Rohm, Toshiba, Mitsubishi Electric eye power chip integration

Power semiconductors, which control electric currents and voltage, are used for electric vehicles, home appliances and industrial machinery.

While demand for the chips is expected to increase globally, Japanese makers are smaller than their U.S. and European rivals. Chinese power chip manufacturers have also boosted their presence in recent years.

The three Japanese companies aim to form a world-class power semiconductor alliance by bringing together their strengths. The three-way talks may also be intended to fend off major Japanese auto parts maker Denso Corp.'s proposal to acquire Rohm.

Rohm, Toshiba and Mitsubishi Electric are expected to announce the start of the discussions as early as Friday.

Rohm already cooperates with Toshiba on power semiconductor production.

Following Denso's acquisition proposal, Rohm started considering the integration of its power semiconductor business with that of Toshiba. Mitsubishi Electric, which has called for the realignment of the power semiconductor industry, joined the pair.

Rohm's special committee, comprising outside board directors, will compare Denso's proposal with the possible three-way power chip business integration and decide which option will bolster Rohm's corporate value.

Rohm has participated in a scheme led by investment fund Japan Industrial Partners Inc. to acquire Toshiba, and contributed a total of 300 billion yen.

Meanwhile, Denso and Rohm plan to cooperate in developing EVs and next-generation automobiles. Denso held an equity stake of about 5 per cent in Rohm as of the end of September 2025.

The Japanese government has been urging domestic power semiconductor makers to work together to boost their international competitiveness.

[Copyright The Jiji Press, Ltd.]