Daikin Turns to Custom Chips for AC Energy Savings

Major Japanese air conditioner manufacturer Daikin Industries plans to employ custom semiconductor chips. This will enable them to maximize energy savings in their AC units.

The move comes as big tech companies like Apple and Amazon are investing heavily in chips. This has attracted more companies with older chips that want custom ones, too.

Daikin Boosts Energy Efficiency: Custom Chips for 10 Million AC Units Annually

According to a Daikin executive, the company ships approximately 10 million home air conditioning units yearly.Now, they aim to enhance performance in those products by partnering with a domestic design firm.The purpose of this collaboration is to customize the logic chips leveraged in AC inverter technology.

Normally, inverters allow air conditioners to adjust motor speed based on cooling needs, reducing overall energy consumption.While commonplace in Japanese and European Union AC units, inverter-based designs remain less prevalent in the US market.

Daikin's custom chips offer superior energy savings returns compared to off-the-shelf chips despite increased upfront costs.Additionally, the tailored parts allow for component reduction in other areas of the AC products.

According to Yuji Yoneda, general manager of Daikin's technology and innovation center:

To bring out the full performance of an air conditioner's compressor and motor, we need to improve chip performance, or we will hit a limit.

The air conditioner market is projected to expand steadily in the coming years. Making Acs more efficient is now essential for both customers and power companies hoping to balance growing power demands.

Right now, the usage of custom chips is not popular yet, but big companies think they're worth it. They believe using these chips smartly brings good returns. For Daikin, tailored silicon appears set to offer that extra edge to keep driving the future of energy-efficient cooling.

Custom Chips and Energy Efficiency to Transform Cooling Experience

Daikin plans to roll out custom chips in premium air conditioners by 2025. They aim to use these chips in 20% of units by the end of the decade.As mentioned earlier, the executive claimed these chips are not cheap enough for an average individual to afford them.

But know that this chip will help reduce the energy that different components use both at home and in offices. The company, a pioneer in air conditioning since 1951, also delves into custom power modules.

These modules help manage the air conditioner's electricity supply for improved efficiency.

Facing competition, Daikin hires chip industry engineers to enhance customization efforts.The company sees energy efficiency as a positive force that will push the air conditioner industry forward.

According to the International Energy Agency, the global air conditioner market is expected to triple to 5.6 billion units by 2050.

With a history of innovation, Daikin hopes these tech upgrades will keep them cool in a hot market. Recall that earlier this year, the company shared its plans to make India its largest AC manufacturing place.

The goal is to triple Made in India exports by 2025. The executive said in an interview with the Financial Times that he sees a big opportunity due to Europe's push for energy efficiency.

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