In a statement Japan’s Mitsubishi Electric Corp said, it has agreed to buy a part of Sharp Corp’s plant in western Japan in order to meet growing demand for power management chips used in electric vehicles (EVs).

The development comes in the wake of Infineon Technologies AG and ON Semiconductor Corp, who incidentally are Mitsubishi’s rivals, ramping up production of power management chips, which are used to efficiently control electric power in cars and electronic devices.

Mitsubishi, a major supplier of such chips to Toyota Motor Corp said, it will invest $187 million (20 billion yen) to acquire two idled facilities at Sharp’s chip plant and launch production lines there.

The new plants which will begin operations in November 2021, will process wafers for power management chips, said Mitsubishi.

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