Globally, industrial tech companies are racing to develop smaller, lighter, and more efficient semiconductors to power electric vehicles and other high-voltage electronics. Japanese automakers are also striving to expand their share of the electric vehicle market. Additionally, the Japanese government is providing subsidies for companies planning to invest ¥200 billion (approximately $1.3 billion) or more in next-generation power chips, such as silicon carbide chips. Stimulated by these policies, Toshiba Corp., Rohm Co., Denso Corp., and Fuji Electric Co. have already announced partnerships for joint production.

According to research firm Omdia, Mitsubishi Electric accounted for 5.5% of global power semiconductor sales in 2023, compared to Infineon's 22.8% and ON Semiconductor's 11.2%. Mitsubishi Electric expects its power chip business to drive its semiconductor and device division to achieve an operating profit of ¥36 billion this fiscal year, a 20% increase. Additionally, the company is building a new 8-inch silicon carbide wafer plant in Kumamoto Prefecture and has invested in Coherent Corp.'s silicon carbide business.