Daikin Semiconductor Revolution: Daikin Industries, a prominent Japanese air conditioner manufacturer, is strategically embracing custom-made semiconductors to enhance the energy efficiency of its products. In a landscape where tech giants like Apple and Amazon are heavily investing in cutting-edge custom chips, Daikin is joining the trend to elevate the performance of its air conditioners.
The company, headquartered in Osaka and anticipating the production of 10 million home air conditioners in the current financial year, has disclosed its collaboration with a Japanese design firm. Together, they aim to customize logic chips specifically for the inverters used in Daikin’s air conditioners. Inverters play a crucial role in adjusting the speed of an air conditioner’s motor to optimize energy usage. While these are standard in Japan and the European Union, they are less prevalent in the United States.
The decision to venture into custom chips comes with a recognition that they may incur higher costs than off-the-shelf alternatives. However, Daikin emphasizes that the benefits, such as improved energy efficiency and the ability to reduce the use of other components, outweigh the initial investment. According to a Daikin executive, these custom chips are integral to unlocking the full potential of an air conditioner’s compressor and motor, pushing the boundaries of chip performance.
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Yuji Yoneda, the General Manager of Daikin’s Technology and Innovation Center, highlighted the necessity of enhancing chip performance to fully exploit the capabilities of air conditioners. Daikin plans to roll out these custom chips in high-end air conditioners starting in 2025, with ambitions to incorporate them into approximately 20% of units by the end of the decade.
The company is not solely focusing on logic chips; it is also delving into the customization of power modules that manage the air conditioner’s electricity supply. By adopting a comprehensive approach to chip customization, Daikin aims to position itself at the forefront of energy-efficient air conditioning solutions.
Recognizing the importance of talent in this endeavor, Daikin has been actively recruiting engineers from the semiconductor industry to contribute to the customization efforts. This move comes at a time when the domestic semiconductor industry is experiencing increased competition due to substantial investments.
Daikin’s strategic shift towards energy efficiency aligns with the broader global trend of heightened awareness and demand for environmentally conscious technologies. As the International Energy Agency predicts a significant surge in the number of air conditioners globally, expected to surpass 5.6 billion units by 2050, Daikin’s emphasis on customized semiconductor solutions reflects its commitment to staying ahead in a competitive market.
Our Reader’s Queries
What is the ranking of Daikin in the world?
Daikin’s market cap as of January 2024 stands at an impressive $46.03 billion, making it the 384th most valuable company in the world according to our data.
What does Daikin America make?
Daikin’s fluoropolymers and chemicals possess a diverse range of exceptional properties, making them the perfect choice for various industries such as aerospace, architecture, automotive, consumer cookware, energy storage, filtration, home goods, industry, medical, nonwovens, optics & displays, paper & packaging, oil & gas, renewable energy, semiconductor, and more. Their unique features make them stand out, and they are easy to use and understand, even for a child.
Who is the largest semiconductor company in India?
HCL Technologies Ltd, Vedanta Ltd, Tata Elxsi Ltd, Dixon Technologies (India) Ltd, and Moschip Technologies Ltd are the top 5 semiconductor stocks in India based on market capitalisation. These companies are leading the way in the semiconductor industry and are worth keeping an eye on for potential investment opportunities.
What is the history of Daikin Industries Ltd?
In 1924, Daikin Industries Ltd. was established by Akira Yamada, a Japanese engineer who initially focused on producing aircraft parts, metal pressing, drawing, and radiator tubes. The company was originally named Osaka Kinzoku Kogyosho Ltd, which means metal in Japanese. Today, Daikin Industries Ltd. is a global leader in air conditioning and refrigeration systems, with a strong commitment to innovation and sustainability.