Japan's Fuji Electric plans to invest an additional 40 billion yen (USD 365 million) to expand production of power semiconductors. It is reported that the power semiconductors produced by the company are mainly used in the power system of air conditioners, electric vehicles and other products.
Fuji Electric President Mitsuhiro Kitazawa said the decision to increase the capital was a response to "growing demand in the renewable energy sector," including electric vehicles and solar energy, according to Nikkei Asian Review. The above investment plan means that Fuji Electric will increase its original investment of 120 billion yen to 160 billion yen over the four years ending fiscal 2022.
Of the additional 40 billion yen, about 25 billion yen will be used at the company's fab in Malaysia, which has already started production of 8-inch silicon wafers. In addition, Fuji Electric plans to produce power semiconductors in Malaysia around FY2023. The remaining 15 billion yen will be used to expand production capacity at the company's other plants, such as the Matsumoto plant in Japan.
Fuji Electric expects sales of its semiconductor-related business to increase by 53% from FY2018 to JPY 210 billion in FY2023. The company had set a five-year sales target of 200 billion yen, and the surge in market demand brought a windfall to the Japan company.
In addition, Kitazawa said that semiconductor investment after FY2023 will be "based on market demand." He added that the company is considering an additional investment of about 50 billion yen.
Japan analyst Fuji Keizai expects the global power semiconductor market to grow 44% to 4.05 trillion yen in the decade to 2030 as electric vehicles and 5G technology are more widely adopted.
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