Collaboration Key for Victory in Power Semiconductors ー Mitsubishi Electric President

The president of one of Japan's largest makers of power semiconductors voiced his strong support for domestic collaboration, saying he would "proactively consider" industry tie-ups in the face of strict global competition.

Mitsubushi Electric President and CEO Kei Urama called for cooperation among Japanese firms. Referring to Infineon Technologies, Germany's largest semiconductor maker, Urawa said "I think Japanese manufacturers will lose over time if they continue to invest individually."

Urama made the comments in a series of interviews with Japanese reporters last month.

Lagging Behind Foreign Rivals

In 2023, European and American companies held the top three positions in the global power semiconductor market, according to the British research firm Omdia. Japanese companies held lower positions, with Mitsubishi Electric at 4th, Fuji Electric at 5th, Rohm at 8th, and Toshiba at 9th.

*A rendering of a new semiconductor factory to be constructed in 2028 by Mitsubishi Electric in Kikuchi City, Kumamoto Prefecture. (© Mitsubishi Electric)*

"To win globally, it is crucial for domestic companies to work together toward a final objective, holding discussions while setting aside individual interests," Urama said.

Power semiconductors can be broadly divided into single, standalone "discrete" devices, and "modules," which integrate multiple smaller components. Mitsubishi Electric holds the No. 2 share in the global module market.

"Rohm and other companies are working on discrete devices. If we split into two groups and strengthen both sides, we can beat Infineon," he added.

Demand for power semiconductors is expected to increase, particularly for electric vehicles. However, Japan's producers are relatively small in scale, drawing concern from the Ministry of Economy, Trade and Industry (METI).

Government Support for Industry Tie-ups

METI is promoting industry collaboration. Last year the ministry launched a subsidy program for capital investment projects in power semiconductors. To encourage joint projects, the program required that applicants invest at least 200 billion yen. As a result, Toshiba and Rohm collaborated and received a subsidy of approximately 130 billion yen.

Momentum for Japanese industry consolidation is increasing with METI's support. In September, Denso announced it would begin discussions on a strategic partnership with Rohm, revealing its intention to invest capital in the collaboration.