specializes in low-voltage power semiconductors with voltages up to 300 V. For the operation of voltage conversion systems and on-board electronics of electric vehicles, this is enough.
This effort should help Toshiba increase its power semiconductor sales by 30% to 200 billion yen from about 150 billion yen currently. Also, these products of the company are widely used in power converters for electrical networks.
Power semiconductor packaging examples
Fuji Electric, in turn, will invest 120 billion yen ($ 1.15 billion) in its domestic and foreign production facilities by March 2024 (during the 2023 financial year). Production capacity of the Yamanashi plant in Japan will be increased by 30% this fiscal year compared to 2021. The company also plans to modernize production facilities at factories in Malaysia and other countries outside Japan in order to manufacture products there using its components.
Fuji Electric’s goal is to increase the share of revenue from sales of power semiconductors for cars from 35% in 2021 to 50% in 2023.
Note that power semiconductors are used not only in tandem with electric motors of electric vehicles. They are everywhere: in power windows, air conditioning systems, lighting and many other parts of cars. The efficiency of their work will determine how efficiently the charge of traction batteries of electric vehicles is consumed. For this type of transport, battery charge is the most critical operating parameter, so any savings will be met with a bang.
We add that the German Infineon remains the leader of the power semiconductor market with a share of up to 30%. Japanese companies Toshiba, Fuji Electric and Mitsubishi Electric together hold a share of about 20%. In 2021, according to Omdia, the power semiconductor market was worth 1.46 trillion yen ($ 14 billion). The market is expected to grow at 6% p.a. due to increased demand for equipment in the electric vehicle and renewable energy sector.