Japan’s push to bolster domestic chip production gained momentum as Denso Corp. and Fuji Electric Co. secured government approval for their ¥211.6 billion ($1.4 billion) semiconductor investment plan.
The auto-parts maker and power electronics company will jointly develop and manufacture silicon carbide (SiC) power semiconductors, crucial components for electric vehicles and industrial equipment. The project will receive ¥70.5 billion in government subsidies, highlighting Tokyo’s determination to strengthen its semiconductor supply chain.
The companies will spread production across three facilities. Denso will handle SiC wafers at its Daian Plant and SiC epitaxial wafers at its Kota Plant, while Fuji Electric will produce both epitaxial wafers and power semiconductors at its Matsumoto Factory.
The partnership aims to capitalize on growing demand for SiC chips, which offer better performance in high-temperature and high-voltage conditions compared to traditional silicon semiconductors. This advantage makes them particularly valuable for electric vehicle systems, where efficiency and weight reduction are critical.
The move aligns with Japan’s broader strategy to reduce dependence on foreign semiconductor suppliers and revitalize its domestic chip industry. However, the companies face stiff competition from established players in Europe and the United States, who are also expanding their SiC production capabilities.
