TOKYO (Reuters) – Japanese automotive supplier Denso has announced plans to invest approximately 500 billion yen ($3.3 billion) in the semiconductor industry by 2030. This investment is part of the company’s strategy to triple the scale of its chips business by 2035, with the aim of expanding its presence and capabilities in the semiconductor market. Denso’s president made this announcement on Thursday.
The automotive industry has been heavily impacted by the global semiconductor shortage, which has caused disruptions in the production of vehicles worldwide. As a major player in the automotive supply chain, Denso is taking steps to address this issue and secure a stable supply of semiconductors for its operations.
Denso’s investment in semiconductors highlights the growing importance of these electronic components in the automotive sector. Modern vehicles are equipped with advanced technologies such as autonomous driving systems, electric powertrains, and connectivity features, all of which rely heavily on semiconductors. By expanding its chips business, Denso aims to enhance its capabilities in these areas and meet the evolving needs of the automotive industry.
The company’s president expressed optimism about the future of Denso’s chips business, citing the increasing demand for semiconductors from automakers. As the automotive industry undergoes a transformation towards electric and autonomous vehicles, the demand for semiconductors is expected to continue growing. Denso aims to position itself as a leading supplier of semiconductors for the automotive sector, leveraging its expertise and technological capabilities.
The investment of 500 billion yen ($3.3 billion) will be allocated towards research and development, production facilities, and partnerships with semiconductor manufacturers. By strengthening its technological capabilities and expanding its production capacity, Denso aims to contribute to the development of advanced semiconductor solutions for the automotive industry.
Denso’s commitment to the semiconductor industry aligns with the global focus on creating a more sustainable and connected future. Semiconductors play a critical role in enabling technologies for electric vehicles, smart cities, and Internet of Things (IoT) applications. By investing in semiconductors, Denso is positioning itself to capitalize on these emerging trends and contribute to the advancement of mobility solutions.
In conclusion, Denso’s investment of 500 billion yen in semiconductors demonstrates its commitment to expanding its presence in the chips business. As the automotive industry becomes increasingly reliant on semiconductors, Denso aims to meet the growing demand and contribute to the development of advanced technologies. With this investment, Denso is positioning itself as a key player in the semiconductor market and preparing for the future of mobility.
($1 = 150.1900 yen)
(Reporting by Daniel Leussink; Editing by David Dolan and Jamie Freed)
