Hitachi and Fuji Electric are setting up a joint venture company to design and develop power semiconductors. The companies say that the 50:50 JV will allow them to share the substantial costs of developing new power semiconductor products and to accelerate the development of these products.

It will also allow them to react to the increasing demand for high-performance and customised products, and to the intensifying price competition in this sector. They hope that the formation of the JV will improve the profitability of their power semiconductor businesses.

Hitachi brings to the JV its strength in large-capacity, high-voltage IGBTs (insulated gate bipolar transistors) used in inverters and similar products. It also produces high-voltage, single-chip inverters, and diodes for automotive applications. Fuji is contributing an expertise in medium-capacity IGBTs and high-voltage diodes.

The joint venture, Fuji-Hitachi Power Semiconductor Technologies, will initially employ around 130 people but the partners say that they are looking for other opportunities to expand their collaboration, including joint production of power semiconductor products. The venture is expected to start operating in November.