ROHM Intensifies Chip Tie up with Toshiba

ROHM Co., Ltd. has already forwarded a proposal to Japan Industrial Partners Inc. (JIP) in a bid to commence negotiations on its planned alliance with Toshiba Electronic Devices & Storage Corporation.

Accordingly, the proposal aims to initiate detailed negotiations. So far, there are no definite prospects after making the proposal. Nonetheless, earlier statements made by the companies confirmed possible collaboration on chip production.  

Taps Respective Synergies

Recently, as the semiconductor industry has become increasingly competitive, a wide range of collaboration is essential. Particularly, in a bid to make growth more sustainable. For that reason, ROHM and Toshiba are exploring ways to make use of their respective synergies.

ROHM’s proposal aims to strengthen business alliances in various business activities. This includes technology development, production, sales, procurement, and logistics. Moreover, the proposal aims for a deeper collaboration in the manufacture of power semiconductors.

Background of Cooperation

In December, Japan’s Ministry of Economy, Trade and Industry (METI) recognized the plan of ROHM Co., Ltd. and Toshiba Electronic Devices & Storage Corporation to collaborate in the manufacture of power devices. Accordingly, the plan, which aims to increase the volume production of power devices, is a measure that supports the Japanese government’s target of securing a stable semiconductor supply.

Particularly, ROHM and Toshiba Electronic Devices & Storage will respectively make intensive investments in silicon carbide (SiC) and silicon (Si) power devices. In addition, they will effectively enhance their supply capabilities and utilize other party’s production capacity.

Power devices are essential for supplying and managing power supply in all kinds of electronic equipment, and for achieving a carbon-free, carbon-neutral society. Currently, demand will likely see continued growth.

Specifically, in automotive applications, the development of more efficient, smaller, and lighter electric powertrains has advanced along with the rapid expansion in vehicle electrification. Meanwhile, in industrial applications, a stable supply of power devices and improved characteristics have been required to support increasing automation and higher efficiency requirements.

Long-Planned Partnership

Earlier, ROHM has already announced its participation in the privatization of Toshiba. Nonetheless, this investment did not serve as the starting point for manufacturing collaboration between the two companies. Under intensifying international competition in the semiconductor industry, ROHM and Toshiba Electronic Devices & Storage have been considering collaboration in the power device business for some time. Thus, resulting in the joint application.

ROHM and Toshiba Electronic Devices & Storage will collaborate in manufacturing power devices, through intensive investments in SiC and Si power devices. Moreover, the objective is to enhance both companies’ international competitiveness. In addition, the companies will also seek to contribute to strengthening the resilience of semiconductor supply chains in Japan.

1 April 2024-