Denso has unveiled ambitious plans to invest approximately 500 billion yen
Denso, a prominent Japanese automotive supplier with a strong affiliation to the Toyota Group, has unveiled ambitious plans to invest approximately 500 billion yen, equivalent to $3.3 billion, in semiconductor development by 2030. This strategic initiative aims to triple the scale of Denso’s semiconductor business by 2035, surpassing its current size. The announcement was made by Denso’s President, Shinnosuke Hayashi, during the Japan Mobility Show, an event focused on the evolution of mobility technologies.
Denso has been diligently expanding its semiconductor business in recent years, actively seeking partnerships to secure a steady supply of semiconductors. In collaboration with Sony, Denso is taking a stake in a chip plant being constructed in Japan by Taiwan Semiconductor Manufacturing Co. This move underscores the semiconductor industry’s growing importance, driven by the transition to electric vehicles (EVs) and the increasing demand for “connected cars.”
Shinnosuke Hayashi emphasized the necessity of stabilizing material procurement to facilitate the expansion of semiconductor production. Denso is committed to forming strategic partnerships with various companies to achieve this goal. Moreover, the company plans to augment its workforce by hiring specialists in electrification and software development. In addition to external hiring, Denso intends to reassign existing staff from mature business sectors to focus on electrification and software development.
Denso’s significant investment in semiconductor development reflects the evolving landscape of the automotive industry, driven by the rapid shift toward electric vehicles and the integration of advanced software and connectivity features in modern vehicles. As a key player in the automotive supply chain, Denso is taking proactive steps to address the semiconductor shortage challenge and ensure a sustainable and prosperous future in the automotive technology sector.