Toshiba Plans Partnership With Rohm For Semiconductor Production

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  • This development coincides with the growing importance of power semiconductors

Toshiba has announced a partnership with Rohm Co, where they will spend almost 388.3 billion yen to expand their production, with one-third of the outlay covered by the industry ministry.

Through this collaboration, Toshiba and Rohm will expand production at their chip factories in Ishikawa and Miyazaki.

Of the total cost, up to 129.4 billion yen will be subsidized by the government, the Ministry of Economy, Trade and Industry.

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“We are hoping this will be the first step toward creating a world-leading chipmaker,” Industry Minister Yasutoshi Nishimura.

Toshiba is on the verge of delisting as a consortium led by Japan Industrial Partners Inc, with Rohm as a member, gains a majority stake in the conglomerate.

This development coincides with the growing importance of power semiconductors, which can manage high voltages and substantial electric currents and find widespread application in electric vehicles.

Toshiba holds a 3.7% share of the global market, and Rohm 3.2%, putting them in seventh and ninth place, respectively, while compatriot Mitsubishi Electric ranks fourth.

In the midst of Japan’s crowded market, Toshiba and Rohm recognized that collaboration was essential for them to effectively compete against global rivals who benefited from economies of scale. For instance, Infineon Technologies from Germany is making a significant 5 billion euros ($5.4 billion) investment in a factory scheduled to commence operations in 2026.

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