The industry ministry said Friday it will provide aid of up to ¥70.5 billion to auto parts maker Denso and Fuji Electric for the joint production of power semiconductors.
With the world aiming to promote decarbonization, demand for power semiconductors, used in electric vehicles and other products, is expected to grow. By supporting the two companies, the ministry hopes to strengthen domestic production.
The total cost for the Denso-Fuji Electric joint power chip business is seen reaching ¥211.6 billion.
Denso will expand two facilities to produce substrates for next-generation power semiconductors using silicon carbide (SiC) that can help reduce electricity consumption significantly. One of the two footholds is in the town of Kota in Aichi Prefecture and the other in the city of Inabe in neighboring Mie Prefecture.
Fuji Electric will expand its plant in the city of Matsumoto, Nagano Prefecture, to manufacture SiC power semiconductors.
Through the collaboration, the companies aim to produce 310,000 units of SiC power semiconductors annually. They will start supplying the chips in May 2027.
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