Prime Highlights
- Rohm, Toshiba, and Mitsubishi Electric are entering merger talks that could create the world’s second-largest power semiconductor group.
- The talks come as Rohm faces a separate 1.3 trillion yen takeover bid from Toyota affiliate Denso.
Key Facts
- Rohm and Toshiba have collaborated in power chip production since 2023.
- A merger announcement is expected till the end of March
Background
Japan’s three major power chip companies, Rohm, Toshiba, and Mitsubishi Electric, are preparing to hold formal talks about combining their power chip operations, a move that could create the world’s second-largest power semiconductor group, behind only Germany’s Infineon.
If the deal goes through, it would be a big step for Japan’s semiconductor industry, which has struggled with being divided and lacking financial strength.
The talks carry extra weight as they come at a particularly critical moment for Rohm. Toyota affiliate Denso, has made a separate offer to acquire the chipmaker for approximately 1.3 trillion yen.
For Rohm, the three-way merger represents more than just a business opportunity because it enables them to maintain their independence while acquiring the necessary operational scale to compete in the market during the current surge of power chip demand from the electric vehicle and renewable energy sectors.
Rohm and Toshiba have established their partnership from existing relationships. Rohm and Toshiba have been working together in power chip production since 2023, with Toshiba handling traditional silicon chips while Rohm focuses on newer silicon carbide technology.
Tokyo has supported this type of industry consolidation through its long-standing efforts because the city considers this process essential for maintaining Japan’s position in the global semiconductor supply chain.
