Hitachi to Maintain Power Fab - Micro Devices Going Fabless

December 10, 2012 by Jeff Shepard

Industry reports that Hitachi, Ltd. will stop producing power semiconductors are incorrect. Hitachi has two semiconductor divisions: Power Devices and Micro Devices. There is no change to Power Devices, such as IGBT modules and diodes. The news refers to the Micro Device Division (MDD) semiconductors, like telecom ICs and ultrasound pulsers. MDD has decided to outsource the manufacturing process of the chips. This simply means that MDD will be "fabless."

This step is being taken to optimally allocate management resources to better enhance the competitiveness of Hitachi's Information & Telecommunication Systems business. Specifically, Hitachi will terminate the manufacture of semiconductor integrated circuits currently performed by the Micro Device Division under the Information & Telecommunication Systems Company on March 31, 2014.

Going forward, a variety of steps will be taken to bolster the global competitiveness of the Information & Telecommunication Systems business. One aspect of this will be to promote business and pursue greater management rationalization by specializing in the development, design and quality assurance of LSIs primarily for Hitachi Group products, including information and telecommunication hardware. Another will be to optimally allocate production-related human resources and other management resources throughout the Hitachi Group.

Hitachi first established the Device Development Center in 1975, with the aim of developing semiconductor integrated circuits for information and telecommunication hardware. In 2004, the center was incorporated under the Micro Device Division as part of organizational reforms. Since then, the center has been engaged in the design, development, manufacture and sale of semiconductor integrated circuits for the Hitachi Group and external customers utilized in information and telecommunication hardware, as well as for application in the measurement, medical and industrial equipment fields.