December 6, 2024 /SemiMedia/ — Denso and Fuji Electric have announced a partnership to develop high-efficiency silicon carbide (SiC) power semiconductor devices for electric vehicles (EVs). Despite a slowdown in the EV market, the companies are investing ¥211.6 billion ($1.4 billion), with one-third of the funding provided by Japan's Ministry of Economy, Trade and Industry (METI).

The investment will expand domestic production facilities in Japan, aiming to achieve an annual capacity of 310,000 units by May 2027. Denso will focus on producing SiC wafers, while Fuji Electric will manufacture the devices.

Japan’s METI Minister Yasutoshi Nishimura welcomed the initiative, stating that it aims to ensure supply capacity comparable to leading Western companies. In 2023, Infineon led the power semiconductor market with a 21.3% share, according to Omdia. Japanese firms Mitsubishi Electric, Fuji Electric, Toshiba, and Rohm ranked in the top 10 but collectively held a smaller share than Infineon.

As Japan’s largest auto parts manufacturer, Denso has expanded its partnerships in recent years. It invested in Infineon in 2018, began collaborating with UMC in 2023 for power semiconductor production, and announced potential cooperation with Rohm in September 2023. A Denso official remarked, “By broadening our partnerships, we aim to enhance the competitiveness of our components.”

Denso and Fuji Electric are investing heavily in SiC devices, which enable EVs to achieve about 10% longer range compared to conventional silicon-based semiconductors. Since Tesla introduced SiC devices in its Model 3 in 2018, the technology has gained widespread attention from automakers. Research forecasts indicate that the SiC market will grow to $8.8 billion by 2025 and $10.5 billion by 2026.