three-year rolling plan power semiconductors … for market share of 20% (industry’s second-tier...

© 2011 Fuji Electric Co., Ltd. 1

November 17, 2011November 17, 2011Fuji Electric Co., Ltd.Fuji Electric Co., Ltd.

Electronic Devices Business HeadquartersElectronic Devices Business Headquarters

ThreeThree--Year Rolling PlanYear Rolling PlanPower Semiconductors Business StrategiesPower Semiconductors Business Strategies


Contents

■ Business Overview

■ Business Targets

■ Business Strategies/Priority Measures


Business Overview


Electronic Devices Business at a Glance

(Main products)IGBTs, MOSFETs, power ICs

(Application)Industry, automobiles, power supplies

(Main products)IGBTs, MOSFETs, power ICs

(Application)Industry, automobiles, power supplies

(Main products)Photoconductive drums, solar cells(Applications)Photoconductive drums: Copiers, printersSolar cells: Designed roofs, power-generating weed barrier sheets, consumer-use/portable solar generators

(Main products)Photoconductive drums, solar cells(Applications)Photoconductive drums: Copiers, printersSolar cells: Designed roofs, power-generating weed barrier sheets, consumer-use/portable solar generators

(Main products)Aluminum and glass substrate magnetic disks

(Applications)Hard disk drives

(Main products)Aluminum and glass substrate magnetic disks

(Applications)Hard disk drives

79.590.010.612.0

12.0

28.025.0

25.0

113.0

118.1127.0

150.0

Magnetic disk

Optical semiconductor

Power semiconductor

FY2012plan

FY2013plan

FY2011forecast

Net sales by sub-segment

Power semiconductor business

Optical semiconductor business

Magnetic disk business

(¥ billion)


Power Semiconductor Business Overview

Pressure sensors

Applications

Target productsfor application

Features

Industry area(Percentage of net sales: 53%)

IGBT modules

Automotive area(Percentage of net sales: 25%)

IGBT IPM

Igniters

Power supply application area(Percentage of net sales: 22%)

Power ICs

MOSFETsIPSs Diodes

Inverters, NC machine tools, elevators, UPSs, wind power/solar power , railcars, air conditioners, etc.

Engine controls, transmission controls, brake controls, steering controls, HEVs motor controls, etc.

PCs, flat-screen TVs, video game consoles, servers, industrial power supplies, documents, communications, etc.

Inverters

Wind power generation

Servers Flat-screen TVs

- Applying industry-leading technology to achieve energy saving/outstanding reliability

- Developing lineup of related products focused on power train area- Realizing small/light/highly reliable products

- Boasting rich lineup of high-voltage compatible products for medium-to-large-capacity power supplies- Realizing energy-saving/more-compact products

* The percentage of net sales that each area accounts for is the percentage of forecast net sales for FY2011


Business Targets

© 2011 Fuji Electric Co., Ltd.

0

5,000

10,000

15,000

20,000

2007 2008 2009 2010 2011 2012 2013

（Million USD）

Discrete power supplies (power ICs, MOSFETs, diodes)

Automobiles discrete (power ICs, pressure sensors)

IGBTs (industrial, automotive)

Results Forecasts

12,445

11,03110,227

13,314

14,173

15,471

16,558

2.8%

CAGR

12.1%

10.8%

7

Power Semiconductor Market Trends

Data source: Fuji Electric’s estimates based on IMS, WSTS, CSM

(2011～2013）

（Power supplies）

（Automobiles）

（ＩＧＢＴs）


Power Semiconductor Business Targets

FY2013 PlanNet sales: ¥113 billion, operating income margin: 8%

42.1 48.664.8

19.924.1

2917.5

19.2

17.3

8.1%

5.6%

2.9%

0

20

40

60

80

100

120

140

FY2011forecast FY2012 plan FY2013 plan

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Industries Automotive

Power supply OP marginOPMargin（％）

79.5

90.0

113.0

Net sales(\ billion)

Power supplies

Automobiles

Industries


Business Strategies/Priority Measures


Business Strategies/Priority Measures

Business strategiesBusiness strategiesBusiness strategies

Priority measuresPriority measuresPriority measures

Increase market share in new energy (wind power/solar power), industrial, automotive areas through IGBTs, which are growing markedly

- Expand market by increasing and improving lineup of IGBT modules > Expand environment and energy area by introducing high-capacity IGBTs> Enter consumer-use area by developing lineup of related small-capacity IGBT products

- Expand market with focus on Japan, China, Europe> Increase overseas sales giving first priority to China, Europe, which are growing markets> Increase sales in EV/HEV market centered on Japan

- Expand and optimize manufacturing bases—Use multiple bases to mitigate risk> Start up 8-inch front-end-process production line in Yamanashi region> Increase production capacity for back-end processes mainly overseas

(consider manufacturing at Chinese base)

- Begin mass production of next-generation semiconductors (SiC)


EV/HEV

Robots

Company’s traditional markets

Business Strategies (target markets [IGBTs])Growing markets

(large capacity/ high-voltage compatible)

New-entry markets (small capacity)

High voltage (V)

Large current (A)

Railways

Wind powergeneration

Mega solar

Consumerelectronics

Servers

Inverters

UPSs


WW market (2009 share)

Inf ineon23%

Mitsubish iElectric

28%Fairchild

Danfoss

Sanyo

Toshiba

Hitachi5%

Fuji Electric10%

Semikron13%

ABB

VincotechOthers

12

Aim for market share of 20% (industry’s second-tier group) by expanding and improving IGBT lineup

Business Strategies (IGBT market share)

2009 & 2010 Data Source: IMS Research2013: Estimate based on IMS Research market forecast data

WW market (2013 target share)

Fuj i Electr ic20%

WW market (2010 share)

OthersVincotech

ABB

Fuji Electric15%

Semikron12%

Hitachi4%

Toshiba

Sanyo

DanfossFairchild

Mitsubish iElectric

29%

Inf ineon21%


Growth Strategies (New products: V-Series large capacity)

Solar power generation, wind power generation, high-voltage inverters Europe, China, United States, Japan

Realize application of 6th generation IGBTs/FWDs chips

Realize easy-to-use package structures for each application

Low loss/low noiseLow inductance packageHighly reliablePlans for lineup of related products

Target markets Target areas

Measures

High Power Module1200V/600～3600A1700V/600～3600A3300V/650～1500A

PrimePACKTM

1200V/600～1400A1700V/650～1400A

*PrimePACKTM is a trademark of Infineon Technologies AG, Germany

Features of V-Serieslarge capacity modules


Growth Strategies (new products: IGBTs for EVs/HEVs)

Direct water cooling

Direct water cooled modulefor vehicle mountingCompact/lightLow loss/low noiseLow inductance packageHighly reliablePlans for lineup of related products:

650V/400A/600A


Japan, United States, Europe, China

Apply 6th generation IGBT technology, realize compact/advanced-heat-radiating modules through direct water cooling

Measures

Motor controls and charging devices of EVs/HEVs etc.


Growth Strategies (new products: small capacity IPMs)

Features of small capacity IPMs (Intelligent Power Modules)

Compact/low loss, low noiseIncorporated in drive circuitsIncorporated in drive ICs with protection functionsPlans for lineup of related products: 600V/15A, 20A, 30A

M

LVIC

HVIC HVIC HVIC

MPU

IPM


Measures

Room air conditioners, consumer electronics China, Japan, Asia

Unique advanced-heat-radiating package structure

Application in newly developed devices (drive circuits, drive ICs with protection functions, low loss IGBTs/FWDs)


Growth Strategies (expand lineup of related products: V-Series IPMs)

Thin/compact/low loss/low noiseHighly reliableSignal output that enables alarm cause identificationWide-ranging plans for lineupof related products: 600V/20A - 400A

1200V/10A - 200A56 50

0

10

20

30

40

50

60

U-Series V-Series

Size -75%

Loss -10%


Measures

Robots, inverters, servos Japan, China, Europe, United States

Application in 6th generation IGBT/FWD chips, alarm cause identification signal output

Optimizing package structures for electric current capacities

Features of V-Series IPMs (Intelligent Power Modules)


China: Currently considering new

establishment of back-end processes

Malaysia

Japan (3 bases)

YamanashiIn Japan

(Plan: May 2012)

PhilippinesMatsumotoIn Japan

New establishmentof bases in China

(plan from FY2012 onward)

Front-end processesFront-end processes Back-end processesBack-end processes

Production bases(front-end processes)

Production bases(back-end processes)

Malaysia

Business Strategies (production bases)- Accelerate overseas transfer of back-end processes and newly establish 8-inch

front-end-process production line- Realize stable supply by using multiple bases


Capital Investment/R&D


Capital Investment/R&D

- Expand lineup of IGBT-related products into small capacity/large capacity area- Develop 7th generation IGBTs- Develop highly reliable devices for automobiles- Develop next-generation semiconductors (SiC, GaN)

Capital InvestmentCapital InvestmentCapital Investment

R&DR&DR&D

- Start up IGBT 8-inch production line in Yamanashi Plant- Invest to increase production of IGBT modules in Malaysia- Invest in back-end process production bases in China- Undertake strategic investment in SiC


Initiatives for Next-Generation Devices

SiC MOSFET currently being jointly developed with the National Institute of

Advanced Industrial Science and Technology (incorporated

administrative agency)

Reliability Development results

High-temperature cyclePower cycle

Temperature humidity bias

1000 cycle300 thousand cycle

1000 hours

Open up new markets by introducing mass production of next-generation SiC

Fuji Electric’s original package structure

◆SiCComplete technology for mass production of SiC-SBD through joint development with National Institute of Advanced Industrial Science and Technology. Currently developing SiC-IEMOS● Plan for introducing mass production

(initial period mass production)Schottky-barrier diode (SBD): During FY2011MOSFET: During FY2012

Develop Fuji Electric’s original high-current-density/small-type PKG

◆ GaN:Currently under development at Technology Research Association for Next Generation Power Device


Disclaimer

1.These materials are outside the scope of auditing procedures required by law, and as of the date of this results presentation, financial statement auditing procedures required by law have not yet been completed.

2. Statements made in this documents or in the presentation to which they pertainregarding estimates or projections are forward-looking statements based on the company’s judgments and assumptions in light of information currently available. Actual results may differ materially from those projected as a result of uncertaintiesinherent in such judgments and assumptions, as well as changes in businessoperations or other internal or external conditions. Accordingly, the company gives noguarantee regarding the reliability of any information contained in these forward-looking statements.

3. These documents are for information purpose only, and do not constitute an inducement by the company to make investments.

4. Unauthorized reproduction of these documents, in part or in whole, is prohibited.

three-year rolling plan power semiconductors … for market share of 20% (industry’s second-tier...

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