Renesas Electronics Reopens Factory for Semiconductor Demand

On April 11th, Renesas Electronics announced the reopening of a factory near Japan's iconic Mount Fuji after a closure spanning over nine years. This strategic move aims to meet the escalating demand for power semiconductors, primarily driven by the surge in electric vehicle and data center technologies. Renesas Electronics' President, Hidetoshi Shibata, emphasized during the inauguration ceremony, "The proliferation of electric vehicles and artificial intelligence necessitates an unprecedented level of power."

Located in Yamanashi Prefecture, Japan, the Kofu factory had previously focused on semiconductor production for personal computers until its closure in October 2014. Now, the refurbished facility is poised to double Renesas Electronics' output of power semiconductors starting from the upcoming year. Despite its inception dating back to 2000, substantial renovations have revitalized the factory, including the implementation of a new clean room and cutting-edge production equipment.

Shibata underscored the significance of repurposing an idle facility, enabling Renesas Electronics to expedite operations seamlessly. Last year, the reactivation process began at the Kofu factory, with the completion of the clean room in October followed by equipment installation. Notably, while establishing a new semiconductor factory typically demands substantial investment and several years' time, refurbishing the Kofu facility incurred approximately 90 billion yen and concluded within a year.

The escalating demand for energy-efficient power semiconductors, fueled by the proliferation of electric vehicles and data centers, is evident. Fuji Keizai, a Tokyo-based research firm, forecasts the global market for such components to reach approximately 60 trillion yen by 2030, representing a staggering 90% growth from 2023. Masayoshi Yamamoto, an engineering professor at Nagoya University, commented, "The rapid expansion of the power semiconductor market facilitates favorable investment returns."

Beyond Renesas Electronics, other Japanese chip manufacturers are also leveraging existing facilities to expand their production capacity. Contract chip manufacturer JS Foundry plans to invest 13 billion yen in a factory located in Niigata Prefecture next year, boosting power semiconductor production by 30%. CEO Akihiko Sakai noted, "By refurbishing aged facilities, we can swiftly establish a robust semiconductor supply chain."