Toshiba and Rohm to manufacture power management chips
The Japanese government says it will support this joint project between domestic companies with up to 120 billion yen (USD 830 million) in subsidies.
Toshiba and Rohm are two of Japan's industrial powerhouses, and they have just confirmed a new partnership to boost production of power semiconductors at factories they are building in Ishikawa and Miyazaki.
Global demand for power semiconductors is booming thanks largely to the rise of the e-mobility and data centre markets. According to Omdia, the sector grossed USD 26.1 billion last year.
Toshiba and Rohm already occupy top 10 places in the market (Toshiba is at 3.7%; Rohm at 3.2%) but they want more. Toshiba is strong in conventional silicon devices, while Rohm's expertise lies in cutting-edge power semiconductors made with silicon carbide. Rohm says it will invest 510 billion yen in its silicon carbide business to fiscal 2027, and believes it can make significant savings/efficiencies with this JV.
It's been reported that Toshiba and Rohm will spend up to 300 billion yen on the project, and will receive subsidies of about 120 billion yen to 130 billion yen from the Japanese government.
The two companies already have a working relationship. Toshiba is set to return to private ownership in a few days, and Rohm is the largest investor in the main ownership consortium.