Toshiba and Rohm Power Up: In a strategic move, Toshiba and Rohm announced a joint investment of 388.3 billion yen ($2.7 billion) to venture into collaborative power chip production. This marks the first significant partnership since Rohm’s involvement in the $14 billion buyout of Toshiba. The Japanese industry ministry has been advocating for such collaborations to address concerns about the fragmented nature of the country’s power chip industry, aiming to compete with industry giant Infineon Technologies AG.
To support this endeavor, the Japanese industry ministry disclosed plans to subsidize up to 129.4 billion yen, constituting a third of the total investment. This initiative aims to enhance the competitiveness of the domestic power chip industry, particularly as power chips play a crucial role in efficiently controlling electric power in various applications, including cars, electronic devices, and industrial equipment. The ministry anticipates the global power chip market to reach 5 trillion yen by 2030.
As part of this ambitious plan, Rohm is set to invest 289.2 billion yen in a new plant located in Miyazaki Prefecture on Kyushu, the southern island of Japan. This facility will focus on producing silicon carbide power chips, recognized for their appeal to electric car manufacturers due to their capability to handle high voltages and improved efficiency. Meanwhile, Toshiba’s contribution of 99.1 billion yen will go towards a cutting-edge 300mm fabrication plant in Ishikawa, central Japan, dedicated to manufacturing silicon power chips.
This investment aligns with the companies’ broader strategy outlined last year, involving a 125 billion yen commitment to more than double power chip production. Both Toshiba and Rohm intend to sell the chips produced under their respective brands, creating a collaborative ecosystem in the competitive power chip market.
It’s worth noting that this collaboration follows Rohm’s recent decision to invest 300 billion yen as part of a consortium led by private equity firm Japan Industrial Partners (JIP) to take Toshiba private. Despite this recent association, the companies clarified that the collaboration on power chip production had been under consideration for some time and was not directly tied to Rohm’s involvement in the Toshiba buyout.
As Japanese power chip manufacturers, including Toshiba, Rohm, Mitsubishi Electric, and Fuji Electric, extend their global footprint, this joint venture signifies a concerted effort to strengthen their position in a rapidly evolving and competitive industry landscape.