Denso said it would expand the plant of Denso Hokkaido, one of its group companies, to increase production of semiconductor sensors, and enhance both domestic production and group competitiveness.
The supplier would spend about JPY11bn (US$102m) by 2025 to complete the expansion and increase production.
Construction is scheduled to start in July 2020 and to be completed in June 2021. Production is planned to start in stages from October 2021. The number of employees is expected to increase to approximately 1,150 in 2025.
Denso Hokkaido manufactures semiconductor sensors for automotive engines, air conditioners, and brake and other relevant systems.
The supplier is expanding the plant, which has manufactured 500m semiconductor sensors since its opening, in preparation for increased sensor demand as vehicle electrification and safety systems become more complex and proliferate.
“Through this expansion and production of a key automotive technology, Denso Hokkaido will further improve its capability to meet customers’ needs and contribute to the development of the local community” the supplier said.
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