🟦Nidic announces semiconductor strategy

Nidic Opens Semiconductor Solution Center

🟦 Strengthening Nidic Semiconductor Technology Capabilities

Nidic announced its semiconductor strategy at the opening briefing of the Semiconductor Solution Center. It is a three-stage strategy aimed at ensuring the stability of semiconductors.

  1. Promoting the Consolidation of Semiconductors to be Procured and Securing a Stable Supply
  2. Development and manufacturing consignment of high-value-added semiconductors
  3. Provision of high value-added solutions

The development and consignment of manufacturing of high-value-added semiconductors is not limited to in-house production, but is aimed at enhancing semiconductor development technology. Until now, we have chosen catalog products from manufacturers for semiconductors, but we are aiming to make RFQs (quotation specifications) in-house to develop new semiconductors. By deepening cooperation with semiconductor manufacturers from the design stage, we plan to select manufacturers and conclude long-term contracts.

🟦 Aiming for ultra-vertical integration, but in-house production is one way

The final step in the semiconductor strategy is a high-value-added solution. Nidic is developing a product that modularizes traction motors for EVs as E-Axle. The aim is not to provide a single motor, but also to provide a high-value-added solution by combining inverters and gears. It is said that it aims at ultra-vertical integration including semiconductors. In the announced semiconductor strategy, in-house production is treated as one of the means, and it is a strategy that understands the horizontal division of labor in the semiconductor industry.



Nidic Announces Semiconductor Strategy Targeting High Value-Added Solutions through Ultra-Vertical Integration

It is not “in-house” at all costs, but a strategy to enhance semiconductor development capabilities. Manufacturing can be done anywhere with development capabilities, and the horizontal division of labor is progressing in the semiconductor industry. Japan I think Densan’s strategy is a very royal road.

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