According to Bloomberg, Mitsubishi Electric Corp. CEO Kei Uruma revealed that the company is in discussions with domestic competitors about collaborating on power chip production, with the aim of establishing a Japanese alliance.
Uruma noted that while management generally supports such cooperation, progress has been hampered at the administrative level. However, as Japanese firms continue to fall behind Germany's Infineon Technologies AG, the sense of urgency is growing.
In an interview, Uruma remarked, "There are too many competitors in Japan." He emphasized that the power chip industry requires ongoing technological innovation, and collaboration makes sense while opportunities to capture market share still exist. "We shouldn't be fighting each other. We need to unite."
Globally, industrial tech companies are racing to develop smaller, lighter, and more efficient semiconductors to power electric vehicles and other high-voltage electronics. Japanese automakers are also striving to expand their share of the electric vehicle market. Additionally, the Japanese government is providing subsidies for companies planning to invest ¥200 billion (approximately $1.3 billion) or more in next-generation power chips, such as silicon carbide chips. Stimulated by these policies, Toshiba Corp., Rohm Co., Denso Corp., and Fuji Electric Co. have already announced partnerships for joint production.
When asked if cooperation should extend beyond production to areas such as product development or sales, Uruma said, "I believe that if we want to win, we must."
According to research firm Omdia, Mitsubishi Electric accounted for 5.5% of global power semiconductor sales in 2023, compared to Infineon's 22.8% and ON Semiconductor's 11.2%. Mitsubishi Electric expects its power chip business to drive its semiconductor and device division to achieve an operating profit of ¥36 billion this fiscal year, a 20% increase. Additionally, the company is building a new 8-inch silicon carbide wafer plant in Kumamoto Prefecture and has invested in Coherent Corp.'s silicon carbide business.
