Growth of Power Semiconductor Market with Rise of Electric Vehicles
ROHM and Mitsubishi Expand Production Facilities in Kyushu
Accelerating Expansion of Market Share in Power Semiconductors
[Asia Economy Reporter Lee Ji-eun] Leading Japanese semiconductor companies, including Mitsubishi Electric, have recently been gathering in Kyushu, Japan. With the growth of the power semiconductor market in the era of electric vehicles, Japanese companies have significantly expanded their capital investments centered on the Kyushu region.
On the 29th, the Nihon Keizai Shimbun reported that ROHM Apollo, a subsidiary of the Japanese semiconductor company ROHM, will begin mass production of silicon carbide (SiC) power semiconductors at its factory in Chikugo City, Fukuoka Prefecture, starting next month. Power semiconductors regulate voltage and control the flow of current, mainly used in white goods. Recently, they have been used as key components to enhance electric vehicle performance.
Among these, SiC semiconductors use artificial compounds as materials, making them significantly more power-efficient than conventional power semiconductors that used only silicon, a single element. ROHM Apollo plans to invest up to 220 billion yen (approximately 2.1051 trillion KRW) solely in SiC power semiconductors by the first quarter of 2026.
Additionally, ROHM Apollo has started producing power semiconductors using 6-inch wafers at this factory. From the second half of next year, they plan to introduce manufacturing equipment capable of producing 8-inch wafers at the plant.
Interaction, a company that manufactures smartphone camera sensors, has decided to establish a production base for developing power semiconductor manufacturing technology in Nagasaki City, Nagasaki Prefecture, by March next year. This facility will develop semiconductor precision measurement components and other parts. Since August last year, Interaction has been conducting joint research with Nagasaki University on SiC processing technology used in power semiconductor wafers, striving to develop the technology.
Mitsubishi Electric, which holds the third-largest market share in the global power semiconductor market, has established production facilities responsible for semiconductor front-end processes in Koshi City, Kumamoto Prefecture, and back-end processes in Fukuoka City, Fukuoka Prefecture. Mitsubishi Electric plans to invest 130 billion yen in power semiconductor facilities over five years from 2020 to 2025.
The Nihon Keizai Shimbun reported that Japanese companies, which have fallen behind in the memory semiconductor market, are accelerating capital investments in the Kyushu region to take the lead in the power semiconductor market.
According to a survey by Fuji Keizai in Japan, the global power semiconductor market is expected to grow 2.6 times from 2.3386 trillion yen this year to 5.3587 trillion yen by 2030. Japanese companies hold a significant market share within this. According to the UK market research firm Omdia, the global power semiconductor market size is approximately 15.36 trillion KRW, with three Japanese companies?Mitsubishi, Toshiba, and Fuji Electric?occupying 20% of the market.
Japanese companies also boast strong competitiveness in the next-generation power semiconductor field. According to the global market research firm Yole D?veloppement, last year ROHM ranked fourth in global sales of SiC power semiconductors, following three U.S. companies including STMicroelectronics.
The Nihon Keizai Shimbun stated, "Although ROHM ranked fourth, it is possible to achieve the top sales position once all factories in Chikugo City are fully operational," and added, "The Kyushu production base is expected to be a major driving force as Japanese companies compete with American semiconductor firms."
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