'World's No. 2 power semiconductor alliance?' Rohm, Toshiba and Mitsubishi Electric in integration talks

The Financial News, Tokyo — Correspondent Seo Hye-jin: Japan's Rohm, Toshiba and Mitsubishi Electric announced on the 27th that they are launching talks to integrate their power semiconductor businesses. If the integration goes ahead, the combined entity would command a 10% share of the global market, creating the world's second-largest power semiconductor alliance by simple aggregation.
The planned integration would cover Rohm's semiconductor business, the semiconductor operations of Toshiba Electronic Devices & Storage, a Toshiba subsidiary, and Mitsubishi Electric's power device business.
In a joint statement, the three companies said the integration would allow them "to secure a business scale and technological base that can compete in the global market and to maximize the corporate value of the integrated entity."
Rohm and Toshiba, ranked 12th and 10th respectively in global power semiconductor sales, were already in integration talks. Mitsubishi Electric, the world's fourth-largest player and Japan's biggest in this field, has now joined the discussions.
Rohm has a strong position in energy-efficient silicon carbide (SiC)-based power semiconductors for vehicles. Toshiba serves a broad customer base in power and other sectors with its mainstream silicon-based products. Mitsubishi Electric is particularly competitive in high-voltage applications such as industrial-use power devices.
By combining their respective expertise in design, development and sales, the three firms aim to create a comprehensive power semiconductor company capable of serving a wide range of applications. Nihon Keizai Shimbun (The Nikkei) reported that they also expect synergies in data centers and power infrastructure, where demand is rising with the spread of Artificial Intelligence (AI).
The specific structure of the business integration will be worked out in future talks. The Nikkei said options under consideration may include setting up a joint venture funded by all three companies.
Last month, Rohm received an acquisition proposal from Denso, a major auto parts maker in the Toyota Group, and set up a special committee to review the offer.
The Nikkei pointed out that the launch of new integration talks that include Mitsubishi Electric could affect Denso's acquisition proposal.
The integration talks are also aimed at strengthening the competitiveness of Japan's power semiconductor industry, as companies from China gain an edge in price competitiveness.
Since 2023, the Government of Japan has been stressing the need to restructure the power semiconductor industry and has used subsidies to encourage companies to do so.
Companies have agreed in principle on the need for restructuring, but concrete action has been limited. Amid deteriorating market conditions, any restructuring would inevitably involve cuts to personnel and facilities.
sjmary@fnnews.com Seo Hye-jin Reporter