Japanese giants Toshiba Corp. and Rohm Co. have unveiled plans for a collaborative venture in the power semiconductor sector, as confirmed by sources closely acquainted with the matter on Thursday. The strategic alliance between the two entities involves a substantial investment of 380 billion yen ($2.6 billion) aimed at ramping up their production capabilities in power semiconductors, crucial components widely utilized in electric vehicles due to their capacity to manage high voltages and substantial electric currents.
Significantly, Japan’s Ministry of Economy, Trade and Industry is anticipated to share a substantial portion, approximately 130 billion yen, of the investment burden, underscoring governmental support for this venture.
The collaboration between Toshiba and Rohm will manifest in the establishment of new manufacturing facilities in Ishikawa and Miyazaki prefectures, respectively, as disclosed by insiders familiar with the plans.
This initiative arises amidst Toshiba’s imminent delisting this month following a majority stake acquisition of 78.65 percent by a consortium led by Japan Industrial Partners Inc., of which Rohm is a constituent.
Recognizing the surging global demand for power semiconductors, Toshiba and Rohm are strategically positioning themselves as major suppliers in this evolving landscape. Fuji Keizai Co., a prominent research firm, forecasts an exponential growth trajectory for the global power semiconductor market, projecting a fivefold increase from approximately 2.7 trillion yen in 2022 to around 13.4 trillion yen by 2035. This growth underlines the significance of such collaborative efforts to meet burgeoning market demands and drive technological advancements in the industry.
