Reference Message Network reported on June 18th according to Yomiuri Shimbun's report on June 10th, Japan's semiconductor giants are adjusting their investment strategies for power semiconductors. The reason is that Chinese enterprises have strengthened their offensive, product prices have fallen, and the market environment has deteriorated sharply.

The report stated that power semiconductors are a type of semiconductor that can control electricity, widely used in fields such as electric vehicles. In order to enhance corporate competitiveness, the Japanese government has introduced policies to promote domestic industry reorganization. Under this background, companies are also actively taking action.

Renesas Electronics Corporation has suspended its project to develop next-generation power semiconductors using carbon-silicon materials with better energy-saving effects. Renesas originally planned to start mass production at its Takasaki plant in Gunma Prefecture in 2025, but has now dissolved the carbon-silicon product team and will reassess the timing of mass production.

Compared to traditional silicon materials, the characteristics of carbon-silicon materials are that they can better withstand high voltage and large current. If used in the drive components of electric vehicles, it can extend the vehicle's driving range.

However, the growth rate of the electric vehicle market in Europe and other regions is lower than expected. The increase in production by Chinese enterprises has led to a continuous decline in carbon-silicon prices. The increasing local procurement rate of Chinese automotive manufacturers has also had an adverse impact on Japanese companies. In view of this situation, Japanese manufacturers are cutting back on investments. Mitsubishi Electric Corporation has postponed the expansion plan of its new power semiconductor factory in Kumamoto Prefecture, which was originally scheduled to start production in autumn this year. Mitsubishi Electric originally planned to invest 300 billion yen (approximately 2.1 billion US dollars) in power semiconductors over the five years from fiscal year 2026 to fiscal year 2030, and is now considering reducing the investment amount.

Rohm Company has also been affected by the sluggish power semiconductor market, resulting in its first net loss in 12 years in the consolidated financial statements of fiscal year 2024. Rohm originally planned to invest 280 billion yen in carbon-silicon semiconductors over the three years starting from fiscal year 2025, and is now considering reducing the investment amount to 150 billion yen.

Rohm President Tetsuo Higashikami pointed out that although the long-term development prospects of carbon-silicon semiconductors are promising, the situation of oversupply in the market and intensified competition will continue to exist.

According to the "Economic Security Promotion Law", the Japanese government has listed semiconductors as "specific important materials" and increased support for manufacturers. Regarding the standards for subsidizing investment in power semiconductor equipment, the Japanese government stipulates that the project scale shall generally be more than 200 billion yen. The purpose of the Japanese government setting a high threshold is to encourage domestic enterprises that find it difficult to bear high investment alone to reorganize.

Toshiba Corporation and Rohm have decided to cooperate in the field of power semiconductors and apply for government subsidies. Denso Corporation, a major automotive parts manufacturer, and Fuji Electric Corporation have also made the same decision. Companies are privately exploring further opportunities for integration and reorganization.

Analyst Akira Minakawa of Omdia pointed out: "If action is not taken quickly, Japanese companies may lose their competitiveness, and the necessity for reorganization is becoming increasingly prominent." (Translated by Ma Xiaoyun)

Original article: https://www.toutiao.com/article/7517203989717336615/

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