DENSO CORPORATION hosted its annual Dialog Day on November 15th. 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.

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 intiatives: “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 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 5 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 our products and systems that meet the needs of customers and local communities. In “technology development,” we 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.

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, we will differentiate ourselves by developing in-house products that suppot customers’ needs. In terms of the SoC, we will build an optimal SoC for in-vehicle use by advancing industry cooperation, including the acquisition of chiplet technology.

・Software


Relating to our workforce, in 2030, DENSO will increase the number of software engineers to 18,000, 1.5 times more than the current level. In 2035, we increased the size of our 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, we will ollaborate 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.

While we are developing technologies and considering commercialization in various fields, we will enter the hydrogen business in the energy field. Utilizing technologies we have developed in the automotive industry, such as ceramics, ejectors, and thermal management, we will introduce SOEC and SOFC to the market. In the food and agriculture sector, we will introduce manufacturing principles to farming to contribute to the stable supply of food,. We will also accelerate our global business development by combining the strengths of the wholly owned Certhon Group with those of DENSO.

Through the three intiatives and under the new management structure, we will advance our business in the field of “Green” and “Peace of Mind” and aim to achieive 7.5 trillion yen in sales by 2030.

Management that values our 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.

Original – DENSO