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Toshiba and Rohm Join Forces to Produce Power Semiconductors, Bolstering EV Component Leadership

Toshiba and Rohm unite for a $830 million project subsidized by Japan, eyeing EV semiconductor dominance
Japan
t 6502.TSE r 6963.TSE Mid and Small Cap 2000 Tech 350 Blue Chip 150 Semicon 75
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Toshiba and Rohm have announced a strategic collaboration aimed at manufacturing power semiconductors, with a particular focus on meeting the increasing demand for components in electric vehicles (EVs). The Japanese industry and trade ministry will provide substantial support, subsidizing 120 billion yen of the total 380 billion yen investment planned by the two companies. The initiative involves the construction of production facilities in Ishikawa and Miyazaki prefectures, with Rohm specializing in cutting-edge silicon carbide power semiconductors known for high efficiency, while Toshiba excels in conventional silicon devices, catering to a diverse clientele, including rail and power companies.

This partnership is seen as a synergy opportunity, encompassing product development, sales channels, and manufacturing capabilities. Notably, Toshiba, undergoing a 2 trillion yen privatization led by Japan Industrial Partners, is set to go private on December 20, with Rohm being a significant investor in the consortium. Rohm, planning a substantial 510 billion yen investment in its silicon carbide business, aims to significantly boost sales of silicon carbide power devices over the next seven years.

In the competitive landscape of global power semiconductors, where demand is surging due to EV adoption and applications in data centers, Toshiba and Rohm recognize the importance of collaboration to contend with international players. The alliance seeks to enhance their positions, given Toshiba’s 3.7% and Rohm’s 3.2% shares in the global market. This move comes amidst growing competition in Japan, with German company Infineon Technologies making substantial investments in a plant scheduled to commence operations in 2026.

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