Fuji to invest $1.4bn in power semiconductor production
Fuji Electric is planning to almost double its annual spend on silicon carbide (SiC) power semiconductor production over the next three years.
According to Nikkei, the Japanese company invested around USD 35 million a year in the sector from 2019 to 2024. But now it intends to bump that up to nearly USD 50 million a year in the three years to March 2027. That adds up to a total investment of USD 1.4 billion.
The reports say Fuji will establish a SiC power semiconductor production line to ramp up output of 6-inch wafers, with 8-inch wafer production expected to start in the fiscal year 2027.
At present, Fuji's main source of revenue comes from power electronics , including power equipment and systems, and renewable energy management. In 2019, the firm acquired India's Consul Neowatt Power Solutions to boost its presence in the power electronics sector.
However, Fuji clearly sees power semiconductors as a growth area. Global demand for these products is booming thanks largely to the rise of the e-mobility and data centre markets. According to Omdia, the sector grossed USD 26.1 billion last year. The analyst says Fuji currently ranks fifth in the space.
But Fuji is not alone in targeting power semiconductors. Evertiq just reported that Toshiba Corporation says it is boosting production of power chips as it enters its new life in private ownership. Meanwhile Rohm, Renesas and Mitsubishi Electric have also revealed plans to invest heavily in the space.