Driving Innovation: Toyota Supplier Denso Invests $3.3 Billion in Semiconductor Industry

Toyota Supplier Denso Invests $3.3 Billion in Semiconductor Industry

TOKYO – Denso, Japan’s leading auto parts maker and supplier to Toyota Motor, will invest about 500 billion yen ($3.3 billion) in the semiconductor business by 2030, its president Shinnosuke Hayashi revealed on Thursday at the Japan Mobility Show in Tokyo.

The investment will be used for research and development, capital expenditure, and mergers and acquisitions. The company aims to develop high-performance chips, which are becoming increasingly important, for use in automobiles.

“Stable procurement of materials is essential to expand production [of semiconductors], and we will build strategic alliances with various companies [to achieve that],” Hayashi stressed.

Denso announced earlier this month that it will invest about $500 million in the Silicon Carbide (SiC) business of U.S. material maker Coherent, and the Japanese company plans to actively pursue such partnerships. SiC is a key material in power semiconductors.

Denso began a three-year plan to invest 250 billion yen in the semiconductor field from 2022. By presenting a longer-term investment plan, it is doubling down on its semiconductor focus. It has not disclosed sales figures for its semiconductor business, but aims to triple current sales by 2035.

President Hayashi also mentioned software development, saying, “we will shift from the basic design phase to the implementation phase of product realization,” and revealed plans to collaborate with Toyota and other companies on joint software development, using a Denso affiliate which develops software for cars.

Source: Nikkei Asia

Related Articles

General
Information, News
The government’s current wood utilization strategy targets buildings with up to three stories, but it will expand the coverage to structures with four or more stories in response to technological innovation, the sources said.
General, Holiday/Home Makers, Investors/Business
News
Japan is set to more than double the number of people it will allow into the country and may scrap the need for a negative Covid-19 test to enter, as the last rich economy with stringent entry requirements still in place looks to join the rest of the world in easing pandemic curbs.
Holiday/Home Makers, Investors/Business
Information
A common concept in Japan is known as mottainai, which essentially means that things should not be wasted. You might be thinking the same if you own a vacation property in Japan, but don’t spend enough time there. Have you been throwing around the idea of renting it out on AirBNB or another online listing site. Due to the COVID-19 pandemic, some have not been able to travel in and out of the country, and may be wishing to instead use their properties for lodgers in the meantime. Is it possible and if so, how?
General
News
As of this year, Japan’s ecommerce market is set to be worth $150.1 billion (£105.7 billion), with a compound annual growth rate of 6.2 per cent, according to a 2020 report by JP Morgan. Meanwhile, overall Japanese retail sales rose at the fastest pace – by 5.2 per cent – in five months in March this year as consumer demand recovered from the huge hit it took from the pandemic.