Semiconductor & Device Business
May, 2023 Mitsubishi Electric Corporation

Contents

1. Executive Summary

P4

2. Business Overview

P6

3. Growth Strategy of Key Growth Business- Power Device -P10

3-1. Growth Strategy

P10

3-2. Focus Business Areas to Accelerate GrowthP113-3. Strengths of SiC ModuleP123-4. Manufacturing Strategy

P133-5. Strategic Investment Plan

P14

4. Continuous Growth by Leveraging Business Synergies

P16

2

1

Executive Summary3

E xe c u t i v e S u m m a r y⚫ Revenue and operating profit margin of Power Device Business as a Key Growth Business are on track to hit the FY2026
target ※1 : over 240 billion yen in revenue and over 10% in OPM.
Growth Target
FY2022
Actual2021年度実績

FY2023
Actual2022年度実績

FY2026
Target2025年度目標

Semiconductor & Revenue
DeviceOPM￥241.4 billion￥281.5 billion￥0.3 trillion

7.0%

10.4%

12%

Revenue￥179.0 billion￥210.0 billion￥240.0 billion or more

OPM

6.5%

8.4%

10% or morePower Device⚫ Accelerate business growth, making the most of market expansion, by strengthening SiC capability.
Aim for SiC ratio in revenue of 30% or more, in Power Device Business by FY2031.
⚫ Extensive SiC module installation in electric vehicles will significantly boost its demand, which will help SiC module to be
applied to various fields.
Mitsubishi Electric will contribute to the realization of GX ※2 by providing highly competitive SiC modules leveraging ourstrengths to these wide range of fields.
⚫ In order to ensure this growth strategy, we have doubled the investment plan from FY2022 to FY2026.

Continuous aggressive investment for further business expansion will follow.

※1 Plan as of Nov. 2021

※2 GX : Green Transformation

4

2

Business Overview

5

B u s i n e s s Po r t f o l i oProvide key devices to support carbon-neutral, safe, secure and comfortable society for a sustainable future.

Key Growth Business

Power Device Business
Pursue technological evolution andcontribute to the realization of GX

Revenue ratio 75%

Contribute to the realization of a decarbonized society and comfortable
life by implementing energy-saving power electronics equipment suchas electric vehicles, consumer products (air conditioners, etc.), industrial
equipment, renewable energy and railways

High-frequency and Optical Device BusinessResilient Business

Create DX and new value throughchanges in functions and applications

Revenue ratio 13%

Contribute to the realization of a safe and secure world and acomfortable digital society with compound semiconductor devices,
applied to various applications such as wireless communication, opticalfiber communication and sensing fields

Si Power Device

High-Frequency Device

•
•
•
•

Satellite Communications, 5G Base Stations, Millimeter
Wave Radar, etc.

IPM
IGBT module
Power MOSFET module
HVIC, etc.

SiC Power Device••••

SiC-SBD, SiC-MOSFET
Full SiC power module
Full SiC-IPM
Hybrid SiC power module , etc.

Optical Device
Optical Fiber Communication, Data Center, etc.

Infrared Sensor Device
Security, Monitoring, People Counting,
Air Conditioning, Vehicle Interior Sensor, etc.
※Revenue ratio : FY2023 actualM a r ke t E n v i r o n m e n t a n d D i r e c t i o n o f G r o w t h⚫ Power Device： Strong momentum for decarbonization initiates mid-term market expansion and high growth will beachieved mainly in the automotive and consumer fields.
⚫ High-Frequency and Optical Device： Expand GaN device sales for base station applications, where demand is expected togrow, while maintaining solid optical device business.

High-Frequency
and Optical
DevicePower Device《 Market environment》
Automotive

ConsumerIndustry
Renewable Energy
Railways⚫
⚫

⚫
⚫

Progress in electrification
Accelerating a shift toward SiC, enabling
significant reduction of power loss
compared to Si (FY2023→FY2026 CAGR : +165%)

Increasing use of inverters
Growing demand for ATW heat pumps(￥billion)

500

CAGR
+21%

0
200

CAGR
+9%

0
500

⚫

FY2023

Progress in energy saving and automation

FY2026《 Direction of growth》
Further strengthen
SiC

Maintain top
position

CAGR
+7 %

0

GaN Devices for
5G Base Stations⚫

Optical Device for
Data Center⚫

Demand increasing due to service area
expansion and investment in emerging
countries

100

Advances in high-speed optical networks
due to larger data communication andartificial intelligence (AI)

100

CAGR
+18%

0

0

Accelerate market
penetration

CAGR
+6%

※Market size is our estimate based on the forecast by a research company.

O u r St r e n g t h⚫ Two strong businesses with global top-class product lines.
⚫ Provide cutting-edge key devices to the market, making the most of synergies inside Mitsubishi Electric Group.

Mitsubishi Electric Group Resource

Global Top Class Key Devices⚫ R&D Department

Power Device Business⚫

Combine design
technology andmanufacturing technology
to achieve highperformance and quality

Power module
global share

Consumer IPM Full SiC module
share for railways
share

No.2

No.1

No.1
Create synergy

High-Frequency and Optical
Device Business⚫
⚫

Advanced compound
semiconductor technology
Product development
capabilities to meet various
market needs

Product development and technicalcollaboration with the R&D
department that brings together
advanced fundamental technology
and production technology within thegroup

GaN high-power amplifiersfor Ku-band satellite
communication groundstations market share

Optical devices
for data centersmarket share

No.1

No.1

⚫ Application Business Department
Co-creation and collaboration withother departments, covering a wide
range of application fields

Provide cutting-edge
key devices to the market※ All shares are actual results for FY2022, according to our estimate

3

Growth Strategy of Key Growth Business- Power Device -9Growth Strategy- Power Device -⚫ Focus on enhancing business in the rapidly growing automotive field and the consumer field where we are strong, while
maintaining industrial, renewable energy, and railway fields as solid business base.
⚫ Strengthen the growth capability based on our long-term experience and expertise of SiC, then accelerate growth bymaking the most of market expansion.
《 Basic strategy》⚫ Concentrate resources on fields where our strengths meet market needs⚫ Expand sales by further strengthening the automotive and consumer
fields as growth drivers

SiC sales ratio

Accelerate growthwith SiC
Progressing as planned for the mid-term plan*(Revenue, OPM)

SiC

￥179 billion
6.5%￥210 billion
8.4%

FY2022

FY2023

Accelerate development and next-generation SiC products
for automotives
Strengthen global sales activities
Secure stable procurement and strengthen technicalcooperation with SiC substrate suppliers, by building
strategic partnerships
Increase production capacity (enhance productivity of 150mm
wafers, construction of new 200mm factory building)Strengthen profitability and build a businessfoundation for the next growth10%+

FY2026•••240 billion+

Expand strategic products
focus on automotives andconsumer products

•

30%+

￥

Si

Strengthen growth capability focusing on strong SiC

FY2031•

Transform product portfolio (promotion of standardization and•

Further productivity improvement (expand production of Si

sharing, expansion of strategic products mainly for automotives andconsumer products)
200mm wafers at the highly efficient Fukuyama factory, increase Si
wafer diameter to 300mm)※ Plan as of November 2021

Focus Business Areas to Accelerate Growth- Po w e r D e v i c e -⚫ Extensive SiC module installation in electric vehicles will significantly boost its demand, which will help SiC module tobe applied to various fields.
⚫ Mitsubishi Electric will contribute to the realization of GX by providing highly competitive SiC modules leveraging ourstrengths, e.g. comprehensive technology platform and rich market achievement, to those wide range of fields.

SiC Power semiconductor market trends

Mitsubishi Electric Power Device Business Strategy⚫ The module market is expected to expand
rapidly⚫ Adoption of SiC spreads to various fields
of application⚫ World-leading module product line
IPM・IGBT module area
SiC module area
Discrete area

US＄M

Applied device output(VA)

SiC module market

CAGR

43%

Large electricmotor
DC power
Railwaystransmission

Source： OMDIA

1990th2012
Renewable energy
General inverter
Servo amplifier

Air conditioner

Small DC motor
PC power supply

Switching frequency(Hz)

2015
2019

xEV

Began development ahead of other companies

World's first (Released in October 2010)
2010

IPM
IGBT
moduleRefrigerator
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028
F
F
F
F
F
F

Mitsubishi Electric
focus areas⚫ Provide SiC modules for various applications

Hybrid SiC DIPIPMTM installed in room air
conditioner "Kirigamine"

World's first (Released in December 2012)
Hybrid SiC-IPM installed in numerical controller(CNC) drive unit

World's first (Press released in June 2015)

High-capacity full SiC power module installed inmain converter for high-speed railway

World‘s highest output(Development announced in February 2019)
For xEV full SiC power module installed in ultracompact power unit

Contribute to GX in a wide range of fields※World's first and world’s highest：According to our research at the time press releaseSt r e n g t h s o f S i C M o d u l e- Po w e r D e v i c e -Provide optimal devices fit for the needs of the rapidly expanding SiC module market, by combining Mitsubishi Electric’s
diverse elemental technologies (compound semiconductor technology, chip technology, and module technology) and our
extensive achievements in the market.
⚫ Chip technology：World's highest level of low
loss※1◆ Established cutting-edge
manufacturing technology to make
SiC substrate defects harmless
Ensured high reliability andproductivity with highly precise
screening technology⚫ Market achievement：
SiC module

Quality
improvement
Improve
Productivity

3.3kV Full SiC
Module◆ Awarded Siemens Mobility “Moving Beyond” prize at
InnoTrans 2022 for high performance and high reliability⚫ Market achievement：
automotive market◆ Cumulative adoption
including Si, equivalent toCompoundsemiconductor
technology

Chiptechnology

Strengths ofMitsubishi
Electric SiC
Rich market
achievement

Moduletechnology

26 million cars

Provide module solutions,
optimized for various applications◆ Unique trench MOSFET structure,
reduces electric field, achieves

approx. 50% lower on resistancecompared to conventional SiC*2.
Contribute to xEV’s longer
cruising range and systemcost reduction

Low loss

Resistance (mΩ・㎠)⚫ Compound semiconductor technology：
Advanced epitaxial growth and wafer processing technology

Conventional Trench⚫ Module technology：Industry-leading compact
design and weight reduction◆ J1*3 Series is approx. 29% smaller andapprox. 53% lighter than other companies(products in the same capacity range*4)
Contribute to compact
design and cost
reduction of inverters

Competitor
product (Image)

Smaller &lighter

J1 Series※1 For devices withstand voltage of 1500V or more. According to Mitsubishi Electric’s research as of Sep 30, 2019, press release※2 Our planar MOSFET ※3 Power module for automotive ※4 As of May 2023, according to our researchM a n u f a c t u r i n g St r a t e g y- Po w e r D e v i c e -⚫ Promote wafer diameter enlargement and increase production capacity, in addition to establishing and expanding
automated production line with high productivity.
⚫ Establish integrated product development and manufacturing structure in assembly and inspection process fordevelopment, design and production technology verification in order to enhance product competitiveness.

Power device manufacturing map

Development and design
Assembly & inspection
primary factory•

SiC
Itami City, Hyogo
Prefecture

Main facilities••

Si 200mm
Si 300m(Scheduled to start
operation in FY2025)

Koshi City, Kumamoto Prefecture
Kikuchi City, Kumamoto
Prefecture (Shisui)(Start operation in FY2027, scheduled
to be gradually expanded)•
SiC 200mm

Strategic investment to expand capacity for mid-term
growthFukuyama City, Hiroshima Prefecture(Wafer process primary factory)•••(FY2023→FY2027)

Further improve productivity by expanding
production at the Fukuyama Factory
•

Si

•

Si 200mm
SiC 150mm

Assembly & inspection process facilities (power module)•
Melco Power Device Corporation (Fukuoka [Fukuoka City/Itoshima City],
Hyogo [Tamba City/Toyooka City])•
Mitsubishi Electric GEM Power Device (Hefei) Co., Ltd. (Hefei, Anhui, China)

200mm: construct a new wafer plant in Kumamoto (Shisui)area, achieve cutting-edge energy efficiency and automation.
The capacity will be increased according to future demand
150mm: enhance existing production facilities

Production capacity： approx. 5 times

Wafer Process

Fukuoka City, Fukuoka
Prefecture

Key initiatives

300mm: start large-diameter line operation from FY25 at
Fukuyama Factory
200mm: constructed a line with improved production
efficiency and increase production at Fukuyama Factory

Production capacity： approx. 2 times(FY2021→FY2026)

Assembly &Inspection••

Enhance manufacturing capabilities : construct a new factory inFukuoka area to integrate product development and manufacturing
structure for development, design and production technology
Increase capacity: expand timely and appropriately in response
to increasing demandSt r a t e g i c I n v e s t m e n t P l a n- Po w e r D e v i c e -Double the previous investment plan *1 to approximately 260 billion yen, including the construction of a new factory building
for SiC, in order to drive the growth strategy for Power Device Business.

Capital investment (actual, planned)

SiC 200mm wafer new factory building

Double cumulative capital investment from FY2022 to FY2026

Achieve high production efficiency through cutting-edgeenergy conservation and high-level automation⚫ Continue strategic growth investment for further businessexpansion in SiC, in addition to the conventional plan

⚫ Achieve energy savings of approximately 30%*3 comparedto the conventional system by thoroughly recovering
waste heat, in addition to adopting a swirl-induced
stratified air conditioning system (TCR-SWIT®*2) in clean
rooms⚫ Employ automatic transport system to enable labor saving
and equipment operation rate improvement

Continue investment
for growth

260 billion

Approx. ￥Previous plan
Approx.￥130 billion
Approx.￥100 billion

FY2017-2021

FY2022-2026

FY2027-2031※1 Plan as of November 2021

Startup scheduled
in April 2026
※2 TCR-SWIT is a registered trademark of Takasago Thermal Engineering Co., Ltd. ※3 Simulation value in this project4

Continuous Growth by Leveraging Business Synergies

15

Continuous Growth of Semiconductor & Device Business by Leveraging Business Synergies⚫ Strengthen Mitsubishi Electric Group's integrated solutions by providing key devices.

⚫ Develop devices with high added value from the customer's perspective, by incorporating the knowledge from internal
application business departments◆ Infrastructure BA• DC power transmission• Railways• Defense/Space• Renewable energy• Uninterruptible powersystem (UPS)• Optical network◆ Industry & Mobility BA• Industrial robot• Inverter, servo• xEV◆ Life BA• Elevator• Air conditioner• Home appliances

Semiconductor &Device Business“Leading social change throughthe "evolution" and "innovation"of semiconductors”

Device development with highmarket competitiveness⚫ Provide high value-added devices
from the customer's perspective
to a wide range of markets

High
quality⚫ Continuous growth of the
Semiconductor & Device businessHighperformance

Advanced
technology