Core competence

1

2
Unifying thinking

3

Developing strengths(invisible assets)

4
Picturing the desired futureenvironmentally friendly power supply technologies.
The range of applications has expanded. We provide power
supplies for surface treatment, arc generators for welding
machines, power supplies for lighting equipment and otherequipment, various power conditioners and power supplies
for the evaluation of environmentally friendly equipment andequipment applying new energy and highly reliable andcustomized power supplies which continue to stably support
electronic equipment.

Concept behind the intellectual property strategy

Employee invention incentive program

We believe that the unique qualities of the Sansha Electric
Manufacturing Group lie in the support for the natural environmentand social environment that we provided leveraging ourtechnological strengths, with our intellectual property strategy
built on our sales strategies reflecting our understanding of“technology strategy, management strategy and partners’
strategies,” based on the Global Power Solution Partner concept.
Therefore, in our intellectual property strategy, we position
intellectual property as management resources for protecting
customers’ markets and achieving goals together with them,and our activities are focused mainly on creating and maintaining
competitiveness. In addition, we will strive to maintain and improve
our corporate value and brand through these high-quality initiatives.

We have an employee invention incentive program aimed at
encouraging engineers to develop inventions and at supporting
corporate development and the improvement of individuals’ skills
by protecting and utilizing their inventions.

Intellectual property activities

Core technologies
Core technologies and advantages
We have been engaged in the manufacturing of power
semiconductors for 60 years. We are able to boast to the worldabout the high reliability of our packaging technologies that areused for the servo drivers of machine tools, which must havehigh capacity to endure repeated charging, as well as welding
machines and PV junction boxes.
What constitute the design and manufacturing of power
supplies, which consist of devices and control technologies,
are exactly the power electronics technologies that have been
attracting attention in recent years as part of national strategies.
The power supplies manufactured by the Sansha Electric
Manufacturing Group incorporate high-speed digital control
technologies. Highly responsive and precise, they are praised by
the industry. In addition, their environmental durability, which was
fully developed on plating and welding work sites, enables them
to be utilized in many settings.

Competitive
advantages
Electric power and energy
conversion technologies> High-efficiency
conversion
technology> S table supply ofenergyCore technologies
Powersemiconductors

At the Sansha Electric Manufacturing Group, we pursue
research into technologies to further improve the reliability andheat resistance of power modules in high voltage and capacity
ranges, new bonding technologies, the expansion of applicationsfor SiC devices and next-generation semiconductors, to supportsocial infrastructure.
Further, we will realize electric power conversion technologies
that will enable high-speed, high-precision control in addition
to compact dimensions and high efficiency. By applying
communication and system technologies, we will enable
electric power converters to evolve so that they can connect toperipheral equipment.
As an initiative to remain our customers’ solution partner, we
will use AI in our R&D processes and work on DX and automationin our efforts to reduce development lead time.

19

1

Actively obtain intellectual property rights for inventions such as
innovative new technologies and original designs.

2

File applications to secure international intellectual property rights
and maintain, manage and control them in accordance with theglobal strategy.

3

To expand business in emerging countries, continuously collectinformation on counterfeit products to take appropriate measures toaddress them.

Competitive advantages> Improvement of energy
efficiency>P roprietary packaging
technologies>H igh voltage resistance andlow loss

Research and development expense(Million yen)

2,000

1,576
1,204

1,223

1,700

1,250

1,000

0
2019

2020

2021

2022

2023
Plan

Applications for and ownership ofintellectual property rights
Number of applications
30
20

12

10

17

19

2019

2020

24
13

14

2021

2022

0

2018

2023

(FY)

TargetData covers Sansha Electric Manufacturing Co., Ltd.

Number of patents owned(patents)

400
300
200

347

343

337

336

319

42
30
47
62

52
30
48
58

53
29
49
55

55
28
47
49

44
26
43
48

OthersSouth Korea
China
UnitedStates

156

155

161

157

158

Japan

100
0

2018

2019

2020

2021

2022

(FY)

Data covers Sansha Electric Manufacturing Co., Ltd.

Supply chain management> Stability of power supply

Research and development
Development themes and investment policy

The Group implements initiatives to increase its competitiveness,starting from increasing intellectual property awareness andproactively obtaining intellectual property rights to achievements
made through various R&D efforts and analyses and protecting
and controlling intellectual property rights.

Control technologies
Competitive advantages

Developing strategies, acting andrepeatedly evaluating and improving

Intellectual property

Manufacturing that we willcontinue to refine
We were the first to use semiconductors in power supplies formovie projectors. This was the first product we manufactured
after our founding. We have been contributing to the movie
industry by using electronic control to provide stable lightsources. Further, we succeeded in the in-house production of asemiconductor with applications in plating rectifiers and welding
machines, thus contributing to the development of industry inJapan as well as Osaka. Currently, we continue to hone thetechnologies developed in those days and we are a leader in

5
Evaluation analysis for achieving the vision(FY)

The Group carries out sustainable procurement activities
throughout its supply chain to operate its business, which
encompasses an extensive lineup of products all over the world.
For this purpose, we ask suppliers to understand and comply
with our Procurement Policy, which stipulates the observanceof laws, ordinances and social norms, consideration of humanrights and industrial safety, use of conflict-free minerals,consideration of the environment and the upholding of othersocial responsibilities.
In addition, we impartially evaluate and choose suppliers inaccordance with the criteria below.

Procurement
Policy1

We will observe laws, ordinances, social norms andequivalence and place importance on human rights
and the environment.

2

We will offer fair transaction opportunities tosuppliers.

3

We will carry out procurement activities based on
mutual understanding and relationships of trust with
suppliers.

1

Our suppliers must observe laws, ordinances, social norms and equivalence andplace importance on human rights and the environment.

Use of conflict-free minerals

2

Our suppliers must have a sound financial position and information management
systems.

3

Our suppliers must supply materials and services with an appropriate quality,
price and delivery lead time.

4

Our suppliers must have the ability to ensure stable supply and flexibly respondto changes in supply and demand.

5

Our suppliers must conduct value analysis (VA) and value engineering (VE)
activities* to achieve mutual prosperity.

The Group has drawn up the Sansha Electric Manufacturing
Group Conflict Minerals Response Policy. From a humanitarianpoint of view, we will not use any conflict minerals, such as tin,tantalum, tungsten or gold, that are produced using inhumane
practices in the Democratic Republic of the Congo and thesurrounding region.

6

Our suppliers must carry out risk management activities, such as business
continuity planning, under normal circumstances to hold a capacity to continue
supplying even in unexpected disaster or other extreme situations.

* Value analysis (VA): Activities reducing the cost of mass-produced products throughout
the entire value chain
Value engineering (VE): Activities thinking about the maximization of value from theprocess of product development (consideration of design)

Sansha Electric Manufacturing
Group Conflict

https://www.sansha.co.jp/csr/purchase.html

SanRex REPORT 2023

20

Core competence

1

2
Unifying thinking

3

Developing strengths(invisible assets)

4
Picturing the desired future

Solutions and quality thatare created because of theintegrated production structure
Integrated production system
Our power semiconductors supporting high voltage and current
are manufactured in an integrated production system including
wafer processing and package assembly. Power supply devices,
circuit boards and other components are manufactured in an
integrated production system that includes development, design
and manufacturing. This enables us not only to provide standard
products but also to quickly deliver products which are speciallycustomized to cater to customer needs.
The Sansha Electric Manufacturing Group develops, designs
and manufactures both power semiconductors and power
supplies. This has made us very familiar with how power
semiconductors are used in power supplies. That allows us tocreate proposals that are highly efficient, safe, and best suited tothe specific environment the customer will use them in, including
peripheral circuits.
We believe that maintenance is a vital part of ensuring thesafety of power supplies. We are ready to provide one-stop
support including efficient installation, operation, maintenanceand replacement. Please watch the video, which mainly
introduces the manufacturing processes at the Okayama Plant(semiconductors) and the Shiga Plant (power supplies).

5

Developing strategies, acting andrepeatedly evaluating and improving

Evaluation analysis for achieving the vision

Quality management
The Group implements quality management attachingimportance to increasing customer satisfaction and social
value. We strive to create more value by appropriately managing
products’ safety, environmental performance, service life,
maintainability and other elements, in addition to achieving
product specifications, such as specifications for functionality
and operability. Quality management is implemented by allorganizations of the company and quality improvement activities
are carried out continuously via management circles.
An important feature is that information can be sharedseamlessly between the power semiconductor business andpower supply business that uses power semiconductors.
This has resulted in our skills for appropriately assuring quality

and our after-sales services, in addition to sales activities anddevelopment and design in both businesses.
In addition, we focus on quality in all phases, from productplanning to development, design, manufacturing and after-sales
services and we provide feedback using the quality informationcollected by each section to the departments that need suchinformation. This is how we improve product quality, with thegoal of achieving sustainable growth.
Further, we have internal plants making plates, transformers,
harnesses, printed circuit boards and other parts. This enables
us to demonstrate our comprehensive ability to ensure highquality, which is our strength. We internally manage the quality ofparts in our efforts to improve the quality of products as a whole.

Quality assurance system diagram
Customers and markets

Our plants
https://www.sansha.co.jp/eng/company/factory/

Corporate Philosophy, Management Policy and Quality Policy
Customerneeds

Strengths of the integrated production system

Receipt ofan orderDevelopment
and design

Manufacturing
Process inspection

Design review

Stable quality

Customization

Quality checks are
conducted in all processes tomaintain stable quality.

Marketresearch

Quick delivery

To respond to diverse needs, we
propose solutions to customers fromthe perspectives of high efficiency,
safety and other perspectives.

The time from production to delivery
is shortened by streamlining the
production process.

Product planning

Prototyping

Raw material
procurement

Design verification

AcceptanceinspectionThe
customers’
voicesShipping
inspection

Shipping

Setup,
maintenance,
inspection andafter-sales
services

The customers’
voices

Sharing of information

Product Quality Assurance Department

Sansha Electric Manufacturing Group Quality Policy

Power semiconductor manufacturing processes
Front-end processes

Oxide film
formation

Lithography

Etching

Forming a film on
a semiconductormaterial wafer

Transferring thesemiconductor device
pattern to the wafer

Processing thinfilms using chemical
reactionsBack-end processes

1

Impurity
diffusion

Wafer
inspection

Solderingprocess

Molding
process

Examination
process

Creating an N-type or
P-type semiconductor
area by adding an
impurity (such as
boron or phosphorus)
to the wafer

Measuring film
thickness anddimensions, screening
and detecting foreign
substances anddefects, examining
appearance
and examining
characteristics

Melting the solderusing heat and joining
metallic parts together

Encapsulating thesemiconductor in resin
to prevent physicalcontact with external
objects, contaminationand other problems

Examining the
product’s appearance,
characteristics andother aspects of the
product• Arranging electronicparts on the printed
circuit board andsoldiering them to the
board

21

Wire harness
manufacturing
processCasemanufacturing
process• Stamping wiringlocations on electric
wires using a fully
automated wire
processing system• Bundling wires by
converting a threedimensional productinto a planar form

• Cutting the plate,bending it at predetermined angles
and welding parts• Finishing the case bypolishing the weldedparts to prevent
distortion

Comply with related laws,
regulations and social norms.

2

Customersatisfaction

Make customer satisfaction
the top priority and respondto the demand generated bysociety leveraging the highlevel technological capabilities
we have accumulated andstrive to improve customer
satisfaction.

3

Qualitysystem4

Refine quality withan integrated system
including productplanning, development,
order acceptance, design,
manufacturing and aftersales services to deliver
reliability to customers.

Company-wide
activities for quality
improvement

Work together company-wide
to improve quality throughbusiness improvement
activities, the development of
human resources and S-PS
activities,* which are smallgroup activities unique to ourcompany.

5

Continuous improvementof the quality
management system

Establish a quality management
system adapted to social
environment and management
environment and continue toimprove it.

*SanRex Producer System activities

Power supply manufacturing processes

Process ofmounting parts
onto printed
circuit boards

Compliance withlaws and regulations

Proposing solutions to customer issues

Coating process• Coating the surfaceof the case with apowder and applying
heat to form a film

Transformer
manufacturing
process• Creating a copper
winding wire andwinding it around aniron core• Covering the winding
wire with an insulating
material after thewire has been woundaround an iron core

Assembly process
A cell production
system is used forlarge products. A line
production system isused for small products.

Examination
process
Examining appearance
and structure andconducting withstandvoltage tests, insulation
resistance measurement
tests, electriccharacteristic tests andother tests

The Group conducts the integrated production of highvoltage and large-current power semiconductors and power
supplies. This means that we internally conduct all processes
ranging from wafer processing to package assembly for power
semiconductors and every process from the development anddesign of circuit boards to their assembly for power supplies.
This allows us to provide customers with the proposals that are
best suited to their needs from the perspective of high efficiency,
safety and other features.

The medium-term management plan states that one of thepriority measures for the power supply business is to accelerate
the proposal of systems that combine power conditioners withstorage batteries and network functions, rather than proposals
related to power conditioners alone. A strength of the Group is
the flexibility of its development and manufacturing. We will help
customers solve their problems by proposing systems based on
this strength.

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Core competence

1

2
Unifying thinking

3

Developing strengths(invisible assets)

4
Picturing the desired future

5

Developing strategies, acting andrepeatedly evaluating and improving

Evaluation analysis for achieving the vision

Test equipment that contributes to product quality

Total solution services deliver safe and secure power supplies

To deliver reliable, satisfactory products to customers, we have installed and use a variety of test equipment to maintain the safety ofour products and improve their quality.

Sansha Solution Service Co., Ltd., a maintenance service
company of the Sansha Electric Manufacturing Group, caters
to customer needs with one-stop services including the
installation of power supply equipment as well as the operation,
maintenance and replacement of equipment under its policy ofproviding services which support the stable operation of power
supply equipment.
Sansha Solution Service is implementing four priority
measures in the medium-term management plan to enhance
the total solution services of the Sansha Electric Manufacturing
Group.

Example test equipment

Electromagnetic anechoic chamber andsealed room
In accordance with IEC standards (international
standards for all electrical, electronic and related
technologies) and other standards, we measureelectromagnetic waves to see if our products affectother electric equipment and for other purposes.

Power supply maintenance and inspection services

Four priority measures under the
medium-term management plan

1 I mprove quality of services

Software testing system
Previously, it was necessary to assemble hardware when verifying software. The introduction of thissystem enables us to test software without assembling hardware. We use this system to improve theefficiency of software development and improve quality.

2 Accelerate construction of themaintenance structure

3 E nhance the construction work

implementation structure

Environmental test room
We conduct environmental performance tests tocheck our products’ tolerance to low temperatures,
high temperatures and high humidity.

4 Propose long-term service plans

FY2022 Initiatives

Achievements

Issues• Increase service staff and sign contracts
with new service partners to improve theservice structure• Signed consignment contract with a newpartner company• Develop service staff at the newpartner company• Train service staff to develop their skills• In FY2022, group training for service staff wasprovided three times• Provide training continuously toenable the establishment of thecontent of the training program• Build a system for preventing mistakes
in work• Released an electronic form system in
September 2022, aiming to standardize
inspection work

• Enhance the electronic form system• Carry out a demonstration trial of theremote maintenance system• Installed remote systems in already-delivered
uninterruptible power supplies and confirmedthat it is possible to check the condition of
local areas and receive abnormality alerts• Maintenance proposals need tobe submitted at the time of theinstallation and introduction.

• Increase staff qualified as construction
management engineers for construction
work• Increased the number of technicalsupervisors to 9 and the number of class-1
electrical supervising engineers to 12• Establish a structure for expanding
construction work

• Propose long-term maintenance services
for a recommended operation period fromthe start of operations• Long-term service plans were developed forinverters and other products delivered in thepast ten years.

• Propose long-term service plans• Improve services for large power
supplies

Sansha Electric Manufacturing Group’s comprehensive solution services

S-PS activities

Operations of Sansha Solution Service Co., Ltd.

Since 1970, we have been engaged in QC circle activities called
the SanRex Producer System (S-PS) activities. S-PS activities
are based on QC circle activities and incorporate the policiesof the company’s organizations. Through these activities, we
encourage employees to identify and solve problems andpractice and learn methods for improving, in our efforts toimprove their ability to execute business and further, to develop
next-generation leaders. Another goal of these activities is tocontribute to the establishment of rewarding workplaces withpositive atmospheres.
We hold a conference for presenting achievements twice ayear. During the conference, awards are granted for excellent
activities selected based on the recommendations of thechairperson of the S-PS Activity Promotion Committee.

Construction
management

Sansha Electric
Manufacturing Co., Ltd.

Work tendered

Sales
department
Receipt oforder

Emergency private
power generation
Product sales

Customers
DeliveryTechnology andmanufacturing
department
Production

Trial
operation

Inspection andoverhaulReplacement
work
Battery
replacement

Equipment monitoring

Commissioned
work

S-PS activities presentation conference

23

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