Mitsubishi Electric Opens Power Semiconductor Designs in Tech Race
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
power-semiconductorsmitsubishi-electric
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Mitsubishi Electric announced on June 5, 2026, that it will release key design data for its next-generation power semiconductors free of charge. The initiative targets silicon carbide and gallium nitride power devices, critical components for electric vehicles and renewable energy systems. This strategic move aims to accelerate industry-wide adoption and establish a dominant ecosystem, challenging proprietary models from rivals like Infineon and onsemi.
The power semiconductor market is undergoing a rapid technological transition from traditional silicon to wide-bandgap materials like silicon carbide (SiC) and gallium nitride (GaN). This shift is driven by global demand for energy efficiency in electric vehicles, data centers, and industrial automation. The global SiC power semiconductor market is projected to grow from $2.3 billion in 2025 to over $7.2 billion by 2030, according to Yole Group analysis.
Mitsubishi Electric's decision follows a trend of strategic open-sourcing in hardware to build market share. In 2021, RISC-V International successfully leveraged open-source processor architectures to challenge ARM's dominance in IoT and embedded systems. China's substantial state-backed investment in domestic semiconductor production, exceeding $150 billion in the last decade, pressures established Japanese and Western firms to innovate their commercial strategies.
The immediate catalyst is the impending launch of next-generation 800-volt EV platforms from major automakers in 2027. These platforms require advanced SiC modules for efficient fast-charging and powertrain performance. By releasing design data now, Mitsubishi Electric positions its technology as a de facto standard for automotive Tier 1 suppliers and OEMs beginning their 2028-2030 vehicle design cycles.
The scale of Mitsubishi Electric's power semiconductor business underscores the significance of this decision. The company's Device Division reported revenue of approximately 420 billion yen ($2.7 billion) in its last fiscal year. Power modules contributed an estimated 60% of this revenue. The upcoming data release specifically covers its latest 3rd-generation SiC MOSFETs and GaN HEMTs, which offer 20% higher power density and 15% lower switching losses than previous generations.
Comparison of key power semiconductor players by estimated 2025 market share:
| Company | SiC Market Share | Primary Focus |
|---|---|---|
| Infineon | ~22% | Automotive, Industrial |
| STMicroelectronics | ~18% | Automotive |
| Wolfspeed | ~15% | Substrates, RF |
| onsemi | ~14% | Automotive |
| Mitsubishi Electric | ~9% | Industrial, High-Power |
This open-source approach contrasts with the industry norm of tightly guarding intellectual property. For context, Infineon Technologies spent 1.7 billion euros on R&D in its 2025 fiscal year to maintain its technological edge. Mitsubishi Electric's strategy bets that ecosystem growth will outweigh the risk of IP dilution, aiming to double its market share within five years.
The immediate beneficiaries are semiconductor equipment manufacturers and electronic design automation software firms. Applied Materials (AMAT) and Synopsys (SNPS) could see increased demand for tools that utilize the newly available design kits. Automotive suppliers like BorgWarner (BWA) and Lear Corporation (LEA) gain access to more standardized, potentially lower-cost power module options for future EV programs.
The primary risk involves commoditization. If the design data becomes ubiquitous, it could erode Mitsubishi Electric’s premium pricing power for finished modules, squeezing profit margins. The company mitigates this by focusing its proprietary advantage on advanced manufacturing and packaging techniques not covered in the release. Japanese peers such as Rohm Co., Ltd. (6963.T) may face pressure to follow suit or risk losing design-in opportunities with global customers.
Hedge funds and long-only asset managers are likely increasing exposure to the SiC materials supply chain. Stocks like Coherent Corp. (COHR), a major SiC substrate supplier, have seen elevated option volume ahead of the announcement. The flow suggests institutional investors anticipate accelerated adoption of SiC technology, boosting demand upstream regardless of which fabricator wins the end-market design.
The key near-term catalyst is the actual release of the design data packages, scheduled for the fourth quarter of 2026. Market participants should monitor the technical community's adoption rate on platforms like GitHub for early signals of ecosystem traction. The SEMICON Japan trade show in December 2026 will provide the first major venue for competitor responses and partner announcements.
A critical level to watch is Mitsubishi Electric's power device operating profit margin, which has historically ranged between 12-15%. A sustained move above 16% would indicate the strategy is successfully driving volume without excessive margin sacrifice. Conversely, a drop below 10% would signal premature commoditization.
The next major milestone is the reporting of design-wins from automotive OEMs. Announcements are expected throughout 2027 as car manufacturers finalize powertrain designs for 2029 model year vehicles. The success of this initiative will be measured by the number of major OEMs that publicly reference Mitsubishi Electric's open-platform architecture.
Retail investors should view this as a long-term strategic play, not a short-term catalyst. The decision sacrifices some intellectual property control to accelerate market penetration. Success depends on Mitsubishi Electric's ability to monetize the resulting ecosystem through superior manufacturing and system integration services. This strategy often takes 3-5 years to materially impact revenue and is common in technology sectors aiming to establish a standard.
The strategy is analogous to Google open-sourcing the Android operating system to dominate mobile advertising. Mitsubishi Electric is providing the basic 'operating system' for power electronics design, hoping to profit from selling the 'premium features'—high-performance finished modules and custom solutions. The key difference is the higher capital cost and longer lead times in semiconductor manufacturing compared to software distribution.
Yes, but with a significant time lag. Open access to design data will increase competition among module manufacturers and second-source suppliers, applying downward pressure on prices over the medium term. However, the cost of raw SiC wafers and the complex packaging required for automotive-grade modules remain substantial cost drivers. Meaningful price reductions for end-users are more likely for the 2030 model year vehicles than for immediate future productions.
Mitsubishi Electric is betting its future power semiconductor revenue on ecosystem growth outpacing IP dilution.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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