Japan’s Ministry of Economy, Trade and Industry (METI) has agreed to provide subsidies worth up to JPY 70.5 billion (USD 470 million) to Denso Corporation, Toyota Motor Corporation’s main auto parts supplier, and Fuji Electric Company, to support the expansion of their silicon carbide (SiC) power semiconductor business.
Power semiconductors are used in electrified vehicles (EVs) and other products and are essential for the efficient delivery and use of electrical energy. Compared with traditional silicon semiconductors, SiC power semiconductors deliver superior performance under high temperature, high frequency and high voltage conditions, while significantly reducing electricity consumption. Demand for these components is rising rapidly as governments around the world implement low-carbon policies.
The grants are intended to help “develop and strengthen frameworks for the supply of SiC semiconductors” in Japan. The two companies’ total investments are expected to reach JPY 211.6 billion (USD 1.4 billion) and are expected to be completed in the first half of 2027.
Denso plans to expand two facilities to produce substrates for next-generation SiC power semiconductors. The plant in Kota, Aichi Prefecture, will be expanded to produce epitaxial wafers, while new facilities in Daian, neighboring Mie Prefecture, will produce SiC wafers.
Fuji Electric plans to expand its factory in Matsumoto, Nagano Prefecture, to produce SiC epitaxial wafers and SiC power semiconductors.
Fuji Electric said in a statement: “Through this partnership, the companies will contribute to the development of semiconductor supply frameworks in Japan and enhance the international competitiveness of Japan’s domestic semiconductor and automotive industries.”
“Denso, Fuji Electric get government support for power chips” was originally created and published by Just Auto, a brand owned by GlobalData.
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