Driving New Advances in Mobility and Social Infrastructure with Next-Generation Automotive Semiconductors

Automotive semiconductors function as the heart of in-vehicle systems—from engine control to safety devices and communication functions—effectively serving as the vehicle’s brain.

Automotive semiconductors encompass MCUs and SoCs, power and analog devices, as well as sensors.

Power semiconductors in the power and analog domains are central to electrification. In particular, silicon carbide (SiC) devices are key next-generation semiconductor technologies, now essential for inverter and motor control in HEVs, PHEVs, and BEVs. Compared with conventional silicon, SiC devices reduce power loss by approximately 70%, enabling smaller, more efficient inverters and power modules. The result is an extended driving range, faster charging, lighter systems, and significant reductions in CO₂ emissions.

Microcontroller units (MCUs) and systems-on-chip (SoCs) form the core of in-vehicle control systems. As large-scale integrated electronic control units (ECUs) and cross-domain control architectures continue to evolve, the importance of tightly integrated hardware–software development is increasing.

Automotive sensors such as cameras, radar, and LiDAR are indispensable to the evolution of advanced driver assistance systems (ADAS) and automated driving. They enable real-time processing of vast amounts of sensor data, AI-based recognition and decision-making, and communication among vehicles and with surrounding infrastructure. DENSO combines its commitment to high-reliability, high-precision in-house development with close partnerships to further enhance the technologies that unlock the full potential of these sensors.

“As automotive sensors evolve, vehicle intelligence will accelerate. Optimal energy control based on driving conditions and the traffic environment will become possible, helping to reduce unnecessary acceleration, deceleration, and idling. If energy management can be optimized through coordination between vehicles and infrastructure, it will also contribute to reducing CO₂ emissions across society.”
ーMatsuoka

As vehicles grow smarter, automotive semiconductors are finding applications beyond the car—in consumer devices, industrial uses, and social infrastructure. Future development will increasingly consider these broader fields. In smart cities and infrastructure, the environmental durability, longevity, and efficiency of automotive semiconductors can support power systems and communication base stations that run around the clock. In outdoor IoT and digitalized environments, demand is also expected to rise for semiconductors used in power management and communication control.

Automotive semiconductor technologies—valued for their reliability, energy efficiency, and compact design—are also drawing attention in industrial equipment, robotics, and data centers. Applications are expanding to industrial robots, automated guided vehicles (AGVs), and drones, while power semiconductor advances in efficiency and size are expected to benefit data center and server power supplies as well.

“Looking back at the history of semiconductors, the earliest advances were made in semiconductors for computers, consumer electronics, and home appliances. Those technologies were later applied to automotive semiconductors. By further refining these technologies, we believe they can be applied to a much broader range of fields, including industrial machinery and smart cities.”
ーMatsuoka

DENSO’s automotive semiconductor business is strategically focused on three areas to advance vehicle electrification and intelligence: power semiconductors capable of handling high voltages and large currents, MCUs and SoCs that serve as the core of in-vehicle control, and sensors that detect the vehicle’s external environment and internal condition.

The core of this strategy is finding the right balance between in-house capabilities and partnerships. Semiconductor manufacturing is highly equipment-driven, requiring substantial upfront investment and carrying high fixed costs.

That is why DENSO focuses its resources on areas where its strengths stand out—such as power and analog semiconductors—while building a highly efficient production framework.

Our approach is to develop advanced technologies in-house to build proprietary expertise, then rely on specialized fab partners for mass production.

“We take technologies from initial development through the hurdles of mass production in-house, scaling them to tens, hundreds of thousands, or even millions of units. Once the process is established, we transfer it to partners. This allows us to balance quality with efficiency. Going forward, we will keep deepening partnerships while strengthening our internalization of the technology and our mass production framework.”
ーMatsuoka

DENSO’s strength in automotive semiconductors comes from nearly 60 years of experience and a seamless development structure that spans R&D through production. Central to this is a vertically integrated monozukuri approach. By maintaining long-standing in-house production capabilities, DENSO achieves advantages in quality, cost, delivery, and supply stability. This setup covers product design, mass production technology, quality assurance, and manufacturing, allowing for agile, continuous improvement, and development.

In addition, close collaboration with numerous OEMs worldwide, along with a global network of production and development sites, further strengthens DENSO’s capabilities. By incorporating regional needs and perspectives, DENSO formulates technology strategies suited to the times. For example, in response to rapid market changes such as the slowdown in BEV growth and a renewed shift toward HEVs and PHEVs, DENSO has established a framework that enables flexible adaptation through its broad customer base and global perspective.

“By building a system in which research, development, design, manufacturing, and quality assurance work in close coordination and can immediately feed back issues from production sites and customer locations, we believe it becomes possible to put our Genchi Genbutsu (go-and-see) approach into practice. We are promoting a global supply framework and local optimization by leveraging production and development bases in Japan and overseas. Through collaboration with partners in Taiwan, Europe, the United States, and Japan, we achieve both the adoption of cutting-edge technologies and the economies of scale.”
ーMatsuoka

When DENSO launched its automotive semiconductor business in 1968, ICs for consumer use were already available. But semiconductors durable enough to handle the harsh conditions inside a vehicle—heat, vibration, and longevity—were still largely unexplored anywhere in the world.

To meet the demanding quality and reliability standards of automakers, DENSO chose to develop and manufacture automotive semiconductors in-house. By taking responsibility for the design, production, and implementation of core technologies that shape vehicle value—such as electrification and intelligence—the company has built a clear competitive advantage and strong differentiation.

“Our predecessors committed what was, at the time, an extraordinary investment to start work on automotive semiconductors. Their foresight now forms a vital foundation for us. To carry that legacy forward, we are building an organization that places strong emphasis on developing technical and manufacturing talent.”
ーMatsuoka

How will these accumulated strengths be further developed going forward? In the near term, the focus will be on strengthening competitiveness in high-voltage power semiconductors and enhancing application-specific integrated circuit (ASIC) development.

For high-voltage power semiconductors, DENSO follows a dual-material strategy, selecting either Si or SiC based on application requirements. By working with strategic partners on large-diameter Si wafers, the company secures stable supplies of high-performance Si devices for HEVs and PHEVs, while speeding up broader adoption of SiC for BEVs.

“While the global market once moved quickly toward BEVs, attention is now returning to HEVs and PHEVs. Typically, Si is chosen for HEVs and PHEVs, and SiC for BEVs, but many manufacturers focus on only one. By pursuing both material strategies, DENSO can adapt to market shifts and reinforce its competitive position.”
ーMatsuoka

In ASIC development, DENSO utilizes a Silicon On Insulator – Bipolar CMOS DMOS (SOI-BCD) process capable of withstanding automotive environmental conditions, and develops in-house process technologies optimized for high temperatures, high voltages, and noise resistance. With design capabilities that anticipate system needs, DENSO goes beyond simple circuit design to achieve thoughtfully designed ASIC development that considers overall system usability and future scalability.

Strengthening automotive semiconductor business requires people with a wide range of expertise. Fields such as semiconductors, electrical and electronic engineering, materials, chemistry, mechanical engineering, information technologies (AI/IoT/software), production engineering, quality assurance, and planning for products, business, sales, and management are all essential. In addition, a global perspective, language skills, and cross-cultural understanding are increasingly important. The integration of these diverse specialties will be necessary to address future business challenges. At the same time, in the global market, demand will continue to fluctuate between BEVs and HEVs/PHEVs, and geopolitical changes are likely to affect supply frameworks.

“Amid rapid change, it is difficult for DENSO alone, or with only our existing internal resources, to solve all the challenges we face today. To make the world better through our automotive semiconductor business, we need fellow members who share this vision and have the drive to break through change while advancing technology.
Specifically, we seek people who bring knowledge and experience from a wide range of fields—not only semiconductor technology—who embrace change and take on challenges with speed. We value those who communicate openly regardless of seniority, thrive in a culture that welcomes challenge, demonstrate teamwork and cooperation toward shared goals, act with autonomy and ownership, and respect diverse values while continuing to learn with flexibility."
ーMatsuoka

Matsuoka, head of the business unit, expresses his own aspiration to make society—and the planet—better in the following words.

“I want to protect this blue planet. It may sound idealistic, but that is the mindset I bring to my work. As electrification and intelligence advance not only in automobiles but also in smart factories, smart cities, and other industries and social infrastructure, I believe this will lead to richer lives and greater well-being for people, as well as improved sustainability of the planet's natural resources and environment. Automotive semiconductors are the smallest yet most critical key component in making this possible. Along that journey, I also hold many dreams—such as DENSO becoming the world’s best in the field of automotive semiconductors. I want to make sure we never lose sight of these dreams.”
ーMatsuoka

At DENSO, members with diverse expertise are working together to develop next-generation power semiconductors and ASICs. Those who wish to contribute to the electrification and intelligence of vehicles and to the development of key components that support a mobility-driven society are warmly encouraged to apply to this business unit.