Renesas Electronics Corporation announced that it will conduct a JPY 90 billion worth investment in its Kofu Factory, located in Kai City, Yamanashi Prefecture, Japan. While the Factory was closed in October 2014, Renesas intends to reopen the fab in 2024 as a 300-mm wafer fab capable of manufacturing power semiconductors. As the momentum for carbon neutrality grows, demand for highly efficient power semiconductors, which supply and manage electricity, is expected to dramatically increase globally over the years.

Renesas especially anticipates rapid growth in demand for electric vehicles (EVs), and therefore plans to enhance its production capacity for power semiconductors such as IGBTs, in order to contribute toward decarbonization. Once the Kofu Factory reaches its mass production, the total production capacity of Renesas' power semiconductors will double. The Kofu Factory of Renesas Semiconductor Manufacturing Co.

Ltd., a wholly-owned subsidiary of Renesas, previously operated both 150mm and 200mm wafer fabrication lines. To boost its production capacity, Renesas decided to utilize a remaining building of the factory and revive it as a 300mm wafer fab dedicated to power semiconductors. With the Japanese Ministry of Economy, Trade and Industry's Strategy for Semiconductors in consideration, Renesas plans to conduct its investment within the year of 2022, while closely coordinating with the Ministry.

While this investment will not have a material impact on Renesas' performance for the year of 2022, an announcement will be promptly issued if, following this investment, any material impact is made.