Denso to Invest $3.3 bn in Semiconductors, Aiming to Triple Chip Business

Japanese automotive supplier Denso is set to make a significant investment of approximately 500 billion yen ($3.3 billion) in the semiconductor industry by 2030. The move is part of Denso’s ambitious plan to triple the scale of its chips business by 2035, compared to its current levels.
BE SemiconductorDenso, a key member of the Toyota group and one of the world’s leading manufacturers of auto parts and components, has been actively expanding its semiconductor business in recent years. This expansion includes strategic partnership agreements aimed at securing a more reliable supply of semiconductors, Reuters news report said.

In a noteworthy development last year, Denso revealed its intention to acquire a stake in a chip manufacturing plant being constructed in Japan by Taiwan Semiconductor Manufacturing (TSMC) in collaboration with Sony. This strategic move underscores the increasing demand for semiconductors within the automotive industry, particularly in the context of the shift towards electric vehicles and “connected cars.”

Speaking at the Japan Mobility Show, Denso President Shinnosuke Hayashi emphasized the importance of stable material procurement for expanding semiconductor production. He stated, “To expand production, we must ensure the stable procurement of materials. Thus, we will forge strategic partnerships with various companies.”