April 26, 2007 – DENSO Corp. says it will spend about $200 million (24 billion yen) to establish a third company to produce automotive semiconductor products, targeting sales of ~$850 million (100 billion yen) by fiscal 2015.
Denso Electronics Corp., to be established in Chitose, Hokkaido with initial capital investment of about $17 million (2 billion yen), aims to address growing demand for technology supporting more sophisticated automotive electronic control systems. The company also will work on application design functions to strengthen product development capabilities, the company noted.
The 50,000 sq. m. factory will be DENSO’s third such production facility for the automotive chips, complementing other locations in Kota and Takatana. About 100 employees will be working at the Chitose site by 2009, increasing to 1300 by 2015, the company predicts.