December 16, 2024 /SemiMedia/ — Mitsubishi Electric CEO Kei Uruma recently revealed that the company is in discussions with domestic competitors about collaborating on power semiconductor production. He urged Japanese firms to join forces to manufacture core components critical for global equipment. However, Uruma acknowledged that while management supports collaboration, administrative-level talks have made little progress, especially as Japanese companies lag behind market leaders like Germany's Infineon, heightening the urgency.

Uruma emphasized that Japan's fragmented competitive landscape poses challenges, and cooperation in the power chip sector is vital for continuous innovation. He added that collaboration is a smart move while market share remains up for grabs. Global tech companies are racing to develop smaller, more efficient semiconductors to meet the growing demand for electric vehicles and high-voltage electronic equipment, both essential for sustainability.

To counter the slow growth of Japan's EV market, the government has allocated subsidies totaling ¥200 billion (approximately $1.3 billion) to support next-generation power semiconductor development, including silicon carbide chips. This has already fostered alliances among Toshiba, Rohm, Denso, and Fuji Electric for joint manufacturing.

According to Omdia, Mitsubishi Electric accounted for 5.5% of global power semiconductor sales in 2023, trailing Infineon’s 22.8% and ON Semiconductor’s 11.2%. Power semiconductors are a growth priority for Mitsubishi Electric, which expects the segment to contribute ¥36 billion in operating profit this fiscal year, marking a 20% year-on-year increase.

Additionally, Mitsubishi Electric is investing in an 8-inch silicon carbide wafer facility in Kumamoto Prefecture and expanding its stake in Coherent’s silicon carbide business. Uruma noted that Mitsubishi may also pursue acquisitions to bolster its Serendie digital platform. The company plans to double platform staff to 20,000 by fiscal 2031 and is prepared for multi-billion-yen deals if necessary.