Episode3-2 Adopting In-house Production for IC Products

A future we believe in
– even if there is no path to it,
do we have the will
to blaze the trail?

In 1959, DENSO engineers were racking their brains over a defect in a certain purchased component.
It was a rectifier – a semiconductor component that rectifies electrical current in an alternator. 
Because this was originally a component for use in household appliances, it often experienced problems under the punishing operating conditions of automotive use.
How could it be modified for automotive use? 
DENSO had no experience in semiconductor manufacturing, and the company was at a loss.
Nowhere in the world was there any automotive manufacturer that fabricated IC chips in-house.
Accordingly, the company decided to gain its own experience, and set out to create a prototype rectifier.
Starting from zero, DENSO began semiconductor study sessions, and the equipment needed for develop was also made in-house. 
The succession of defective parts that piled up formed a veritable mountain. 

Nonetheless, every failure was a new lesson.
Know-how grew, and eventually the first rectifier demonstrating the sought-after characteristics was completed.
This was the first step of DENSO's path to IC-chip development.
It's enough for us to continue just the research for IC chips and leave the production to another company. 
There were also some who held this view, but the IC research team of the time thought differently.

IC chips that operate in the special environment that an automobile represents can only be made reality by us as a manufacturer of vehicle-mounted components. 
We must offer products of true value for the customer.

With this united view, the decision was made to set out on an arduous path.
The year 1968 marked the full-fledged start of IC development that included manufacturing, a first in the automotive industry.
That said, the company had no expertise at all regarding manufacturing.
Since the first thing that was needed was to obtain production equipment, the company flow to a trade fair in the USA. 
The directors of the board themselves walked with sandwiches in hand, never even pausing to rest. 
The engineers who accompanied them say that they too felt that they must succeed no matter what.
Moving side by side, they welcomed experts and formed systems. 
They also sought learning from major manufacturers as well, and immediately put the knowledge gained to good use.
To create products that have social value,
DENSO fiercely studied, acted, and forged a path.
Then, even after reaching success in the volume manufacturing of IC products, the company continued to take up the challenge of succession of difficult development projects, and accomplishing them.
A customer who came to us for help in resolving a difficult matter said this.
"Achieving the impossible
– that's DENSO!"
We are the creators of the next new conventional wisdom.

The Spirit Connected with This Episode

Spirit 1

ForesightVision

Anticipate change

Spirit 2

ForesightCreativity

Create new values

Spirit 3

ForesightChallenge

Overcome difficulties

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