Mitsubishi Electric Key Growth Businesses< Power Semiconductor Devices>

November 9, 2021
Mitsubishi Electric Corporation©Mitsubishi Electric Corporation

Executive Summary

1

Formulate a medium-term management plan that targets revenue of¥240 billion or more and operating profit margin of 10% or more in
FY2025（P13）

2

Focus on the automotive and consumer product fields, expand
business by utilizing IGBT and SiC（P13～14）

3Enhance production capacity of 200/300mm, promote productivity
improvement, and maintain capital investment in response tofluctuation in demand （P23～24）

4Provide products as core components of each solution, contribute torealize a decarbonized society, which is a global issue（P26）*¹ IGBT: Insulated Gate Bipolar Transistor/ Insulated gate type bipolar transistor*² SiC: Silicon Carbide / Compared to conventional Si, power loss can be significantly reduced, enabling high efficiency and compact design of inverter equipment.
©Mitsubishi Electric Corporation

2

Contents
1. Business Overview
1-1. Business Structure
1-2. Business Details
1-3. Our Strengths
1-4. Business Management Policy
2. Medium-term Management Plan of Key Growth Businesses
2-1. Market Environment2-2. Growth Strategy
2-2-1. Overall overview
2-2-2. Consumer Segment
2-2-3. Automotive Segment
2-2-4. Investment Plan
2-3. Initiatives on Social Challenges©Mitsubishi Electric Corporation

Note
FY2018 : April 1, 2018 -March 31, 2019
FY2019 : April 1, 2019 -March 31, 2020
FY2020 : April 1, 2020 -March 31, 2021
FY2021 : April 1, 2021 -March 31, 2022
FY2025 : April 1, 2025 -March 31, 2026
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1

©Mitsubishi Electric Corporation

Business Overview

4

1-1

Business Structure

Business Structure
Segment

Sub-segment

Energy & Electric
Systems

Social Infrastructure

Industrial Automation
Systems©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Key GrowthBusinesses

Building Systems

Building Systems

Factory Automation(FA) Systems

FA Control Systems(PLC, Servo, and CNC)

Automotive Equipment

xEV/ADAS

Information &Communication
Systems

Information
Systems & Service

Electronic Devices

Electronic Devices

Power Semiconductor
Devices

Home AppliancesHome Appliances

Air Conditioning &Refrigeration Systems

Electronic System

ADAS：Advanced Driver Assistance System

5

1-2

Business Details

Constituent of Electronic Device Business

Provide key devices that meet social issues such as the after COVID-19 digital revolution andovercoming energy and environmental constrains.
Business

Power Device Business

Overview
Devices used for AC⇔DC, Voltage/frequency
conversion, motor control, power converter
Applications：Home appliances(air conditioners, etc.),
industrial equipment(inverters, servos, etc.), motor
controls(xEV*), traction, wind/photovoltaic power
generations, etc.

High-frequency Device ：wireless communication
High-frequency and
Optical Device Business devices
Optical Device：Optical fiber communication devices
Infrared Sensor Device：Thermal diode infrared sensor
devices

Ratio(FY2020
actual)Approx.
75%

Approx.
15%

Applications：Various communication systems, data
centers, etc.
※TFT-LCD Module Business will end production and business by June 2022.
The composition rate is approx. 10%. (actual result in FY2020)*EV: Electric Vehicle©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

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1-3

Our Strengths

Strengths of Electronic Device Business
Have the strengths of high efficiency, long life and high reliability. Make use of abundant fieldknowledge cultivated over many years, such as optimization with customer’s equipment toimprove its global position, especially in IGBT modules and optical devices for data centers.

Power module(IGBT module) share(Our estimate, FY2019)©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Optical devices share for data centers(Our estimate, FY2019)

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1-4

Business Management Policy

Reasons and Background for Focusing on Power Device
Business as a Key Growth Business
Key devices contribute to a decarbonized society.
Have the top-tier in the IGBT field and expect high growth globally.
Key devices for other key growth businesses.
Power Device Business

Mobility

xEV

Life

Home
appliances

Key growthbusinesses
FA Control
Systems

Traction

Industry

DC powertransmission

Renewable energy

Inverters/servos

Air-conditioning& Refrigeration
Systems
Life

Building
Systems

Infrastructure

Contribute to a decarbonized society©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi ElectricIndustry

Infrastructure

xEV/
ADAS

Highly relevant SDGs

Mobility8

2©Mitsubishi Electric Corporation

Medium-term Management Planof Key Growth Businesses

9

2-1

©Mitsubishi Electric Corporation

Market Environment

10

2-1

Business Environment

Power Device Market Outlook
Approx. 12% CAGR in FY2020-2025 growth is expected with the progress of xEVs forautomotive and inverters for consumer equipment.
(¥ Billion)

FY2020~25 market
CAGR*¹：12％

FY2020~25 outlook
Automotive：
Approx. 23% high CAGR growth by
the progress of xEVConsumer：Approx. 6% CAGR growth by the
expansion of inverters
Industry, renewable energy, traction：
Approx. 6% CAGR growth by the
progress in energy saving andautomation

Market size of IGBT modules by field (our estimate)©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric*¹ CAGR：Compound annual growth rate

11

2-2

©Mitsubishi Electric Corporation

Growth Strategy

122-2-1

Overall overview

G r o w t h Ta r g e t s

FY2020 Actual

FY2021 Plan

FY2025 Target

Revenue¥148Bn.

¥184Bn.

¥240Bn. or more

OPM

0.4%

5%

10% or more

Business Strategy

Expected to expand in the medium term in each field. Focusing on the automotive field,
where high growth is expected, and the consumer field where we are strong, while
using the industrial, renewable energy and traction fields as base roads.
¥240Bn. or more
¥184Bn.
(¥ Billion)¥148Bn.

Automotive

Expand from
50% to 65%
in focus fields

ConsumerIndustrial, renewableenergy, traction, etc.

©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Revenue by field13

2-2-1

Overall overview

Market Outlook by Field and Our Measures
Automotive＜Business environment＞
・Expected to grow rapidly due to xEV＜Our Measures ＞
・Capture with strategic products achieved significant
size and mass reduction
・Accelerate and strengthen SiC to meet diversifying
customer needs

Industrial, renewable energy＜Business environment＞
・Demand for capital investment for automation etc.,
currently strong, will maintain over the medium tolong term
・Renewable energy market also expands significantly＜Our Measures ＞
・Strengthen large and medium capacity lineup we aregood at・Strengthen small capacity lineup mainly byVincotech*¹

Consumer＜Business environment＞
・Inverters for home appliances continue to grow andstrong demand continues＜Our Measures ＞
・Strengthen product performance and maintain top
position in the air conditioner market
・De facto standardization with strategic products for
new markets such as air conditioner fans, washingmachine fans and refrigerators

Traction, electric power＜Business environment＞
・Strong demand for traction continues in the medium
to long term
・High voltage direct current(HVDC) market isactivating for electric power＜Our Measures ＞
・Strengthen mainly large capacity lineup we are goodat, including SiC

14*¹ Vincotech：Our affiliated company©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric142-2-2

Consumer Segment

M a r k e t Tr e n dExisting room air conditioner market(for compressors), the core, is steadily expanding due totightening of energy saving regulations.
Applications with small current capacity, such as air conditioner fans, washing machine fans andrefrigerators, are expanding as a new market, as inverters are expected to be used for.
Consumer market FY2021~25 outlook

Sales quantity and inverter rate transition ofroom air conditioners and washing machines(M units)

77%

85%

(¥ Billion)

Red：Inverter conversion rate
Room air conditioner sales quantity: with inverter: others(M units)

43%

57%

IGBT module consumer market size
(Our estimate)

Source：Fuji Keizai CO.,LTD., February 2021
(Global Home Appliance Market
Research 2021)©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Washing machine sales quantity15

2-2-2

Consumer Segment

Our Achievements
In early days, introduced market compact design high performance, high quality transfer-molded
IPM. Optimal package, implements peripheral parts, realized easier and more compact customer
design. De facto standardization by being adopted by many customers. Since then, continued to
evolve and have market leading IPM products.
DIPIPM™での差別化
Differentiation
by DIPIPM™*²

DIPIPM™ evolution
De facto standardization
Outline dimensions

Gate driver IC and protective parts

Functions
Mass：54g → 10g
Surface area：- 63%
Loss：-17%

IGBT、FWD*³

Bootstrap diode, resistor

Customer needs
Compact design

Our strengths

Pin assignment

Awarded Okochi Memorial
Technology Award in 2006
Achieved compact design, highperformance and high quality IPM withtransfer-mold technology and optimized
various functions.

Small size : Thinner chip, optimized package

Low power
consumption

High performance(low loss): High chip efficiency(improvement in loss)
Optimized driving(fine control by built-in driver IC)

Improved durability

High quality : Countermeasures to temperature(high heat dissipation material,high heat resistant resin)*¹IPM : Intelligent Power Module©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric*²DIPIPM™ : High performance module with built-in drive circuit and protection circuit in IGBT*³FWD : Free Wheeling Diode16

2-2-2

Consumer Segment

I n i t i a t i ve s f o r F Y 2 0 2 5 ( Ai r C o n d i t i o n e r C o m p r e s s o r M a r k e t )In the existing market(air conditioner compressors), maintain position and improvecommercial growth by strategic products with further compact design, while keeping
higher performance and high quality.
RC-IGBT*¹ has approx. 30% low loss*² compared to competitor due to our unique chip
performance improvement technology. Continue to evolve products and lead the industry.
Strategic product
SLIMDIP™

Ratio of strategic products：
FY2020:35％ ⇒ FY2025:70％

70%
35%

Product ratio transition©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Target market

Key technology

Providing distinctive products

Air conditioner
compressor(existing)

Adopt our unique
RC-IGBT structure,insulating material

・Compact design(surface area :-33% to conventional product)
・Low loss(approx. -30% tocompetitor products)＜Existing market(Air Conditioner Compressor) ＞
Our product line-up

ReduceFull SiC
DIPIPM™
Expansion of
inverterCompact design
conversion
ratio Ultra compact
SLIMDIP™
DIPIPM™

Expanding demand

What is RC-IGBT?

Diode

IGBT

Shrink

RC-IGBTIGBT and diode are within 1 chip.
More compact design possible
while maintaining performancesuch as heat dissipation.

*¹RC-IGBT: Reverse Conducting Insulated Gate Bipolar Transistor*²Our estimate17

2-2-2

Consumer Segment

I n i t i a t i ve s f o r F Y 2 0 2 5 ( N e w M a r k e t )For new markets such as air conditioner fans, washing machine fans and refrigerators, etc., wehave already introduced surface mount type strategic product, easier for customers to handle.
Customer board surface area can be reduced by around 10% compared to other company’s
products. It has also been decided to be adopted by major customers, aiming to create
another de facto standard.
Target market

Key technology

Air conditioner fans,washing machinefans and refrigerators,
etc., (new market)

・Surface mount while maintaining
SLIMDIP™ functions
・Differentiation by optimally
implementing peripheral parts

Strategic product
SOPIPM™

Ratio of strategic products：
FY2020:35％ ⇒ FY2025:70％

70%
35%

＜New market＞
Air conditioner fans, washingmachine fans and refrigerators, etc.
Expansion of
inverterconversion
ratio

SOPIPM™
De facto
standardization

Product ratio transition©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Expanding demand

Providing distinctive
products
Surface mount typewhile implementing
peripheral functions

Customer board image
with SOPIPM™ (image)With othercompany’s
product

Approx.10%
smaller*Our estimate

Contribute to compact
customer board byimplementing
peripheral parts18

2-2-3

Automotive Segment

M a r k e t Tr e n dHigh growth can be expected in the automotive field(xEV) due to energy saving trend.
Market, will grow particularly by 2030, is for small/medium size EVs.
As for power devices, the use of Si and SiC will be promoted, according to diversifying customer
needs(motor output capacities).

SiC market
Sales quantity(million units)

Expansion of
SiC market

Possibility of early market
expansion of SiC, suitable for
reducing expensive batteries
and shorter charging time (byhigher voltage).
Si market©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Global xEV sales forecast(Source : LMC Automotive)

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2-2-3

Automotive Segment

Our Achievements

Realized earlier mass production of IPM for the automotive field by applying chips and packaging
technology cultivated in other fields. Continue to meet the needs of customers in the automotive
field with compact design, high performance utilizing SiC, and high quality and cumulative xEV
equipped with our power devices have become 19 million units.
Develop products, further refined with the knowhow gained from our achievement.
19 million units
Major achievements in our powerdevices(automotive field)

Cumulative xEV, equippedwith our power devices

Customer needs
Compact design ofengine room(power unit)
Extension of cruising range
Improved durability

Our strengths
Smaller size：Improved heat dissipation by our unique insulating
material and resin sealing
High performance(low loss)：High chip efficiency(Si loss
improvement, SiC)
High quality : Industry’s first DLB* adoption, and resin sealing*DLB :Direct Lead Bonding/ Connect the chip and the electrode without using wire bonds. The mounting module surface area can be reduced and durability is improved.

©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric（Million units）

FY1997：Mass production(MP) of IPM for automotive
FY2015：MP of cooling fin integrated type
FY2016：Commercialization of SiC power device
FY2020：Started MP of SiC products for automotive20

2-2-3

Automotive Segment

I n i t i a t i ve s f o r F Y 2 0 2 5Introducing strategic products significantly smaller and lighter, while maintaining highperformance and high quality. Superiority of our products has already been recognized, sales
expands due to increased number of adopted models from multiple customers.
Also working on new business negotiations for further expansion.
Key advantages of strategic products

Strategic products：J1*¹ Series

Ratio of strategic products：
FY2020:19％ ⇒ FY2025:47％

47%

Comparison between other company’s products*²（same capacity class product）

Heavy(Rear)

To company-B
Area : -13%
Mass : -56%

Mass

(Front)Newly adopted,-Latest generation thinned IGBT chip
-Case with integrated cooling fin structure

To company-B
Area : -30%
Mass : -56%

Our productArea ：129[cm²]Mass：350[g]

Light

19%

Small

Product ratio transition©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Mounting area*¹ J1: Power module for automotive*² Our estimate(FY2021)

Large
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2-2-3

Automotive Segment

Initiatives for Further Growth

Strengthen and accelerate initiatives for SiC to popularize xEV.
Strengthen business by properly using Si and SiC according to customer needs.

Strengths of our SiC
・Since the launch of the SiC power module in 2013, we haveaccumulated high-performance and high-reliability built-in
technology (screening technology, etc.), cultivated over many
years in the consumer, industrial, and especially traction fields.
Example: In case of inverter equipment for traction, while ensuring reliability, achieved
from conventional products, about "55% reduction in generation loss" and "65%reduction in volume and mass”.

Full SiC power module share(Our estimate FY2019)

・Realized further compact design by SBD*¹ built-in MOSFET*²
Initiatives on SiC・Achieve further performance and productivity
Large EV/FCV
improvement by applying a unique manufacturing
SiC area
process to Trench MOSFET*³
Possibility ofMedium EV
・Considering 200mm wafers to improve productivity
SiC expansion
By offering lineup of modules implement Si chips /SiC chips, we can meet the diverse customer needsfrom small to large size.
*¹ SBD : Schottky Barrier Diode *² MOSFET: metal-oxide-semiconductor field-effect transistor*³ Trench MOSFET: MOSFET in which gate electrodes are embedded in trenches, dug from the surface of the wafer©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Small EV・HEV/PHEV
Si area
Expanding demand
Expansion of power device application in
the automobile field (image)22

2-2-4

Investment Plan

Capital Investment Plan
Wafer process capacity will be doubled by FY2025 compared to FY2020.
Also, invest on assembly and test process in a timely and appropriate manner to meet
future demand.
Capital investment (actual, plan)(¥ Billion)

Manufacturing factory (example: wafer process)Approx. ¥130 Billion

Approx. ¥100 Billion

Constructed 200mm line with improved production
efficiency at Fukuyama Factory.
Capital investment transition* A/T : Assembly and test
©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Test run starts in November and production
capacity will be gradually expanded.
Started construction of 300mm line.
23

2-2-4

Investment Plan

Production Capacity Enhancement (300mm Line)In response to increasing demand for power devices due to xEV growth and tightening ofenergy-saving regulations, we enhance wafer production capacity.
In addition to the expansion of the 200mm line, 300mm line production is also planned.
By improving the microfabrication technology, considering the 300mm line, we have further
evolved our unique CSTBT™* cell structure to develop high-performance products andrealize production line with high productivity.
About our 300mm line

Mass production timing：FY2024（target）
Location：Fukuyama Factory
Benefits of 300mm line
More chips per wafer by larger wafer diameter(more than double)
Realize highly productive line by automation

Si IGBT by CSTBT™
Wafer cross section (image)Achieves low loss by adding acarrier storage layer in the wafer

Furthermore, our unique differentiation(CSTBT ™ cell structure)
We have uniquely evolved CSTBT™ structure
to reduce loss and improve productivity
RC-IGBT is to be produced in 300mm line

Apply especially from the growing automobile and consumer fields, achieveenhanced production capacity and productivity.
©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric*CSTBT: Our unique IGBT utilizes carrier accumulation effect

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2-3

©Mitsubishi Electric Corporation

Initiatives on Social
Challenges

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2-3

Initiatives on Social Challenges

C o n t r i b u t e t o S o l v e S o c i a l I s s u e s To w a r d t h e R e a l i z a t i o n o f
Sustainability
Utilize IGBT / SiC cultivated through business synergies, we will contribute to a decarbonizedsociety by providing key devices that save energy in equipment.
■Materiality to realize
sustainability
Provide solutions
to social challenges
through ourbusiness

Realize a sustainableglobal environment

Strengthen our businessfoundation to enable oursustainable growth

Respect for all people

Power Device BusinessRealize a safe, secure,and comfortable society

Strengthen corporate
governance and complianceon a sustainable basis
Create a sustainability-oriented
corporate culture■Social Challenges
Mobility

Provide solutions to social challenges Realize a sustainable global environment
Realize a safe, secure, and comfortable society
through our business

Life

Zero traffic accidents
Enrich leisure time
HealthComfortable transport Eliminate regional disparities Comfortable life
Eliminate traffic congestion
Improve QOL of mobility impaired people
Reduce air pollution Build communities
Prepare for infectious diseases
Equal opportunity for education and training
Measures for deteriorating
Prevent global warming
Preserve the ecosysteminfrastructure

In addition to develop SiC, suitable for compact
design, high-speed and high-temperature
operation, we will leverage business synergies
to supply power devices as core componentsof each solution in four areas.

Mobility

Life

Infrastructure

Industry

Highly relevant SDGs

By providing products with better energy
efficiency, we will contribute to the realizationof a decarbonized society, which is a global
issue.

Avoid water shortage/ food shortage etc.
Prepare for natural disasters
Industry and technological innovation
Eliminate poverty/ inequalities
Clean water
Address labor shortage
Response to uneven distribution
Prepare for man-made threats
and depletion of resources

Infrastructure

Industry

Sustainable society©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric26

Cautionary Statement

While the statements herein including the forecast of the Mitsubishi Electric Group are based on assumptions the Group considers to
be reasonable under the circumstances on the date of announcement, actual results may differ significantly from forecasts.
Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:
1.
2.
3.
4.

Any change in worldwide economic and social conditions, as well as laws, regulations, taxation and other legislation
Changes in foreign currency exchange rates, especially JPY/dollar rates
Changes in stock markets, especially in Japan
Changes in balance of supply and demand of products that may affect prices and volume, as well as material procurement
conditions
5. Changes in the ability to fund raising, especially in Japan
6. Uncertainties relating to patents, licenses and other intellectual property, including disputes involving patent infringement
7. New environmental regulations or the arising of environmental issues
8. Defects in products or services
9. Litigation and legal proceedings brought and contemplated against the Company or its subsidiaries and affiliates that may
adversely affect operations or finances
10. Technological change, the development of products using new technology, manufacturing and time-to-market
11. Business restructuring
12. Incidents related to information security
13. Large-scale disasters including earthquakes, typhoons, tsunami, fires and others
14. Social or political upheaval caused by terrorism, war, pandemics, or other factors
15. Important matters related to the directors and executive officers, major shareholders and affiliated companies of Mitsubishi
Electric Corporation©Mitsubishi Electric Corporation

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