News Release
Fuji Electric Undertakes Capital Investment to Boost Front-End Production Capacity of Power Semiconductors

July 28,2011
Fuji Electric Co., Ltd.

Fuji Electric Co., Ltd. (“Fuji Electric” or “the Company”) announced today that it will undertake capital investment toward boosting its front-end production capacity for power semiconductors.

1. Details

Fuji Electric will redeploy its Yamanashi Factory, located in Minami Alps City, Yamanashi Prefecture, as a second front-end production center for power semiconductors in Japan. An eight-inch wafer processing line will be newly installed at the factory, which previously manufactured magnetic discs.
Through this move, Fuji Electric plans to raise production capacity by 12,000 eight-inch wafers per month (equivalent to 22,000 six-inch wafers per month).

2.Amount of capital investment

18.5 billion yen

3. Commencement of facility operations

Scheduled to begin from May 2012

4. Background and objective

The usage of power semiconductors, which can contribute to saving energy, is spreading to a wide range of fields including industrial-use machinery such as machine tools and robots; hybrid and electric vehicles; consumer electronic products; and new energy fields such as solar and wind power generation. As a result, demand for power semiconductors is growing rapidly. Responding to this market environment, Fuji Electric intends to increase its production capacity with an eye toward expanding sales in fiscal 2012.
Fuji Electric’s front-end production system in Japan comprises one factory, the Matsumoto Factory located in Matsumoto City, Nagano Prefecture. By redeploying the Yamanashi Factory to establish a second front-end production base in Japan, the Company will disperse the risks related to earthquakes, power supply, and other factors to better ensure a stable supply of products to customers.
While this investment is intended to boost front-end production capacity, Fuji Electric is also considering, from the standpoint of local production for local consumption, the possibility of capital investment in back-end production facilities in China and other markets in Asia. The Company plans to formulate a policy on this matter this autumn.