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Rohm and Toshiba Strengthen Ties in Power Semiconductor Sector

CEOs Discuss Increased Collaboration in Production and Development, Enhancing Efficiency and Market Competitiveness
Japan
r 6963.TSE t 6502.TSE Blue Chip 150 Mid and Small Cap 2000 Tech 350 Semicon 75
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In a strategic move to bolster their presence in the power semiconductor market, Rohm and Toshiba are deepening their partnership, extending beyond production to include development. Rohm CEO Isao Matsumoto, in a recent interview to Nikkei, highlighted the plan to initiate joint development of power-saving devices, following a smooth start to their collaborative production efforts.

This extended cooperation comes as the demand for power semiconductors, essential in efficiently controlling motors for reduced electricity consumption, is surging. This surge is particularly driven by the growing market for electric vehicles (EVs) and the expanding electricity infrastructure.

The partnership leverages the distinct strengths of both companies. Rohm boasts prowess in EV parts, while Toshiba is recognized for its expertise in rail and power applications. By specializing in the production of semiconductors in their respective areas of expertise, the companies aim to maximize factory utilization rates and minimize investment costs for increased output.

This collaboration is seen as crucial in the highly competitive and crowded Japanese semiconductor landscape. Both companies are gearing up for this enhanced partnership with production facilities in Ishikawa and Miyazaki prefectures. This project, significantly supported by subsidies from the Ministry of Economy, Trade and Industry, underscores the strategic importance of this sector to Japan’s industrial landscape.

Moreover, Rohm’s involvement in Toshiba’s upcoming privatization, with a significant investment, reflects a deeper financial and strategic integration between the two companies. This move is anticipated to yield dividends and additional returns through synergies, further propelling their joint venture in the semiconductor arena. The strategic partnership marks a pivotal step in strengthening their global competitiveness and technological capabilities in a rapidly evolving market.

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