DENSO shares Company Direction Updates of Semiconductor Strategy at Business Briefing

Jun. 2, 2022

Key media, analysts, and investors heard from DENSO leaders about the mobility supplier’s short- and mid-term plans in semiconductor fields

KARIYA, Japan (June 2, 2021) – DENSO, a leading mobility supplier, yesterday hosted a business briefing to share its semiconductor strategy and how the company is achieving its Long-term Policy 2030. During the briefing, DENSO leaders discussed how semiconductors help lay the foundation in pursuing the company’s Two Great Causes: “Green,” achieving carbon neutrality by 2035and, “Peace of Mind,” creating a safe and seamless world for all.

"Semiconductors are crucial to the automotive industry as new vehicles and mobility technologies become increasingly reliant on them to unlock new capabilities, especially in electrification and autonomous driving areas,” said Yoshifumi Kato, Senior Executive Officer and Chief Technology Officer of DENSO Corporation. “It’s important we make the most of existing semiconductor supplies, while also creating our own rugged chips to meet growing demand. At DENSO, we have divided semiconductor activities into three areas, each with its own strategy for stable procurement and development."

<Strategies for Microcomputer & System on Chip (SoC)>

Promote development, standardization and deepening cooperation with specialized manufacturers and activities to maintain supply chain” to secure stable procurement of advanced logic semiconductors

Securing a stable procurement network is most important for microcomputers and SoCs, where the division of labor in specification, design, and manufacturing is progressing and miniaturization is necessary. DENSO will work to strategically present specifications from an in-vehicle perspective, promote standardization, secure multiple production bases, and reform its procurement structure.  By 2025, DENSO intends to standardize microcomputers, close the gap between the automotive and semiconductor industries, and make the supply chain more robust. 

<Strategies for Power and Analog Semiconductors>

Develop and manufacture devices & wafers and manufacturing processes" in-house to maximize system competitiveness.

DENSO has been producing high voltage power and analog semiconductors for about half a century, endeavoring to develop rugged semiconductors. In high voltage power semiconductors, DENSO is working to produce large-diameter silicon wafers with strategic partners and to fully launch silicon carbide wafers, which will contribute to improving the electric cost for battery-electric vehicles (BEVs). In analog semiconductors, the company will accelerate the development of rugged semiconductors that can withstand the performance of in-vehicle environments and application specific integrated circuit (ASIC) that thoroughly meet our customers' needs. By 2025, DENSO aims to achieve sales equivalent to 500 billion yen as in-house manufactured semiconductors.

<Strategies for Sensors> 

Strengthen judgment capabilities for current situation and realization capabilities for the future to create strategic partnerships with semiconductor venders

Through collaboration with strategic partners, DENSO will apply technologies in the non-vehicle domain to the automotive domain. The company will accelerate collaboration with strategic partners by anticipating rapidly changing technology trends and communicating in-vehicle trends to strategic partners. The company will also work to further strengthen its semiconductor planning capabilities, which will be necessary for future mobility, and our technological capabilities to maximize sensor performance. DENSO is aiming to develop compact, high-performance environmental recognition sensors with advanced driver assistance functions of Level 3 or higher by 2025. 

Please see presentation slides from below here.

About DENSO

DENSO is a $45.1 billion global mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in its 198 facilities to produce electrification system, powertrain system, thermal system, mobility electronics, & advanced devices, to create jobs that directly change how the world moves. The company’s 167,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2022. For more information about global DENSO, visit https://www.denso.com/global/en/.