Toshiba sees power management chips as an immediate profit driver as the demand for electric vehicles (EVs) grows, according to the company’s CEO.

Japan-based Toshiba announced it will spend $175.57m to double its power chip production. 

“We want to expand (production) capacity for power chips as quickly as possible,” CEO Taro Shimada said, following the completion of its $14bn buyout by Japan Industrial Partners. 

“We will make optimal resource allocation to growth areas and potential profit both in Japan and overseas,” he added.

Between 2023 and 2028, GlobalData forecasts that the global EV market will see a compound annual growth rate of 16.1% to reach 53.9 million units as demand and supply side factors spur on sales for lower-emission vehicles globally, according to GlobalData’s Tech, Media, & Telecom Predictions 2024 report.

BEV production will overtake that of hybrids by 2028 to become the leading electrified driving option on the market by the end of this period, according to the report. 

The global BEV landscape is becoming increasingly competitive as the supply chain bottleneck eases and the market becomes better supplied.

The news follows the UK Government pledging £4.8m ($6.08m) towards connecting EVs to homes and businesses in a bid to save UK citizens money on their energy bills. 

Bidirectional charging points could allow the power stored in EV batteries to be directed towards homes and businesses to power other electronic devices. 

The V2X charging system could benefit UK businesses by reducing their reliance on fossil fuels, even during power surges.