Strengthen R&D to Stimulate Innovation
- Strengthen R&D to stimulate innovation
Toshiba Group boasts a technological prowess, experience, and a proven track record in the manufacturing industry cultivated over the course of more than 140 years of operations. Through the provision of products and services that combine our strengths in the physical domains with our strengths in the field of AI-based digital technology, which is built on more than 50 years of research, we will contribute to finding solutions to social issues. With the aim of realizing a safe, secure, and comfortable society for everybody, we will strengthen our Research and Development (R&D) efforts to create the type of innovation that supports society and contributes to the advancement of an information-driven society.
KPIs to Be Addressed and Achievements
Ratio of R&D expenses to sales (%)
| FY2021 Achievement | 4.6 ％ |
|---|---|
| FY2022 Target | 5.0 ％ or higher |
| FY2023 Target | 5.0 ％ or higher |
| FY2021 Achievement | 4.6 ％ |
|---|---|
| FY2022 Target | 5.0 ％ or higher |
| FY2023 Target | 5.0 ％ or higher |
FY2021 Key Achievements
- Developed a transparent Cu2O solar top cell that has achieved a world-leading conversion efficiency (PCE) of 9.5%
- Developed an “Electricity markets trading strategy AI” for renewable energy aggregation
- Launched world’s first commercial quantum-secured metro network in London in defense against heightened threats to network security
- Began providing an app to visualize environmental contributions in line with the move towards electronic receipts
R&D Strategy
Global efforts toward carbon neutrality is accelerating with a focus on renewable energy conversion. In addition, with the growing threat of supply chain disruptions due to the increased severity of natural disasters, aging social infrastructure, a reduction in the working age population, pandemics, and geo-political risk, as well as the increased threat of cyber-attacks, the demand for infrastructure resilience is increasing. Under the strategies of Energy × Digital and Infrastructure × Digital, which aim to accelerate the evolution of the energy and infrastructure sectors through a move to digitization, we are working to provide society and our customers with optimal solutions to the issues they face by leveraging our strengths in having strongly differentiated devices, components, and cyber physical systems (CPS) technologies.
With the Energy × Digital strategy, we promote a move towards carbon neutrality in a seamless energy chain that encompasses “Generate”, “Transfer”, “Storage” and “Use Smartly”. With the Infrastructure × Digital strategy, we provide products, technology, and services that combine our know-how accumulated over many years on plant design, operations, and maintenance with AI and security digital technologies, based on the resilient life cycle of infrastructure works that encompasses “Prepare”, “Find”, “Protect” and “Maintain”. When it comes to semiconductors and storage, which are highly differentiated devices, we are continuing to strengthen our product appeal by enhancing mass production lines and promoting the development of compound semiconductors.
Under Toshiba Group’s Basic Commitment, “Committed to People, Committed to the Future.”, we will use these initiatives to work tirelessly to find resolutions to the pressing social issues of climate change and infrastructure resilience.
Toshiba Group R&D Structure
Toshiba Group’s R&D structure comprises Toshiba’s R&D divisions along with the R&D divisions and design and technology-related divisions at its key Group companies, with R&D carried out through efficient delegation of functions between these respective divisions. Toshiba’s R&D division is working to deepen the Company’s underlying technologies from a medium- to long-term perspective, and is engaged in research targeting new business domains as well as innovative and cutting-edge R&D.
The R&D divisions and design and technology-related divisions at our key Group companies support the underlying technologies of their respective business domains, develop new products and differentiated technologies in line with business plans, and engage in efforts to commercialize and mass-produce products that can meet the demands of customers. Through this intra-division close-cooperation, we are able to deliver new products to the market.
R&D Expenses
Toshiba has defined strengthening R&D to stimulate innovation as one of its material issues, and has set the ratio of R&D expenses to sales as a KPI.
The ratio of R&D expenses to sales in Toshiba Group stands at approximately 5%.
Ratio of R&D expenses to sales
| FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 (Target) |
FY2023 (Target) |
|---|---|---|---|---|---|---|
| 4.5％ | 4.5％ | 4.7％ | 4.9％ | 4.6％ | 5.0％ or higher | 5.0％ or higher |
| FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 (Target) |
FY2023 (Target) |
|---|---|---|---|---|---|---|
| 4.5％ | 4.5％ | 4.7％ | 4.9％ | 4.6％ | 5.0％ or higher | 5.0％ or higher |
R&D expenses (Achievements)
| FY2017 | FY2018 | FY2019 | FY2020 | FY2021 |
|---|---|---|---|---|
| 178.7 billion yen* | 167.5 billion yen | 158.9 billion yen | 150.5 billion yen | 151.9 billion yen |
| FY2017 | FY2018 | FY2019 | FY2020 | FY2021 |
|---|---|---|---|---|
| 178.7 billion yen* | 167.5 billion yen | 158.9 billion yen | 150.5 billion yen | 151.9 billion yen |
- Excludes expenses related to the memory business field. Including this field, total R&D expenses come to 297.8 billion yen.
Breakdown of R&D expenses (FY2021)
Examples of R&D that contribute to solving social issues
Development of a Cu2O solar top cell that has achieved a world-leading conversion efficiency (PCE) of 9.5%
Corresponding social problem: Response to climate change
Toshiba has successfully achieved the world’s highest PCE of 9.5%*1 in transparent cuprous oxide (Cu2O) solar top cell, which is expected to be utilized to realize low-cost, high-efficiency tandem solar cells, by controlling impurities in the power generation layer and expanding the power generation area from previous 3x3 mm2 to 10x3 mm2. It was also verified that a Cu2O-Si tandem solar cell, which layers a Cu2O solar cell over a silicon (Si) solar cell, has the potential to surpass PCE of 26.7%*2, the highest reported for a Si solar cell. If this solar cell were to be installed on an electric vehicle (EV), the vehicle is estimated to travel for approximately 37 km per day without recharging*3. As part of efforts towards transportation electrification, which is one of the challenges of achieving carbon neutrality, we aim to achieve our target of completing technology for developing practically sized Cu2O-Si tandem solar cells by FY2025.
- In-house investigation as of September 2022
- World’s highest efficiency rate for Si solar cells as of September 2022; published in Nature Energy 2, 17032 (2017)
- Calculated by referring to the value on the PV-Powered Vehicle Strategy Committee Interim Report, published by New Energy and Industrial Technology Development Organization (NEDO)
Transparent Cu2O solar cell with PCE of 9.5%
Artist’s impression of Cu2O-Si tandem solar
cells installed in an EV
Development of an “Electricity markets trading strategy AI” for renewable energy aggregation
Corresponding social issue: Response to climate change
Toshiba has developed an “Electricity markets trading strategy AI” for renewable energy aggregation that supports strategic trading by electricity market operators. Next Kraftwerke Toshiba Corporation and Toshiba Energy Systems & Solutions Corporation participated in a demonstration experiment using the AI that began on December 1, 2021, as part of the Ministry of Economy, Trade and Industry’s Renewable Energy Aggregation Demonstration Project*1. The AI optimizes strategic transactions for each aggregator, and thereby maximizes profits, based on the forecasts for renewable energy power generation*2 and market prices made using Toshiba’s proprietary high-precision forecasting technology, a technology highly rated by an electric power company. Through its comprehensive support for renewable energy aggregators, Toshiba will address climate change by contributing to the promotion of renewable energy as a primary power source, and to a stable supply of electricity over the long term.
- FY2021 Renewable Energy Aggregation Demonstration Project was completed on March 29, 2022.
- Grand prize winner in a solar power generation forecasting technology contest sponsored by Hokkaido Electric Power Co., Inc.
Launch of world’s first commercial quantum-secured metro network in London
Corresponding social issue: Strengthening cyber resilience
In preparation of the heightened threat to network security in this age of quantum computing, on April 26, 2022, Toshiba, Toshiba Digital Solutions Corporation, and BT Group plc (U.K.) launched the trial of a world first*1 commercial quantum-secured metro network in London, U.K. Quantum-secured communications send encryption keys to encrypt data using photons, a type of quantum. We send encryption keys by using quantum mechanical properties that the photon can neither be split nor have its state fully copied, meaning the encryption key cannot be stolen and thereby rendering eavesdropping theoretically impossible. The use of this encryption technology allows data communication infrastructure to be protected from cyber attacks, and data to be used safely and stored for a long time. This trial service should demonstrate how the Quantum Key Distribution (QKD) service offered by Toshiba and Toshiba Digital Solutions Corporation can be used to send data safely between locations, and it is hoped that it will show our customers the benefits that quantum-secured communications networks can bring to their businesses.
Moving forward, we will continue to develop quantum-secured communications technology and to strengthen cyber resilience, something increasingly being demanded in this information-based society.
- According to the study conducted by Toshiba and BT Group plc; as of April 27, 2022
- BT and Toshiba to build world’s first quantum-secured commercial metro network across London
Toshiba, Toshiba Digital Solutions Corporation, BT Group plc (October 5, 2021) - BT and Toshiba launch first commercial trial of quantum-secured communication services (April 27, 2022)
Launched an app that visualizes environmental contributions using our electronic receipt service
Corresponding social issue: Response to climate change
Toshiba Data Corporation has launched a web application which uses the Smart Receipt*1 electronic receipt service developed and operated by Toshiba Tec Corporation. This app enables estimation*2 and quantification of the amount of paper-receipt (cm) and CO2 (liters) to be reduced with the introduction of electronic receipts. The app provides a visual representation of customer behavior that is considered friendly to the environment and society in the form of a numerical value, with an in-app polar bear character expressing gratitude for behavioral changes. It is an app that allows you to contribute to the realization of SDG 13 “Take urgent action to combat climate change and its impacts” while also seeing and enjoying how much contribution you have actually made.
- Smart Receipt is a registered trademark of Toshiba Tec Corporation.
- Receipt lengths are estimates and may differ from the actual lengths.
These sample images of the app show the app’s polar bear character conveying gratitude for the individual’s behavioral changes that are environmentally friendly.
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