(Bloomberg) -- Toshiba Corp. wants to reach double-digit market share in the world’s power chip market by 2030 as it lags behind rivals.
Toshiba may eventually form an alliance of companies that would corner 30% of the industry, according to Noriyasu Kurihara, the general executive of its electronic devices and storage business. The firm is anticipating higher demand for power semiconductors, which regulate electricity flows in everything from rice cookers and LCD televisions to electric vehicles.
“We want to be a meaningful player by the time the world needs more from power-chip suppliers,” he said. “I am not satisfied with the market share we have today. Reaching a double-digit percentage market share on our own is the bare minimum.”
Toshiba had a 3.2% share of the power-semiconductor market last year in terms of revenue, far behind German firm Infineon Technologies AG’s 22.8%, US-based ON Semiconductor Corp.’s 11.2% and Switzerland-based STMicroelectronics NV’s 9.9% share, according to data from research firm Omdia.
“We can’t be Infineon because we lack stamina and expertise to make all sorts of power semiconductors,” Kurihara said, adding that Toshiba needs “deep understanding” of its targeted industries.
He said demand is currently slow for power chips because device makers are still using up their inventories, but business should pick up next year.
Toshiba faces stiff competition from Chinese manufacturers, which receive government subsidies, and should actively seek partners outside Japan to win market presence, Omdia senior analyst Akira Minamikawa said.
Japan is home to manufacturers like Mitsubishi Electric Corp. and Fuji Electric Corp., which hold tiny slices of the power chip market. The Japanese government is encouraging such companies to team up, providing subsidies to those that do. The first deal under this subsidy push was a joint manufacturing pact in December between Toshiba and Rohm Co. for power devices.
Demand for power is likely to grow at an accelerated pace due to advancements in electronic cars and generative artificial intelligence. Omdia expects that electricity supply may not be able to cover all demand around 2030, which means more power-efficient chips would be required.
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