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Denso shifts business model toward semiconductor manufacturing for electrification and consumer markets
Tuesday, March 31, 2026 at 07:57 AM
Denso is pivoting its business strategy to evolve into a semiconductor manufacturer, targeting the electrification of vehicles and expansion into the consumer electronics sector to secure its supply chain and technological edge.
Context
Denso is pivoting its core business strategy to become a primary semiconductor manufacturer, moving beyond its traditional role as an automotive parts supplier. This shift is driven by the rapid growth of vehicle electrification and a new push into consumer markets. To accelerate this transition, the company recently established a dedicated Semiconductor Business Group and has been aggressively divesting from legacy holdings, such as selling a portion of its stake in Renesas Electronics, to reallocate capital toward its own production capabilities.
Key manufacturing initiatives include a 70.5 billion yen joint investment with Fuji Electric, supported by Japanese government subsidies, to mass-produce silicon carbide (SiC) power semiconductors starting in May 2027. Furthermore, Denso has solidified its supply chain position by taking a 10% equity stake in JASM, TSMC’s majority-owned foundry in Kumamoto. These moves allow Denso to secure stable logic wafer supplies while expanding its "REVOSIC" brand of power modules for next-generation electric vehicles and consumer electronics.
Sources (6)
[PDF] Announcement Regarding the Sale of Investment Securities and ...DENSO to Take Minority Stake in JASM - TSMCDenso & Fuji Electric to expand semiconductor production in Japan - electrive.comCharged EVs | DENSO creates its first SiC power semiconductor inverter - Charged EVsDENSO develops its first inverter using SiC power semiconductors | DENSOA Tale of Two Approaches to Revitalize Japan's Semiconductor Industry | FSI
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