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Mitsubishi Electric Corporation announced its consolidated financial results for the first 9 months and third quarter, ended December 31, 2023, of the current fiscal year ending March 31, 2024 (fiscal 2024).
Consolidated First 9 Months Results (April 1, 2023 – December 31, 2023)
Revenue: 3,782.4 billion yen (6% increase year-on-year) Operating profit: 222.3 billion yen (36% increase year-on-year) Profit before income taxes: Net profit attributable to 249.0 billion yen (32% increase year-on-year) Mitsubishi Electric Corp. stockholders: 186.0 billion yen (34% increase year-on-year) The economy in the first 9 months of fiscal 2024, from April through December 2023, continued to see moderate recovery in Japan, however, recovery in consumer spending and capital expenditures came to a standstill recently. In the U.S., the economy continued to see recovery primarily in consumer spending despite monetary tightening and other factors. In China, the economy showed weakness in recovery due to sluggish export as well as slower domestic demand resulting from the real estate recession and other factors. In Europe, there were slowdowns in the corporate and household sectors due primarily to monetary tightening.
Revenue
Revenue increased by 217.1 billion yen year-on-year to 3,782.4 billion yen due primarily to the weaker yen and price hike. The Life segment saw an increase in the building systems business in Asia (excluding China), Japan and Europe, and the air conditioning systems & home products business also increased primarily in the first half of fiscal 2024 due to robust demand for air conditioners.
The Industry & Mobility segment saw a decrease in the factory automation systems business due mainly to a decline in demand for digital equipment and for products in the decarbonization area such as lithium-ion batteries, while the automotive equipment business saw increases primarily in electric vehicle-related equipment and electrical components.
In the Infrastructure segment, the public utility systems business saw increases in the transportation systems and public utility businesses worldwide. The energy systems business saw increases in the power distribution business worldwide and the power generation business outside Japan, and the defense & space systems business also increased due to large-scale projects for the defense systems and space systems businesses.
The Semiconductor & Device segment increased due to robust demand for power modules. The Business Platform segment saw increases in the system integrations and IT infrastructure service businesses.
Operating profit
Operating profit increased by 59.1 billion yen year-on-year to 222.3 billion yen due to increases in the Life, Industry & Mobility, Infrastructure and Business Platform segments, despite a decrease in the Semiconductor & Device segment. Operating profit ratio improved by 1.3 points year-on-year to 5.9% due mainly to an improvement in cost ratio.
The cost ratio improved by 1.9 points year-on-year due primarily to the weaker yen and price hike. Selling, general and administrative expenses increased by 66.4 billion yen year-on-year, and the selling, general and administrative expenses to revenue ratio deteriorated by 0.4 points year-on-year. Other profit (loss) decreased by 6.1 billion yen year-on-year, and other profit (loss) to revenue ratio deteriorated by 0.2 points year-on-year.
Profit before income taxes
Profit before income taxes increased by 59.9 billion yen year-on-year to 249.0 billion yen due primarily to an increase in operating profit. The profit before income taxes to revenue ratio was 6.6%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 46.7 billion yen year-onyear to 186.0 billion yen due mainly to an increase in profit before income taxes. The net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 4.9%.
Consolidated Financial Results by Business Segment (First 9 Months, Fiscal 2024)
Infrastructure
Revenue: 659.7 billion yen (7% increase year-on-year; recorded 614.6 billion yen) Operating profit: 2.1 billion yen (14.4 billion yen improvement year-on-year; recorded a loss of 12.2 billion yen) The market for the public utility systems business continued to see recovery in the global demand for the transportation systems area and robust investment in the public utility area worldwide. In this environment, orders won by the business increased year-on-year due primarily to increases in the transportation systems business worldwide and the public utility business outside Japan. Revenue also increased year-on-year due primarily to the weaker yen and increases in transportation systems and public utility businesses worldwide.
The market for the energy systems business continued to see capital expenditures of power companies in Japan and robust demand mainly for power supply stabilization worldwide in the expansion of renewable energy. In this environment, orders won by the business increased year-on-year due primarily to increases in the power generation business in Japan and the power distribution business worldwide. Revenue also increased year-on-year due primarily to the weaker yen and increases in the power distribution business worldwide and the power generation business outside Japan.
The defense & space systems business saw an increase in orders year-on-year due to an increase in large-scale projects for the defense systems business. Revenue also increased year-on-year due to an increase in largescale projects for the defense systems and space systems businesses.
As a result, revenue for this segment increased by 7% year-on-year to 659.7 billion yen. Operating profit improved by 14.4 billion yen year-on-year to 2.1 billion yen due primarily to a shift in project portfolios and the deterioration in profitability in the defense & space systems business in the previous fiscal year.
Industry & Mobility
- Revenue: 1,272.8 billion yen (5% increase year-on-year; recorded 1,212.2 billion yen)
- Operating profit: 94.7 billion yen (16.3 billion yen increase year-on-year; recorded 78.4 billion yen)
The market for the factory automation systems business saw a decrease in global demand for digital equipment such as semiconductors as well as for the decarbonization area such as lithium-ion batteries. In this environment, the business saw decreases in both orders and revenue year-on-year.
The market for the automotive equipment business saw a year-on-year increase in sales of new cars due mainly to an improvement in the supply of some semiconductor parts, and robust demand primarily for electric vehicle-related equipment in line with the expansion of the market centering on electric vehicles. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to increases in electric vehicle-related equipment such as motors and inverters, electrical components and advanced driver assistance system (ADAS)-related products in addition to the weaker yen and price hike.
As a result, revenue for this segment increased by 5% year-on-year to 1,272.8 billion yen. Operating profit increased by 16.3 billion yen year-on-year to 94.7 billion yen due primarily to the weaker yen and price hike, despite a shift in product mix, increased costs and other factors.
Life
Revenue: 1,519.4 billion yen (6% increase year-on-year; recorded 1,430.6 billion yen) Operating profit: 104.4 billion yen (33.6 billion yen increase year-on-year; recorded 70.7 billion yen) The market for the building systems business continued to see recovery in the global demand. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to the weaker yen and increases in Asia (excluding China), Japan and Europe.
The market for the air conditioning systems & home products business saw robust global demand for air conditioners due to decarbonization trends worldwide mainly in the first half of fiscal 2024. In this environment, the business saw an increase in revenue year-on-year due mainly to the weaker yen and price hike in addition to an increase in air conditioners in Europe and Asia.
As a result, revenue for this segment increased by 6% year-on-year to 1,519.4 billion yen. Operating profit increased by 33.6 billion yen year-on-year to 104.4 billion yen due primarily to the weaker yen, price hike and an improvement of logistics costs.
Business Platform
Revenue: 96.3 billion yen (5% increase year-on-year; recorded 91.4 billion yen) Operating profit: 5.4 billion yen (0.1 billion yen increase year-on-year; recorded 5.2 billion yen) The market for the information systems & network service business saw robust demand due to updates to legacy systems and digital transformation-related efforts. In this environment, the business saw an increase in orders due to increases in the system integrations and IT infrastructure service businesses. Revenue also increased by 5% year-on-year to 96.3 billion yen.
Operating profit increased by 0.1 billion yen year-on-year to 5.4 billion yen due mainly to an increase in revenue.
Semiconductor & Devices
- Revenue: 214.3 billion yen (3% increase year-on-year; recorded 208.8 billion yen)
- Operating profit: 24.6 billion yen (1.0 billion yen decrease year-on-year; recorded 25.7 billion yen)
The market for the semiconductor & device business saw robust demand for power modules used in railway & power transmission applications. In this environment, the business saw an increase in orders year-on-year due mainly to an increase in power modules used in railway & power transmission applications. Revenue for this segment also increased by 3% year-on-year to 214.3 billion yen due mainly to the weaker yen and an increase in power modules used in industrial and railway & power transmission applications.
Operating profit decreased by 1.0 billion yen year-on-year to 24.6 billion yen due mainly to increased costs.
Others
Revenue: 615.6 billion yen (1% increase year-on-year; recorded 609.4 billion yen) Operating profit: 21.9 billion yen (1.5 billion yen decrease year-on-year; recorded 23.4 billion yen) Revenue increased by 1% year-on-year to 615.6 billion yen due primarily to increases in materials procurement and software. Operating profit decreased by 1.5 billion yen year-on-year to 21.9 billion yen due mainly to a shift in project portfolios.
Consolidated Third-quarter Results (October 1, 2023 – December 31, 2023)
Revenue: 1,243.9 billion yen (1% increase year-on-year) Operating profit: 86.4 billion yen (5% increase year-on-year) Profit before income taxes: Net profit attributable to 89.2 billion yen (4% increase year-on-year) Mitsubishi Electric Corp. stockholders: 65.8 billion yen (2% increase year-on-year) Revenue
Revenue increased by 18.2 billion yen year-on-year to 1,243.9 billion yen due primarily to the weaker yen and price hike. In the Infrastructure segment, the public utility systems business saw an increase in the public utility business worldwide. The energy systems business saw increases in the power distribution business worldwide and the power generation business outside Japan, and the defense & space systems business also increased due to large-scale projects for the defense systems business.
The Industry & Mobility segment saw a decrease in the factory automation systems business due mainly to a decline in demand for digital equipment and for products in the decarbonization area such as lithium-ion batteries, while the automotive equipment business increased due to robust demand primarily for electric vehicle-related equipment and electrical components. The Business Platform segment saw increases in the system integration and IT infrastructure service businesses.
The Semiconductor & Device segment remained substantially unchanged year-on-year. The Life segment saw an increase in the building systems business in Japan, Asia (excluding China) and North America, while the air conditioning systems & home products business decreased due to a decline in demand for air conditioners.
Operating profit
Operating profit increased by 3.7 billion yen year-on-year to 86.4 billion yen due to increases in the Industry & Mobility, Infrastructure and Business Platform segments despite decreases in the Life and Semiconductor & Device segments. Operating profit ratio improved by 0.3 points year-on-year to 7.0% due mainly to an improvement in cost ratio.
The cost ratio improved by 1.4 points year-on-year due primarily to the weaker yen and price hike. Selling,
general and administrative expenses increased by 17.4 billion yen year-on-year, and the selling, general and administrative expenses to revenue ratio deteriorated by 1.1 points year-on-year. Other profit (loss) decreased by 2.2 billion yen year-on-year, and other profit (loss) to revenue ratio remained substantially unchanged year-on-year.
Profit before income taxes
Profit before income taxes increased by 3.2 billion yen year-on-year to 89.2 billion yen due primarily to an increase in operating profit. The profit before income taxes to revenue ratio was 7.2%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 1.3 billion yen year-onyear to 65.8 billion yen due mainly to an increase in profit before income taxes. The net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 5.3%.
Consolidated Financial Results by Business Segment (Third Quarter, Fiscal 2024)
Infrastructure
Revenue: 233.5 billion yen (10% increase year-on-year; recorded 212.6 billion yen) Operating profit: 11.0 billion yen (7.9 billion yen increase year-on-year; recorded 3.1 billion yen) The market for the public utility systems business continued to see recovery in the global demand for the transportation systems area and robust investment in the public utility area worldwide. In this environment, orders won by the business increased year-on-year due primarily to increases in the transportation systems business worldwide and the public utility business outside Japan. Revenue also increased year-on-year due primarily to the weaker yen and an increase in the public utility business worldwide.
The market for the energy systems business continued to see capital expenditures of power companies in Japan and robust demand primarily for power supply stabilization worldwide in the expansion of renewable energy. In this environment, orders won by the business decreased year-on-year due primarily to a decrease in the power generation business outside Japan, while revenue increased year-on-year due primarily to the weaker yen and increases in the power distribution business worldwide and the power generation business outside Japan.
The defense & space systems business saw increases in both orders and revenue year-on-year due to an increase in large-scale projects for the defense systems business. As a result, revenue for this segment increased by 10% year-on-year to 233.5 billion yen. Operating profit increased by 7.9 billion yen year-on-year to 11.0 billion yen due primarily to a shift in project portfolios and an increase in revenue.
Industry & Mobility
Revenue: 429.0 billion yen (3% increase year-on-year; recorded 417.2 billion yen) Operating profit: 44.8 billion yen (10.4 billion yen increase year-on-year; recorded 34.4 billion yen) The market for the factory automation systems business saw a decrease in global demand for digital equipment such as semiconductors as well as for the decarbonization area such as lithium-ion batteries. In this environment, the business saw decreases in both orders and revenue year-on-year.
The market for the automotive equipment business saw a year-on-year increase in sales of new cars due mainly to an improvement in the supply of semiconductor parts, and robust demand primarily for electric vehicle-related equipment in line with the expansion of the market centering on electric vehicles. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to increases in electric vehicle-related equipment such as motors and inverters, electrical components and ADAS-related products in addition to the weaker yen and price hike.
As a result, revenue for this segment increased by 3% year-on-year to 429.0 billion yen. Operating profit in the factory automation systems business decreased due mainly to a decrease in revenue, while operating profit in the automotive equipment business improved due primarily to an increase in revenue and the price hike. As a result, operating profit for this segment increased by 10.4 billion yen yearon-year to 44.8 billion yen.
Life
Revenue: 472.2 billion yen (4% decrease year-on-year; recorded 490.4 billion yen) Operating profit: 25.8 billion yen (10.8 billion yen decrease year-on-year; recorded 36.6 billion yen) The market for the building systems business continued to see recovery in the global demand. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to the weaker yen and increases in Japan, Asia (excluding China) and North America.
The market for the air conditioning systems & home products business saw a decrease in demand for air conditioners mainly in Europe and North America due primarily to stagnation in capital expenditures and housing starts. In this environment, the business saw a decrease in revenue year-on-year due mainly to a decrease in air conditioners in North America and Europe.
As a result, revenue for this segment decreased by 4% year-on-year to 472.2 billion yen. Operating profit decreased by 10.8 billion yen year-on-year to 25.8 billion yen due primarily to a decrease in revenue.
Business Platform
Revenue: 30.5 billion yen (5% increase year-on-year; recorded 29.0 billion yen) Operating profit: 1.5 billion yen (Substantially unchanged year-on-year; recorded 1.4 billion yen) The market for the information systems & network service business saw robust demand due to updates to legacy systems and digital transformation-related efforts. In this environment, the business saw a decrease in orders year-on-year due mainly to a decrease in the system integrations business, while revenue increased by 5% year-on-year to 30.5 billion yen due to increases in the system integrations and IT infrastructure service businesses.
Operating profit remained substantially unchanged year-on-year to 1.5 billion yen due mainly to a shift in project portfolios.
Semiconductor & Devices
- Revenue: 69.8 billion yen (1% decrease year-on-year; recorded 70.5 billion yen)
- Operating profit: 8.2 billion yen (2.6 billion yen decrease year-on-year; recorded 10.9 billion yen)
The market for the semiconductor & device business saw an increase in demand for power modules used in railway & power transmission applications, while demand for power modules used in consumer applications decreased. In this environment, the business saw a decrease in orders year-on-year due mainly to a decrease in power modules used in industrial and consumer applications, and revenue for this segment also decreased by 1% year-on-year to 69.8 billion yen.
Operating profit decreased by 2.6 billion yen year-on-year to 8.2 billion yen due mainly to a decrease in revenue and increased costs.
Others
Revenue: 207.0 billion yen (1% decrease year-on-year; recorded 209.7 billion yen) Operating profit: 8.3 billion yen (Substantially unchanged year-on-year; recorded 8.3 billion yen) Revenue decreased by 1% year-on-year to 207.0 billion yen due primarily to a decrease in logistics. Operating profit remained substantially unchanged year-on-year to 8.3 billion yen due mainly to a shift in project portfolios.
Financial Standing
An analysis on the status of assets, liabilities and equity on a consolidated basis
Total assets as of the end of this fiscal quarter increased by 212.6 billion yen compared to the end of the previous fiscal year to 5,795.2 billion yen. The change in balance of total assets was mainly attributable to increases in inventories by 129.1 billion yen and other financial assets by 101.3 billion yen.
Inventories increased due primarily to the weaker yen and a change in demand for the Industry & Mobility and Life segments as well as progress in job orders under pertinent contracts.
Total liabilities increased by 42.2 billion yen compared to the end of the previous fiscal year to 2,261.5 billion yen due primarily to an increase in bonds, borrowings and lease liabilities by 163.3 billion yen, despite a decrease in trade payables by 84.6 billion yen. Bonds and borrowings increased by 168.1 billion yen compared to the end of the previous fiscal year to 420.3 billion yen, with the ratio of bonds and borrowings to total assets recording 7.3%, representing a 2.8 point increase compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation stockholders’ equity increased by 165.5 billion yen compared to the end of the previous fiscal year to 3,404.5 billion yen due mainly to net profit attributable to Mitsubishi Electric Corporation stockholders of 186.0 billion yen and an increase in accumulated other comprehensive income of 103.8 billion yen, mainly reflecting the weaker yen and rise in stock prices, despite a decrease due primarily to a dividend payment of 96.9 billion yen. The stockholders’ equity ratio was 58.7%, representing a 0.7 point increase compared to the end of the previous fiscal year.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first 9 months of fiscal 2024 were 198.9 billion yen (cash in), while cash flows from investing activities were 199.0 billion yen (cash out). As a result, free cash flow was 0.0 billion yen. Cash flows from financing activities were 22.0 billion yen (cash out), and cash and cash equivalents at the end of the period decreased by 0.2 billion yen compared to the end of the previous fiscal year to 645.6 billion yen.
Net cash provided by operating activities increased by 230.6 billion yen year-on-year due primarily to an increase in profit and a decrease in payment for inventories.
Net cash used in investing activities increased by 73.1 billion yen year-on-year due mainly to increases in purchase of investment securities and others and purchase of property, plant and equipment despite an increase in proceeds from sale of investment securities and others.
Net cash used in financing activities increased by 22.8 billion yen year-on-year due primarily to an increase in purchase of treasury stock and a decrease in proceeds of short-term borrowings, despite an increase in the proceeds of bonds and long-term borrowings.
Forecast for Fiscal 2024
The consolidated earnings forecast for fiscal 2024, ending March 31, 2024, is unchanged from the announcement on April 28, 2023 as stated below.
Current consolidated forecast for fiscal 2024
Revenue: 5,200.0 billion yen (4% increase year-on-year) Operating profit: 330.0 billion yen (26% increase year-on-year) Profit before income taxes: Net profit attributable to Mitsubishi Electric Corp. 355.0 billion yen (22% increase year-on-year) stockholders: 260.0 billion yen (22% increase year-on-year) Exchange rates for this forecast in the fourth quarter are 145 yen to the U.S. dollar (5 yen weaker than the previous forecast), 155 yen to the euro (5 yen weaker than the previous forecast) and 20.0 yen to the Chinese yuan (unchanged from the previous forecast).
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced the coming release of six new J3-Series power semiconductor modules for various electric vehicles (xEVs), featuring either a silicon carbide metal-oxide semiconductor field-effect transistor (SiC-MOSFET) or a RC-IGBT (Si), with compact designs and scalability for use in the inverters of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). All six J3-Series products will be available for sample shipments from March 25.
The new power modules will be exhibited at the 38th Electronics R&D, Manufacturing and Packaging Technology Expo (NEPCON JAPAN 2024) from January 24 to 26 at Tokyo Big Sight, Japan, as well as other exhibitions in North America, Europe, China and additional locations.
As power semiconductors capable of efficiently converting electricity expand and diversify in response to decarbonization initiatives, the demand is increasing for SiC power semiconductors offering significantly reduced power loss. In the xEV sector, power semiconductor modules are used widely in power conversion devices such as inverters for xEV drive motors.
In addition to extending the cruising range of xEVs, compact, high-power, high-efficiency modules are needed to further downsize batteries and inverters. But due to the high safety standards set for xEVs, power semiconductors used in drive motors must be more reliable than those used in general industrial applications.
Development of these SiC products was partially supported by Japan’s New Energy and Industrial Technology Development Organization (NEDO).
Original – Mitsubishi Electric
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Coherent Corp. announced that it has closed the $1 billion aggregate investment by DENSO CORPORATION and Mitsubishi Electric Corporation in Coherent’s silicon carbide semiconductor business.
Under the terms of the transaction announced on October 10, 2023, DENSO and Mitsubishi Electric each invested $500 million in exchange for a 12.5% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. Coherent has separated and contributed the Business to a new subsidiary that will operate the Business. Going forward, all operating and capital expenses of the Business will be funded by the Business. Coherent will control and operate the Business, which will continue to be led by Sohail Khan, Executive Vice President, Wide-Bandgap Electronics.
In connection with the transaction, the Business has entered into arm’s-length long-term supply arrangements with DENSO and Mitsubishi Electric that support their demand for 150 mm and 200 mm silicon carbide (SiC) substrates and epitaxial wafers.
“As I mentioned in October, we are excited to expand our strategic relationships with DENSO and Mitsubishi Electric to capitalize on the significant demand for silicon carbide,” said Dr. Vincent D. Mattera, Jr., Chair and CEO, Coherent.
“I believe that such a close relationship with two leaders in SiC power devices and modules is the best path forward to maximize shareholder value and position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position, while ensuring the development of a robust and scalable supply for the rapidly growing market for SiC-based power electronics, largely driven by the explosive growth of the global electric vehicle market.”
“Through this strategic relationship with Coherent, we will secure a stable procurement of SiC wafers, which are critical for battery electric vehicles, and contribute to the realization of a carbon-neutral society by promoting the widespread adoption of BEVs in all regions around the world,” said Shinnosuke Hayashi, President & COO, Representative Member of the Board at DENSO.
Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device for Mitsubishi Electric, said, “We are pleased that this investment has been successfully completed. Going forward, we will further strengthen our collaboration with Coherent, leveraging their capabilities in development and manufacturing of SiC substrates, to achieve solid growth of our SiC power device business and contribute to a more sustainable world through decarbonization.”
When incorporated into electric vehicles and industrial infrastructure, SiC-based power electronics have demonstrated the potential to significantly reduce carbon dioxide emissions and accelerate the transition to a cleaner and more energy-efficient world.
Market estimates indicate that the SiC total addressable market will grow from $3 billion in 2022 to $21 billion in 2030, representing a 28% compound annual growth rate.
The transaction builds on Coherent’s more than two decades of demonstrated leadership in SiC materials. In recent years, the Company has aggressively invested to scale its manufacturing of 150 mm and 200 mm substrates to address this underserved market.
Over the past two years, Coherent has invested aggressively in capital and R&D for SiC. The closing of this $1 billion combined investment into the Business will accelerate the Company’s capital plans in the coming years. Specifically, the investment will fund the manufacturing expansion of the Business and, in combination with the concurrent supply agreements, enhance its position in the market.
The transaction enables Coherent to increase its available free cash flow to provide greater financial and operational flexibility to execute its capital allocation priorities, as it expects the aggregate $1 billion investment will be used to fund future capital expenditure requirements of the Business.
Original – Coherent
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Mitsubishi Electric Corporation announced that it will enter into a strategic partnership with Nexperia B.V. to jointly develop silicon carbide (SiC) power semiconductors for the power electronics market. Mitsubishi Electric will leverage its wide-bandgap semiconductor technologies to develop and supply SiC MOSFET chips that Nexperia will use to develop SiC discrete devices.
The electric vehicle market is expanding worldwide and is helping to drive the exponential growth of SiC power semiconductors, which offer lower energy loss, higher operating temperatures and faster switching speeds than conventional silicon power semiconductors. The high efficiency of SiC power semiconductors is expected to contribute significantly to global decarbonization and green transformation.
Mitsubishi Electric has established leading positions in applications such as high-speed trains, high-voltage industrial applications and home appliances. The company launched the world’s first SiC power modules for air conditioners in 2010 and became the first supplier of an all-SiC power module for Shinkansen bullet trains in 2015. Mitsubishi Electric has accumulated superior expertise for the development and manufacture of SiC power modules, which are known for their advanced performance and high reliability.
Going forward, Mitsubishi Electric expects to strengthen its partnership with Nexperia, a global leader with decades of experience in the design, manufacture, quality assurance and supply of diverse discrete devices. Nexperia’s devices are used in the automotive, industrial, mobile and consumer markets, contributing to decarbonization and a more sustainable future. Mitsubishi Electric will continue to improve the performance and quality of its SiC chips and focus on the development of power modules using proprietary module technologies.
Mark Roeloffzen, SVP & General Manager Business Group Bipolar Discretes at Nexperia, said: “This mutually beneficial strategic partnership with Mitsubishi Electric represents a significant stride in Nexperia’s silicon carbide journey. Mitsubishi Electric has a strong track record as a supplier of technically proven SiC device and modules. Combined with Nexperia’s high-quality standards and expertise in discrete products and packaging, we will certainly generate positive synergies between both companies – ultimately enabling our customers to deliver highly energy efficient products in the industrial, automotive or consumer markets they serve.”
Masayoshi Takemi, Executive Officer and Group President, Semiconductor & Device at Mitsubishi Electric, said: “Nexperia is a leading company in the industrial sector with proven technologies for high quality discrete semiconductors. We are delighted to enter into this co-development partnership that will leverage the semiconductor technologies of both companies.”
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced its consolidated financial results for the first half and second quarter, ended September 30, 2023, of the current fiscal year ending March 31, 2024 (fiscal 2024).
Consolidated Half-year Results (April 1, 2023 – September 30, 2023)
- Revenue: 2,538.4 billion yen (9% increase year-on-year)
- Operating profit: 135.8 billion yen (69% increase year-on-year)
- Profit before income taxes: 159.7 billion yen (55% increase year-on-year)
- Net profit attributable to Mitsubishi Electric Corp. stockholders: 120.2 billion yen (61% increase year-on-year)
The economy in the first half, from April through September 2023, of fiscal 2024 continued to see recovery primarily in consumer spending despite monetary tightening and other factors in the U.S. In Japan, the economy continued to see moderate recovery due to robust consumer spending and an increase in inbound tourists.
In China, the economy showed weakness in recovery due to sluggish export as well asslower domestic demand resulting from the real estate recession and other factors. In Europe, there were slowdowns in the corporate and household sectors due to monetary tightening and other factors.
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced that it played the key role in leading the project to draft the 2023 International Electrotechnical Commission (IEC) White Paper entitled “Power Semiconductors for an Energy-Wise society,” which the IEC released on October 17. This is the first time for a White Paper, published annually since 2010, to issue recommendations for developing and expanding international standards and certification systems for power semiconductors.
Each year, the IEC White Paper focuses on electrical, electronic and electromechanical technologies requiring international standardization, and makes related recommendations to the IEC and other organizations.
Power semiconductors, one of Mitsubishi Electric’s core product lines, are expected to continue to advance technologically and be increasingly adopted as key devices that reduce power consumption and efficiently convert electrical energy, supporting the global drive toward carbon neutrality by 2050.
New materials such as silicon carbide (SiC) are being used in advanced power semiconductors for applications such as renewable energy and electric vehicles (EVs), but the development of international standards and certification systems for such devices is lagging. A lack of such standards and certifications could lead to a proliferation of nonconforming products and impede cooperation among manufacturers, users and regulators, thereby hindering the healthy growth of the power semiconductor global market.
In response, Mitsubishi Electric initiated a White Paper project within the IEC Market Strategy Board (MSB) in October 2022. Together with experts from around the world, the project team addressed issues related to power semiconductor technologies, markets, and regulations.
The resulting White Paper summarizes the applications, sectors and technological trends of power semiconductors and highlights the need for the development, alignment, and expansion of respective international standards and certification systems. In particular, the White Paper focuses on the critical role that power semiconductor standards can play in helping to realize emission-free, carbon-neutral industries for a healthier and more prosperous world.
The main points of the 2023 IEC White Paper include:
- Current status and future trends of society, markets, and technologies related to power semiconductors and applications that are essential for realizing an “Energy-Wise society” in which energy is used wisely and efficiently.
- Challenges facing the power semiconductor industry and solutions for achieving carbon neutrality by 2050 through an integrated approach involving relevant regulatory, industry and international standardization organizations around the globe.
- Recommendations for international standardization bodies, particularly the IEC, to establish a roadmap and guidelines for the development of international standards and conformity assessment systems for power semiconductors.
The White Paper project team was led by Dr. Kazuhiko Tsutsumi, Mitsubishi Electric’s specially appointed technical advisor who also serves as IEC Vice President and Chair of the MSB, and included experts from Mitsubishi Electric’s Corporate Intellectual Property Division (Tokyo), Mitsubishi Electric’s Power Device Works (Fukuoka), Mitsubishi Electric Europe B.V. German Branch (Ratingen, Germany), as well as a team of international experts.
Going forward, Mitsubishi Electric will collaborate with power semiconductor companies, users, and regulatory authorities to establish a roadmap for the creation of power semiconductor international standards as recommended in the 2023 IEC White Paper, with the aim of promoting the healthy growth of the power semiconductor market in the quest for carbon neutrality by 2050.
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation has agreed with Coherent Corp. to invest USD 500 million in a new silicon carbide (SiC) business to be carved out from Coherent, aiming to expand its SiC power device business by strengthening vertical collaboration with Coherent, who has been a supplier of SiC substrates to Mitsubishi Electric.
The electric vehicle market is expanding worldwide and is one of several emerging applications driving the exponential growth of SiC power devices, which offer lower energy loss, higher operating temperatures and faster switching speeds than conventional silicon power devices. The high efficiency of SiC power devices is expected to contribute significantly to global decarbonization and green transformation.
Mitsubishi Electric has been a leader in SiC power modules for high-speed trains, high-voltage industrial applications, and home appliances for many years. The company made history by launching the world’s first SiC power modules for air conditioners in 2010, and became the first supplier of a full SiC power module for Shinkansen high-speed trains in 2015. Mitsubishi Electric has also accumulated extensive expertise by meeting market needs for advanced performance and high reliability by deploying superior processing, screening, etc. for the development and manufacture of SiC power modules.
Mitsubishi Electric has been procuring high-quality 150mm SiC substrates from Coherent for the production of SiC power modules for many years. In addition to developing high-quality 200mm SiC substrates with Coherent, Mitsubishi Electric plans to invest approximately 100 billion yen to construct a new 200mm SiC wafer plant in Kumamoto Prefecture, Japan beginning in 2026.
By further deepening its collaboration with Coherent through this investment, Mitsubishi Electric aims to stabilize its procurement of SiC substrates for SiC power modules, for which demand is forecasted to grow rapidly, and thereby expand its supply of reliable high-performance SiC power devices to meet rising global demand.
Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device of Mitsubishi Electric, said: “Demand for SiC power semiconductors is expected to grow exponentially as the global market for electric vehicles increases in line with the transition to a decarbonized world. To capitalize on this trend, we have decided to expand our SiC power semiconductor production capacity, including by constructing a 200mm wafer plant in the Shisui area of Kumamoto Prefecture. We are delighted to strengthen our partnership with Coherent by investing in this new SiC company, which will provide us with a stable supply of high-quality SiC substrates essential for our increased supply capacity.”
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation has completed installation of its first 12-inch silicon wafer processing line at its Power Device Work’s Fukuyama Factory, which manufactures power semiconductors. In addition, through sample production and testing, it has been verified that the power semiconductor chips processed on this production line achieve the required performance levels.
As previously announced, Mitsubishi Electric is planning to start mass production on the new 12-inch silicon wafer line in fiscal 2025. The company aims to approximately double its silicon power semiconductor wafer processing capacity by fiscal 2026 compared to fiscal 2021 levels.
In recent years, the demand for power semiconductors offering efficient control of electrical power is growing as countries look to achieve carbon-free status. Power semiconductors are utilized in wide range of relevant products, including electric vehicles, consumer devices (e.g. air-conditioning systems), industrial equipment, renewable energy and traction devices, and a stable supply is required in order to meet this growing demand.
Mitsubishi Electric will contribute to the realization of a carbon-free society through enhancement of its production capacity and by ensuring a stable supply of power semiconductors through the introduction of highly efficient 12-inch wafer production lines.
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced that it has taken an equity position in Novel Crystal Technology, Inc., a Japanese company that develops and sells gallium-oxide wafers, a promising candidate for use in superior energy-saving power semiconductors that Mitsubishi Electric intends to develop at an accelerated pace in support of global decarbonization.
Novel Crystal Technology, one of the world’s first companies to develop, manufacture and sell gallium-oxide wafers for power semiconductors, and now a leading producer of these products, has manufacturing technology that Mitsubishi Electric will use in its production of gallium-oxide power semiconductors.
Mitsubishi Electric has been contributing to energy savings in power-electronic products by producing semiconductors made of silicon and silicon carbide (SiC). Recent advances have been achieved with SiC and gallium-nitride wafers, but gallium-oxide wafers are expected to help achieve even higher breakdown voltages and lower power dissipation.
Mitsubishi Electric now expects to accelerate its development of superior energy-saving gallium-oxide power semiconductors by combining its own expertise in the design and manufacture of low-energy-loss, highreliability power semiconductors with Novel Crystal Technology’s expertise in the production of gallium-oxide wafers.
Original – Mitsubishi Electric
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Power semiconductors companies continue to invest heavily in new factories, production capacity expansions, and R&D centers. Thus, recently the total value of the active investment projects launched since 2021 has surpassed 70 billion USD.
Driven by the pandemic and geopolitics, major power semiconductors companies started to invest more in new factories and joint ventures to have more confidence in their own supply chain in the future.
As of today, it is obvious to see the major split of power semiconductors into three geographical regions – the USA, Europe, and Asia. Asia may as well be divided into several regions with China being the leading investor of all.
Despite the ongoing tensions and export restrictions between the US, Europe, and China related to advanced semiconductors, when it comes to power semiconductors European companies continue to invest in the Chinese market expanding their product capacity or establishing new joint ventures like STMicroelectronics and Sanan Optoelectronics did recently.
Even with some delay, Japanese companies like ROHM, Mitsubishi Electric, Fuji Electric, Renesas Electronics, Toshiba, and others, pushed by their US and European competitors, announced their own projects aimed to secure the capacity on the wafer and device level to correspond to the growing demand for Si and SiC based power semiconductors coming from the electric vehicle and charging, photovoltaics, battery energy storage systems, and the other emerging applications.
If we take a closer look at all projects announced, SiC is the leading technology with over 60% of total investment. Over 25 market leaders announced their plans to invest in silicon carbide.
Thus, ROHM is investing in new production to multiply its SiC capacity in the coming years. Mitsubishi Electric teams up with Coherent to scale manufacturing of SiC power devices on a 200 mm SiC technology platform as one of the steps of their 260 billion yen investment project planned till March 2026.
Infineon Technologies continues to bet on both local European and Asian markets investing in their new fab in Dresden and expanding backend operations in Indonesia. STMicroelectronics continues to invest in WBG semiconductors with the ongoing construction of a new wafer fab in Sicily announced in 2022.
With a global total number of new investment projects of over 80, the US companies Wolfspeed, onsemi, and Microchip Technology, similar to their European counterparts, invest locally, in Europe and Asian markets. Totally the US semiconductor companies announced new projects valued at almost 9 billion USD.
With the US and EU Chips Acts, and similar initiatives in China, Japan, South Korea, and some other countries, it is clear that the investment into power semiconductors industry will continue to reach 100 billion USD soon.
