Denso Corporation (DENSO), a globally renowned mobility supplier, hosted its annual Dialog Day on November 15, 2023.
Aiming to enhance its concepts - “Green” and “Peace of Mind” to evolve from “a Tier 1 supplier that supports the auto industry” to “a Tier 1 supplier that supports a mobility-centered society,” DENSO has announced a new management structure strategy, its corporate value improvement strategy, its fundamental technology strategy and creation of new values.
DENSO implements three initiatives
To evolve from “a Tier 1 supplier that supports the auto industry” to “a Tier 1 supplier that supports a mobility-centered society,” DENSO is implementing three initiatives: “evolution of mobility,” “strengthening fundamental technologies,” and “creating new value.”
1. Evolution of mobility
Electrification
DENSO aims to grow its electrification business to 1.2 trillion yen in sales by 2025 and 1.7 trillion yen in 2030
DENSO aims to grow its electrification business to 1.2 trillion yen in sales by 2025 and 1.7 trillion yen in 2030, by strengthening its “product competitiveness,” “product lineups” and “manufacturing.”
In terms of “product competitiveness,” the company will refine the functions and performance of its core products, improve competitiveness and provide a wide range of products, from core components to energy management systems, to meet the diverse needs of customers’ “product lineups.”
In “manufacturing,” DENSO will shorten the development period in half, so it can quickly deliver products to customers around the world. In support of this, the company will establish a mass-production system in five regions around the world.
ADAS
DENSO aims to achieve sales of 520 billion yen by 2025 and 1 trillion yen in 2030, by strengthening its “product competitiveness,” “product lineups” and “technology development.”
For “product competitiveness”, in 2022, the company began mass producing Global Safety Package 3, a new-generation advanced safety system. It achieves optimal driver assistance by connecting ADAS products to HMI (Human Machine Interface) and infrastructure.
In terms of “product lineups”, DENSO will contribute to safety by increasing the percentage of vehicles equipped with their products and systems that meet the needs of customers and local communities. In “technology development”, they will strengthen the development of emerging technologies that support the evolution of systems and components.
2. Strengthening fundamental technologies
Semiconductor
DENSO will actively invest about 500 billion yen by 2030 and will triple the scale of the business to 700 billion yen from the current level by 2035.
The company will accelerate the introduction of SiC power semiconductors to the market
In terms of SiC power semiconductors, which contribute to the improvement of electricity consumption of BEV, the company will accelerate the introduction of SiC power semiconductors to the market, by promoting technological initiatives, such as the practical application of high-quality wafers and the reduction of costs, and by achieving stable supply through cooperation with our partners.
Regarding analog semiconductor ASICs, they will differentiate themselves by developing in-house products that support customers’ needs. In terms of the SoC, they will build an optimal SoC for in-vehicle use by advancing industry cooperation, including the acquisition of chiplet technology.
Software
Relating to their workforce, in 2030, DENSO will increase the number of software engineers to 18,000, 1.5 times more than the current level. In 2035, they aim to increase the size of their business to 800 billion yen, four times more than the current level.
As the scale of in-vehicle software becomes increasingly large and the cross-domain development, such as powertrains, body, and communications is required, DENSO will realize a large-scale integrated Electronic Control Unit (ECU) with high quality and high accuracy in software, by utilizing the diverse software IP and mounting capabilities DENSO has accumulated over the years.
In the age of Software-Defined Vehicles (SDV), when software and hardware are separated and begin to be distributed separately, they will collaborate with customers to develop business and lead standardization across our customers.
3. Creating new value
DENSO aims to grow the new value business to 300 billion yen in sales by 2030 and to 20% of total sales in 2035
DENSO aims to grow the new value business to 300 billion yen in sales by 2030 and to 20% of total sales in 2035.
While they are developing technologies and considering commercialization in various fields, they will enter the hydrogen business in the energy field. Utilizing technologies they have developed in the automotive industry, such as ceramics, ejectors, and thermal management, they will introduce SOEC and SOFC to the market.
Accelerate global business development
In the food and agriculture sector, they will introduce manufacturing principles to farming to contribute to the stable supply of food. They will also accelerate their global business development, by combining the strengths of the wholly owned Certhon Group with those of DENSO.
Through the three initiatives and under the new management structure, they will advance their business in the field of “Green” and “Peace of Mind” and aim to achieve 7.5 trillion yen in sales by 2030.
Management that values their people
DENSO will recruit new employees and shift current ones in mature fields to electrification and software areas, to grow that team to about 4,000 employees from 2022 to 2025. The company values the intrinsic talents and passions of every employee, which is the driving force behind all DENSO activities.
DENSO will promote management that values its people, in order to connect its company philosophy with employees' motivations.
