Top 10 Power Semiconductor Companies: Infineon ranks first and Onsemi makes the cut.

The report "Status of the Power Electronics 2023" released by Yole Intelligence, a semiconductor market research company under the Yole Group, includes the sales ranking of power semiconductor suppliers (discrete + modules) from 2020 to 2022. I negotiated with Yole and obtained permission to publish this chart, so I want to use it to understand the current status of the power semiconductor market. Infineon Technologies (IFNNY.US) remains in the top position in 2022, and it has continued to grow significantly from 2020 to 2022, outpacing other companies. Additionally, ON Semiconductor (ON.US) ranked second and STMicroelectronics (STM.US) ranked third, although their sales are not as high as Infineon, their sales have been increasing steadily, securing their positions. Against this background, five Japanese companies entered the top ten, with Mitsubishi Electric ranking fourth, Rohm ranking sixth, Toshiba ranking seventh, Fuji Electric ranking eighth, and Renesas Electronics ranking ninth, and also entering the top 20. As you can see, Hitachi is ranked 17th. However, although Japanese companies occupy a considerable proportion in terms of quantity, it is worth noting that the total sales of the six companies in the top 20 did not reach the top-ranked Infineon. Yole stated that among the six Japanese companies in the top 20, except for Hitachi, the sales of the other five companies are expected to increase in the next one to three years. However, during the same period, leading Western companies also have significant sales. It is expected that sales will also increase in a similar way through additional funding-supported capacity expansion and corporate acquisitions. In addition, the emerging industries in China have always supported the power semiconductor industry as a national policy. The Chinese government supports the development of infrastructure such as railways, high-voltage transmission, and electric vehicles (including charging facilities). In recent years, they have been paying attention not only to Si but also to SiC and GaN. Given that power semiconductors are not directly related to the miniaturization related to the semiconductor regulations currently promoted by the US government, Chinese companies may attack the global market with cheap products, while the US government will implement new regulations. In light of this global situation, Japanese competitors may be sandwiched between Western competitors in the lead and rapidly catching up Chinese competitors. The Ministry of Economy, Trade and Industry (METI) is also taking action to overcome the current situation by introducing subsidy policies, but these policies target companies with a scale of over 200 billion yen and aim to restructure the industry. However, considering that the development of many major power semiconductor manufacturers in Japan is related to their internal high-power electronics departments, which are fiercely competitive companies, there seems to be a possibility that METI's intentions may not be implemented. At the same time, ROHM in Japan announced that it would invest 300 billion yen in Toshiba's TOB (tender offer) plan led by the investment fund Japan Industrial Partners (JIP). In addition to investing 100 billion yen in investment funds managed by JIP, the company plans to subscribe to preferred shares worth 200 billion yen issued by affiliated companies of the domestic alliance. In Yole's ranking, Rohm ranks sixth and Toshiba ranks seventh. If the power semiconductor sales of the two companies are combined, they will surpass Mitsubishi Electric, the top-ranked company in Japan, and approach STMicroelectronics, which ranks third. Although Rohm has stated that it has not reached any agreements regarding collaboration or management participation with Toshiba, there are rumors that it is interested in future collaboration and cooperation with Toshiba's semiconductor business. The Ministry of Economy, Trade, and Industry has expressed high expectations for the investments exceeding 200 billion yen by both companies. As Rohm does not conduct its own power electronics business, it does not compete with Toshiba's power electronics division, and Rohm acknowledges that the businesses of the two companies are highly compatible. In the past, when analog home appliances were strong in Japan, the semiconductor departments of home appliance manufacturers acted as subcontractors for such appliances. However, with the advent of digitalization, the Japanese home appliance business has failed, and the semiconductor business has also declined. Some people say that the current situation in the power semiconductor industry is very similar to the path the Japanese semiconductor industry took in the 1990s. It can be said that it is becoming more and more necessary to seriously consider the future path of the Japanese power semiconductor industry in order to survive in the competition with overseas competitors. Source: WeChat account "Semiconductor Industry Observation," GMTEight editor: Chen Qiuda.