Mitsubishi Electric Eyes Power Semiconductor Alliance in Japan

Mitsubishi Electric is reportedly in discussions with domestic competitors to establish a power semiconductor alliance, according to the company’s CEO, Kei Urushima, in an interview with Bloomberg. This move aims to enhance collaboration in producing these critical components, essential for driving various electronic devices globally.

Urushima highlighted that while corporate executives across Japan broadly support such collaborations, administrative progress remains slow. Facing stiff competition from global leaders like Germany’s Infineon Technologies, Japanese companies are feeling the pressure as the gap widens in this sector.

He emphasized the importance of unity in the power semiconductor industry, which demands continuous technological innovation. "We cannot afford to keep fighting amongst ourselves; we need to unite while there's still a chance to gain market share," he stated.

Growing Demand for Power Semiconductors

The global race to develop smaller, lighter, and more efficient semiconductors is intensifying as industries look to supply electric vehicles and high-voltage electronics. Despite being an automobile powerhouse, Japan has struggled with the widespread adoption of electric vehicles. To address this, the Japanese government has introduced a ¥200 billion subsidy program to support the development of next-generation silicon carbide (SiC) power semiconductors. This initiative has already catalyzed collaboration among major Japanese semiconductor companies.

Significant Investments in SiC Projects

On November 29, 2024, a joint SiC semiconductor project by Denso and Fuji Electric received government subsidies. The ¥211.6 billion investment (approximately $1.4 billion) will be supported by up to ¥70.5 billion (around $480 million) in government funding. Under the partnership, Denso will produce SiC substrates while Fuji Electric will manufacture SiC power devices, with expanded facilities expected to achieve an annual production capacity of 310,000 wafers starting May 2027.

Earlier this year, Rohm and Toshiba announced discussions to strengthen their semiconductor businesses. Their proposed collaboration, backed by the Japanese government, involves a total investment of ¥388.3 billion ($2.6 billion), with ¥129.4 billion ($880 million) provided as subsidies. The partnership focuses on producing SiC and silicon power semiconductor devices, with Rohm’s Miyazaki plant handling SiC devices and wafers, while Toshiba’s Ishikawa plant specializes in silicon chips.

Coherent’s Entry into SiC Business

In October 2023, Coherent established a subsidiary to manage its SiC business independently, securing a $1 billion investment jointly from Denso and Mitsubishi Electric. Each company contributed $500 million and signed long-term supply agreements. Under this partnership, Coherent will supply 6-inch and 8-inch SiC substrates and epitaxial wafers to both Japanese companies.

Conclusion

As the demand for advanced power semiconductors grows, Mitsubishi Electric’s efforts to form an alliance underscore the importance of collaboration in maintaining competitiveness. With government support and substantial investments, Japan's semiconductor industry is positioning itself to meet global demands and reclaim a leading role in the market.