Power chips contribute to maximum possible performance. A function that we normally see present on mobile devices and computers, but that has spread with the advancement of IoT technology.
Furthermore, its integration does not stop there, but extends to more technological solutions. Due to the increasing manufacturing of AI processors, autonomous vehicles, automated delivery robots and other innovations. Basically, any device that makes our daily lives easier, but also involves greater energy demand and management. Hence, power management chips emerge as a solution.
Optimizing energy efficiency
At least that's how it poses Taro Shimada (CEO of Toshiba Corp), who believes that it is necessary to expand the production of energy management chips “as soon as possible”. This as a measure to counteract the growing demand and challenges of the development of electronic vehicles. Not to mention that it would also contribute to maintaining a much more sustainable and environmentally friendly production chain.
This is how the director of Toshiba assured that over the next few months the leading electronics company will invest 125 billion yen (175.57 million dollars). This to double the production of energy management chips. At the same time, ensuring that they expect a quick return on their profits, making an “optimal allocation” both in Japan and abroad.
Japanese government will seek to meet the demand for energy chips
This arises after the recent concern on the part of the Japanese government. In this sense, ensuring that the energy chip industry is very far from catching up with Europe's second leading manufacturer, Infineon Technologies AG. For this reason, they announced that they would subsidize 129.4 billion yen (more than 900 million dollars), in an attempt to remain competitive within the market.
This led manufacturers such as Rohm Semoconductor to invest 289.2 billion yen in its production plant in Miyazaki Prefecture, Kyushu. At the same time, Toshiba will proceed with its investment in the next-generation Ishikawa manufacturing plant. In this way, it is expected to increase production capacity and satisfy the growing demand that exists in the country.
Demand for power chips reaches new heights
We talk about a market that experienced exponential growth in recent years. Especially after the pandemic, and whose shortage multiplied enormously in 2022, it is believed that it will end by 2024. Hence, many manufacturers are turning towards this solution again, thus contributing to the development of IoT devices, wearable and mobile technologies, autonomous vehicles and further.
For this reason, many experts predict an optimistic outlook for the development and manufacturing of new energy management or low-consumption chips. This is driven by factors such as the fact that more and more companies are seeking to implement renewable energy solutions. Which is fundamental in the demand of this market, allowing us to address the main challenges of sustainability and energy efficiency.
The Emerging Importance of Power Management Chips
Added to this is the development of advanced manufacturing processes, as is the case of Toshiba's new generation plant in Ishikawa. In addition to other important ones such as Intel, Taiwan Semiconductor or the current construction process of Samsung's Texas Instruments. Thus, demonstrating how more and more organizations are seeking to address the growing power management chip gap.
In fact, both Europe and the United States remain at the forefront of these efforts, having the largest number of manufacturing plants. This is driven by regulations such as the European Chip Law, which allocated around €43 billion to the development of semiconductors. With the aim of “creating a European ecosystem of next-generation chips.”
This is how the 2020 pandemic not only paralyzed the world, but also revealed many challenges to be addressed. This added to the shortage of power management chips, stopping development in various industries. Hence, many organizations took into account the importance they represent for innovation, becoming one of the most present technological trends for 2024.