Mitsubishi, Toshiba, Rohm in Chip Merger Talks

Mitsubishi Electric Corp, Toshiba Corp and Rohm Co said Friday they have agreed under a memorandum of understanding to begin talks on merging their power semiconductor businesses.

In March 2024, Rohm announced discussions with Toshiba for a merger of its power semiconductor unit with that of Toshiba Electronic Devices & Storage Corp, with the two companies aiming to leverage their strengths in power chips for vehicles. 

Mitsubishi Electric, which specializes in industrial-based power semiconductors, subsequently joined the integration talks.

Power chips can be used in a wide range of applications, from electric infrastructure to servers for data centers needed for artificial intelligence.“The proposed integration will create a global competitive business in terms of both scale and technology,” Mitsubishi Electric said in a press release.

The move is expected to serve as a counterweight to potential takeover efforts by Denso Corp., which agreed in September 2024 with Rohm to consider a semiconductor partnership and later acquired a 5 percent stake in the Kyoto-based chipmaker.

The major auto parts maker was considering making a tender offer to acquire all remaining outstanding Rohm shares, according to sources.