Denso, one of the world’s top automotive semiconductor manufacturers and a key supplier to Toyota, may consider spinning off its chip business, which generates around 420 billion yen ($3.1 billion) in sales, the company’s chief technology officer said.
Well known as the world’s second-biggest auto-parts maker, Denso has also quietly built up a presence in automotive chips.
Now, with semiconductor-related capital expenditures totaling around 160 billion yen over the past three years, Denso ranks as the world’s fifth-largest supplier of automotive chips by sales.