OREANDA-NEWS. Hitachi, Ltd. announced that it has decided to create an integrated framework encompassing design, manufacturing and sales by transferring its power semiconductor business to subsidiary Hitachi Haramachi Electronics Co., Ltd. on October 1, 2013.

The purpose of this reorganization is to provide faster response to diversifying customer needs in the power semiconductor business. In specific terms, Hitachi will transfer its design, manufacturing, quality assurance, sales and other operations of the power semiconductor business to Hitachi Haramachi Electronics Co.,Ltd. via a company split. At the same time, Hitachi Haramachi Electronics will be renamed Hitachi Power Semiconductor Devices Co., Ltd.(Tentative).

Certain disclosures and details have been omitted as the company split involves the transfer of a Hitachi business to a wholly owned subsidiary.

The power semiconductor market has been affected by China’s economic slowdown, the European economic crisis and other major changes. At the same time, however, measures in various spheres to create a low - carbon society are expected to continue apace on a global level. For this reason, Hitachi believes that the power semiconductor market should see even much more expansion going forward as this is a business that contributes to energy conservation.

The company split announced today will integrate power semiconductor operations from design and manufacturing to sales carried out in the Hitachi Group. These products are key devices in the Social Innovation Business, which includes rolling stocks, construction machinery, power generation and transmission & distribution equipments, automobiles and home appliances. This integration aims to expedite the flow of information and decision - making to strengthen the competitiveness of Hitachi’s component products.

Looking ahead, the new company will work to mass produce high-voltage-resistant-IGBTs, which achieve the world’s best performance in terms of low power loss. These IGBTs are used in railway systems, construction machinery, wind power systems, power transmission and distribution systems, and other areas. In tandem, Hitachi Power Semiconductor Devices will step up the pace of development for commercializing SiC (silicon carbide) devices for which expectations are high as a next-generation element.

In addition, it will respond to increasing demand for energy-efficient air conditioners in emerging nations with inverter ICs, leveraging its extensive track record in this market in Japan. Furthermore, in the automotive field, the new company will actively promote business with diodes for third-generation (resin-based) alternators that last longer and are more reliable.

In terms of sales, Hitachi Power Semiconductor Devices will progressively expand overseas sales bases to target the growing global power semiconductor market. At the same time, it will strengthen front sales and front sales engineering to respond to customer demand in light of the growth and evolution of market needs.