Power semiconductors will still be in short supply in 2022, and the industry is still booming. However, unlike the previous tight supply of all types of devices, after nearly two years of capacity expansion, the low-end market has gradually become saturated.

Affected by structural driving factors this year, the demand for automotive, industrial, renewable energy and smart devices is very strong. In terms of power devices, IGBTs and third-generation semiconductors (such as SiC, GaN) have become the focus of enterprises.

Earlier media reports showed that both ON Semiconductor and Infineon reported that the orders for power semiconductors were fully loaded. In response to the strong market demand, recently, Japan's Renesas, Fuji Electric, Toshiba and other companies have received good news about power semiconductors.

Renesas to restart Kofu plant at 90 billion yen

Japan's Renesas announced on May 17 that it will invest 90 billion yen in its Kofu plant in Kofu. They noted that while the factory closed in October 2014, Renesas plans to reopen the factory in 2024 as a 300mm power semiconductor fab capable of manufacturing IGBTs and power MOSFETs.

Renesas said the global demand for high-efficiency power semiconductors that supply and manage electricity is expected to increase dramatically globally as the momentum for carbon neutrality grows. Renesas, in particular, expects rapid growth in demand for electric vehicles (EVs), and therefore plans to increase its production capacity for power semiconductors such as IGBTs to contribute to decarbonization. Once mass production is achieved at the Kofu plant, Renesas Power Semiconductor's total production capacity will double.

It is reported that the Kofu plant of Renesas Semiconductor Manufacturing Co., Ltd., a wholly-owned subsidiary of Renesas Electronics, previously operated 150mm and 200mm wafer manufacturing lines. In order to increase production capacity, Renesas decided to use the remaining building of the factory and restore it to a 300mm wafer fab dedicated to power semiconductors.

Taking into account the semiconductor strategy of the Ministry of Economy, Trade and Industry, Renesas plans to invest in 2022 while closely coordinating with the Ministry. Renesas also pointed out that although this investment will not have a significant impact on Renesas Electronics' performance in 2022.

Fuji Electric, Toshiba, and Mitsubishi Electric have already had a layout

According to Fuji Electric’s 2021 financial report, the company’s power semiconductor revenue in 2021 will be US$1.173 billion, a year-on-year increase of 23.7%. According to Taiwanese media reports, Fuji Electric announced in August 2021 that it will invest an additional 40 billion yen ($365 million) to expand its power semiconductor production capacity, of which about 25 billion yen will be invested in the company's fab in Malaysia to start production of 8 inches of silicon wafers. The Malaysian plant is scheduled to start producing power semiconductors in fiscal 2023.

It is worth noting that Fuji Electric has also stated that it has decided to increase capital expenditures for power semiconductors (including investment in SiC power semiconductors) to 190 billion yen in the context of increased demand for electric vehicles and renewable energy.

For Toshiba, the company's power semiconductor revenue in 2021 will be $996 million, a year-on-year increase of 13.4%. On February 4 this year, Toshiba announced that it will build a new 12-inch wafer fabrication facility at Kaga Toshiba Electronics, Japan's main discrete device production base in Ishikawa Prefecture, to increase its current power semiconductor production capacity to 2021. 2.5 times.

Mitsubishi Electric's power semiconductor layout was earlier. It is reported that Mitsubishi Electric has built a 300mm wafer fab dedicated to power and analog semiconductors near Milan, Italy, and is expected to start production in the second half of 2022. According to official financial report data, power semiconductor sales in 2021 will increase by 18% year-on-year to $1.476 billion.