Rohm, Toshiba, Mitsubishi Electric to Begin Power Chip Integration Talks

Tokyo/Kyoto, March 27 (Jiji Press)–Rohm Co., Toshiba Corp. and Mitsubishi Electric Corp. have agreed in principle to start discussions on integrating their power semiconductor operations, the three Japanese firms said Friday. They intend to survive intensifying global competition by unifying their technologies and production capabilities. The move would create the world’s second-largest alliance for power chips, used to control electric currents and voltage, after German chipmaker Infineon Technologies. The three companies are expected to set up a new entity by combining their power semiconductor divisions, with details, such as the timing of the establishment and their investment ratios, to be discussed from now. The unification “is expected to contribute significantly to the development of a wide range of customer businesses and industrial sectors, as well as maximize the corporate value of the integrated entity,” they said in a statement. Rohm aims to create new products through joint development with Toshiba and Mitsubishi Electric, and reduce costs through plant consolidation. “We would be able to achieve a high synergy also in the artificial intelligence data center market, which is expected to expand dramatically,” as the integration will allow the three firms to supplement their product lineups, Rohm President Katsumi Azuma told reporters in the western Japan city of Kyoto, where the company is headquartered. Power semiconductors are used in a range of products, such as electric vehicles, home appliances and industrial machinery, and their demand are expected to increase globally. While Japanese power semiconductor makers have maintained a certain level of competitiveness on the global arena, the market shares of Rohm, Toshiba and Mitsubishi Electric have remained below 10 pct. They also face increasing competition from Chinese makers. Rohm and Toshiba have cooperated on power chip production. They started to accelerate negotiations on the integration of their power semiconductor operations after it came to light earlier this month that major Japanese auto parts maker Denso Corp. has proposed acquiring Rohm. Mitsubishi Electric, which has called for the realignment of the domestic power semiconductor industry, joined the talks between Rohm and Toshiba. END [Copyright The Jiji Press, Ltd.]