Power Semiconductors Business Strategies May 17, 2012 Fuji Electric Co., Ltd. Electronic Devices Business Group 2012 Fuji Electric Co., Ltd. 1
Contents Business Overview Business Targets Business Strategies / Priority Measures 2012 Fuji Electric Co., Ltd. 2
Business Overview 2012 Fuji Electric Co., Ltd. 3
Electronic Devices Business at a Glance Sub segment: Semiconductors Power semiconductor business (Main (Main products) products) IGBTs, IGBTs, MOSFETs, MOSFETs, Power Power ICs ICs (Application) (Application) Industry, Industry, automotive automotive field, field, power power supplies supplies Sub segment: Magnetic disks (Main (Main products) products) Aluminum Aluminum and and glass glass substrate substrate magnetic magnetic disks disks (Application) (Application) Hard Hard disk disk drives drives Optical semiconductor business Net sales by fields ( billion) (Main (Main products) products) Photoconductive Photoconductive drums, drums, solar solar cells cells (Application) (Application) Photoconductive Photoconductive drums: drums: Copiers, Copiers, printers printers Solar Solar cells: cells: Designed Designed roofs, roofs, power-generating power-generating weed weed barrier barrier sheets, sheets, consumer-use/portable consumer-use/portable solar solar generators generators Magnetic disks Optical semiconductor Power semiconductor 110.9 26.2 26.2 9.7 9.7 75.2 75.2 FY2011 Results 140.0 132.5 127.6 25.0 23.4 25.0 30.5 23.4 30.5 11.0 10.9 11.0 10.9 10.7 10.7 98.2 104.0 86.4 98.2 104.0 86.4 FY2012 FY2013 FY2014 Forecasts Forecasts Forecasts 2012 Fuji Electric Co., Ltd. 4
Power Semiconductor Business Overview Industry area Composition of sales: 51% Automotive field Composition of sales: 27% Power supply application area Composition of sales: 22% Applications Target products Features Inverters Inverters, NC machine tools, elevators, UPSs, wind power/solar power, railcars, air conditioners, etc. IGBT modules Applying industry-leading technology to achieve energy saving/outstanding reliability Wind power generation Engine controls, transmission controls, brake controls, steering controls, HEVs motor controls, etc. IGBT modules Igniters Discrete products Pressure sensors Power ICs - Developing lineup of related products focused on power train area - Realizing small, light, highly reliable products Servers PCs, flat-screen TVs, video game consoles, servers, industrial power supplies, documents, communications, etc. MOSFET Discrete products Power ICs Flat-screen TVs Diodes - Boasting rich lineup of high-voltage compatible products for medium-tolarge capacity power supplies - Realizing energy-saving and morecompact products 2012 Fuji Electric Co., Ltd. 5
Business Targets 2012 Fuji Electric Co., Ltd. 6
[\ billion] 15,000 1,500 10,000 1,000 5,000 500 1,245 1,081 Power Semiconductor Market Trends (Market in which Fuji Electric Participates) Scale of power semiconductor market in which Fuji Electric participates will grow to 1,517.9 billion in 2015 Market projected to be 6% smaller (2011-2013) than previously forecasted (October 2011) Power semiconductor market will continue to be supported by IGBT and automotive field Power supplies (power supply ICs, MOSFET, diodes) Automotive products (power ICs, pressure sensors) IGBTs (industrial/vehicle-use) 961 1,132 1,205 1,134 1,315 1,238 As of Oct, 2011 1,407-6% 1,325 1,426 1,518 11-15 CAGR Power Semiconductors 7.6% Power supplies 3.5% Automotive products 9.2% IGBTs 10.9% 0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Fuji Electric s estimate using isupply and other market data 2012 Fuji Electric Co., Ltd. 7
Business Targets Basic Policy Focus resource allocation on the new energy (wind / solar power), energysaving, and automotive fields Limit capital investment in reflection of new market scale forecasts (6% lower) by carefully selecting and concentrating businesses Fuse products with power electronics technologies used to create superior power electronics Begin mass production of next-generation semiconductors (SiC) Net sales Ratio to net sales % Operating income Net sales / Operating income ( billion) 75.2 1.9% 86.4 98.2 1.4 2.6 4.6 FY2011 Results 3.0% FY2012 Forecasts 4.7% FY2013 Forecasts 104.0 5.3% 5.5 FY2014 Forecasts Automotive Products IGBTs Net sales by sub-segment ( billion) CAGR 75.2 Power supplies 16.5 20.0 38.7 FY2011 Results 86.4 16.3 25.6 44.5 FY2012 Forecasts 98.2 16.1 30.8 51.3 FY2013 Forecasts 104.0 13.4 36.3 54.3 FY2014 Forecasts 11% Segment 22% Automotive products Japan 12% Industry Overseas Sales in Japan / Overseas ( billion) 75.2 41.2 34.0 FY2011 Results 86.4 47.4 39.0 FY2012 Forecasts 98.2 54.2 44.0 FY2013 Forecasts 104.0 56.0 48.0 FY2014 Forecasts 2012 Fuji Electric Co., Ltd. 8
Sales Growth Targets (IGBT) Carefully select and concentrate target markets (new energy, energy saving, automotive fields) Expand sales in growth areas and target 18% share in 2014 2010 年実績シェア FY2010 share result Fuji 富士 Electric 15% CAGR11-14 Market: 10.9% FE: 12.7% FY2014 2014 年推定シェア share target Fuji Electric 富士 18% Estimations formulated by Fuji Electric using IMS 11 2012 Fuji Electric Co., Ltd. 9
FY2012 Business Strategies / Priority Measures 2012 Fuji Electric Co., Ltd. 10
Priority Measures Introduce new energy and energy-saving products - Establish energy-related IGBT series - Introduce new power supply- and automotive field-related products Strengthen operating systems - Expand overseas sales by promoting local design, production, and consumption - Pursue cost reductions (increases overseas production and percent of parts procured overseas) - Shrink inventories Expand and optimize production base network Mitigate risks through base diversification - Start up 8-inch front-end-process production line in Yamanashi - Establish base for back-end processing in Shenzhen, China (September) and install development functions - Commence operations at Tsugaru factory (July) 2012 Fuji Electric Co., Ltd. 11
Business Strategies New technologies and products Existing technologies and products Expand IGBT module series Bolster lineup of IGBTs for automotive field Develop new discrete products for power supply field Strengthen financial constitution by thoroughly cutting costs Enhance customer retention efforts through tech support Power Semiconductors FY12: 86.4billion (FY11 75.2 billion) 1. Introduce new IGBTs for air conditioners 2. Introduce new high-capacity IGBTs for new energy market M&A activities: Tsugaru factory Enter into solar power- and automotive field-related markets Existing customers New customers 2012 Fuji Electric Co., Ltd. 12
IGBT for Air Conditioners (Low-Capacity IPM) Target markets Room air conditioners Applied technologies Newly developed devices (HVIC, LVIC) Unique heat radiating package construction Target areas China Schedule Release sample (15A): October 2012 onward Begin mass production: January 2013 onward Features of low-capacity intelligent power modules (IPMs) Low loss, low noise Incorporated in drive circuits Protection functions Miniature/RoHS compatible Plans for series development: 600V/15A (FY2012), 600V/20A, 30A (scheduled for FY2013) IPM HVIC HVIC HVIC LVIC MPU M 2012 Fuji Electric Co., Ltd. 13
High-Capacity IGBT (V-Series High Capacity) Target markets Solar power generation, wind power generation, medium-voltage inverters Applied technologies 6th generation IGBTs/FWDs chips High-quality design Target areas Europe, China Schedule Currently being mass produced Features of V-Series high capacity modules Low loss/low noise Low inductance package Highly reliable Optimal package through parallel connection *PrimePACK TM is a trademark of Infineon Technologies AG, Germany PrimePACK TM 1200V/600~1400A 1700V/650~1400A High Power Module 1200V/600~3600A 1700V/600~3600A 3300V/650~1500A 2012 Fuji Electric Co., Ltd. 14
SiC (IGBT + SiC-SBD Hybrid Modules) Target markets High-efficiency inverter, servo, UPS, PCS Applied technologies 6th generation IGBT + SiC-SBD chips V-Series PIM packages Target areas Japan Schedule Release sample: October 2012 onward Features of IGBT + SiC-SBD hybrid modules Low loss (35% reduction compared to previous models) Avalanche resistance for low-ion voltage (SiC-SBD) Commercialized as power interface module (PIM) (rectifier bridge + breaker circuit + 3-phase inverter circuit) Plans to release 2in1 and 6in1 series in future Hybrid modules 600V/50-100A 1200V/35 50A 2012 Fuji Electric Co., Ltd. 15
Capital Investment / Production Bases Start up 8-inch IGBT production line at Yamanashi factory Establish production line in China (Shenzhen) and invest in production capacity increases at overseas production bases Acquire Tsugaru factory Production bases (front-end processes) Production bases (back-end processes) Scheduled to commence operations in FY2012 front-end process back-end process Matsumoto Tsugaru (2012/7) Japan (3 bases) Philippines Yamanashi (2012/10) Malaysia Malaysia China (Shenzhen) (2012/9) Ensure stable supply through expansion production base network 2012 Fuji Electric Co., Ltd. 16
Overview of Tsugaru Factory - Location: 156 Azanabekake Ooazaurushikawa, Goshogawara-shi, Aomori-ken - Area: 114,129m2 (premises), 31,358m2 (factory) - Productions handled: Automotive field-use microcomputers, power ICs, etc. - φ6-inch wafer front-end processing capacity: 30,000 wafers/month - Design rule: 0.35μm Acquired by FE Tsugaru Tetsudo Railway Playground Tennis court Factory A Factory C Main entrance Factory B 2012 Fuji Electric Co., Ltd. 17
Overview of Fuji Electric (Shenzhen) Co., Ltd. Name: Fuji Electric (Shenzhen) Co., Ltd. Location: High-technology Industrial Zone, Feng Tang Rd., Fu Yong, Bao An, Shenzhen, GuangDong (Next to Shenzhen Bao'an International Airport) Employees: 1,000 Area: 45,250m2 (premises), 17,050m2 (factory 1), 11,250m2 (factory 2) Products handled: Photoconductive drums Semiconductor-related Applicable products: Industrial-use IGBT modules Mass production begins: September 2012 Completion of factory 3 (17,050m2): June 2013 Factory 3 (To be constructed) Factory 2 Factory 1 2012 Fuji Electric Co., Ltd. 18
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 pertain regarding 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 uncertainties inherent in such judgments and assumptions, as well as changes in business operations or other internal or external conditions. Accordingly, the company gives no guarantee regarding the reliability of any information contained in these forwardlooking 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. 2012 Fuji Electric Co., Ltd. 19