Denso Proposes Acquiring Chipmaker Rohm
Major auto parts supplier Denso Corp. has proposed acquiring major chipmaker Rohm Co., it was learned Friday (March 6).
With the envisaged acquisition, Denso aims to stably procure power semiconductors, which control electric current and voltage, in view of the expanding market for electric vehicles.
If Denso, which already has invested in Rohm, buys all remaining shares in the company, the cost would likely far exceed 1 trillion yen. As of the end of September last year, Denso held an equity stake of some 5 per cent in Rohm, which is listed on the Tokyo Stock Exchange's top-tier Prime section.
On power semiconductors, Rohm has collaborated with Toshiba Corp., while Denso has cooperated with Fuji Electric Co. Mitsubishi Electric Corp. has also shown interest in industry realignment.
"We have been considering various strategic options, including purchasing Rohm shares," Denso, also listed on the TSE Prime section, said in a statement Friday.
In a separate release, Rohm said, "It is true that the company has received a proposal from Denso" that includes the acquisition of Rohm shares.
In May 2025, the two Japanese companies reached a basic agreement to work together in the semiconductor sector, specifically planning to cooperate for automobile electrification and the development of next-generation vehicles using digital technologies.
Global demand for power semiconductors, used in not only EVs but also consumer electronics and industrial machinery, is expected to increase globally.
Major Japanese makers of power semiconductors are smaller than their US and European rivals. Chinese makers have also boosted their presence in recent years.
The Japanese government has financially supported domestic makers' collaboration to help improve their international competitiveness.
[Copyright The Jiji Press, Ltd.]
