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5. Denso Group (China) Business Report FY ended Dec. 2021

Denso Group (China) Business Report FY ended Dec. 2021

Recent Business Developments

Collaboration with USJC for power semiconductor production
-The company announced that it has reached an agreement with United Semiconductor Japan (USJC) to collaborate on power semiconductor production at its 300mm wafer fab. USJC is the Japanese subsidiary of United Microelectronics Corporation (UMC), a major semiconductor foundry in Taiwan. The two companies will establish a new insulated gate bipolar transistor (IGBT) production line at USJC's wafer manufacturing plant, and plan to begin IGBT production on 300mm wafers for the first time in Japan in the first half of 2023.  The demand for semiconductors required for the electrification of automobiles is increasing. In particular, the IGBT is a core component that switches power and current on and off in inverters that convert AC and DC currents to drive and control the motors of electric vehicles. By combining Denso's IGBT device and process technology with USJC's 300mm wafer manufacturing technology, the company aims to produce power semiconductors with high performance and cost efficiency. (From a press release dated April 26, 2022)

Transfer of its Type III alternator business
-The company announced that it will transfer its Type IIIalternator business to Chengdu Huachuan Electrical Equipment Co., Ltd. Denso began manufacturing and selling the III-type alternator in 1982. At its peak, 10 million units were produced globally, mainly for passenger cars, giving it the top share in the world market.  Currently,  production is being consolidated in, and continuous demand is expected mainly for agricultural and construction machinery in Japan and other Asian countries. Chengdu Huachuan Electrical Equipment Co., Ltd. is a company established in 2001 based in Chengdu, Sichuan Province, China. The company is engaged in the development, production, and sales of alternators, starters, wiper systems, and drive motors for EVs. (From a press release dated January 19, 2022)

Shanghai Motor Show 2021: Exhibiting Environmental and Safety Technologies
-The Company announced that it will exhibit products created based on environmental and safety technologies at the Shanghai Motor Show 2021. In the environmental field, the Company will exhibit ELEXCORE, an energy-management system that manages the energy of the entire electric vehicle (EV) fleet to extend the cruising range, shorten charging time, and extend battery life. In addition, ELEXCORE is designed to meet the needs of electrification. The Company will also showcase products related to FCEV systems, a hydrogen-related technology. In the area of security, the exhibition featured V2X technology that prevents accidents and traffic jams through vehicle-to-vehicle and road-to-vehicle communications; a vehicle-failure diagnostic system that predicts failures by diagnosing engine conditions; and GSP2, a package of image sensors and millimeter-wave radar that can detect bicycles and pedestrians at night. (From an April 12, 2021press release)

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