On January 15, Mitsubishi Electric unveiled its updated R&D strategy, highlighting its commitment to advancing technologies like electronic-photonic converging integration (EPCI) besides an increased investment of JPY100 billion (approx. US$6.4 million) in R&D from the fiscal year 2024 to 2030, a 1.7-fold increase over its initial plan. This investment will be funneled into collaborations between industry, academia, and government, supporting efforts to create game-changing technologies.
During the online briefing, which marked the first of its kind since 2019, Mitsubishi Electric's executive officer and CFO Tomonori Sato and Senior Executive Officer Oka Tohru outlined the company's R&D vision. They emphasized that while the company would continue with existing initiatives, its primary focus would be on pushing boundaries to develop breakthrough innovations.
For fiscal year 2024, Mitsubishi Electric allocated JPY235 billion to R&D, maintaining a trend of increasing investments in 2020. The company expects R&D expenses to grow to approximately JPY300 billion by fiscal year 2030. The new JPY100 billion investment plan for 2024-2030 includes a JPY40 billion boost from the previous estimate of JPY60 billion, further strengthening its commitment to innovation.
The company also plans to break down vertical divisions within its business units to foster greater organizational integration and enhance external partnerships, particularly with startups. Notable collaborations include those with Japanese companies such as NCT, which specializes in gallium oxide power semiconductors, and QunaSys, a quantum computing startup. Other key partnerships include US-based Cartken, known for automated delivery robots, and Swedish startup Scibreak, which focuses on circuit breakers.
Mitsubishi Electric's R&D agenda includes several cutting-edge areas, with a focus on "Foresight Technology." These areas include EPCI, carbon recycling, hydrogen energy-related green technologies, and quantum technology. The company intends to leverage its expertise in optical technology and compound semiconductors to advance the development of optoelectronic integrated components. The market for this technology is expected to reach JPY2 trillion in the coming years.
Oka Tohru highlighted a shift in Mitsubishi Electric's approach to R&D, moving away from its historically self-contained development model to one that embraces open innovation. The company aims to strengthen cooperation with academic institutions, such as the University of Tokyo, Kyoto University, and Taiwan's Industrial Technology Research Institute, to accelerate advancements.
In addition to fostering academic partnerships, Mitsubishi Electric is focused on boosting its intellectual property portfolio. The company aims to increase the proportion of patents related to generative AI and other AI technologies from 3% in 2020 to 15% by 2025.
The company, which has long been a leader in factory automation and air conditioning equipment, is now exploring new ways to utilize AI and data analytics to create innovative services. This expanded R&D investment and collaborative approach signal Mitsubishi Electric's dedication to remaining at the forefront of technological advancements.
Article translated by Jingyue Hsiao
