Toshiba & Rohm: Joint Power Semiconductor Production

In a recent application submitted to Japan's Ministry of Economy, Trade, and Industry (METI), Toshiba and Rohm have unveiled plans to jointly invest 380 billion Japanese yen (approximately 2.7 billion USD) in a collaborative project aimed at manufacturing power chips. This strategic initiative is designed to fortify their crucial presence in the power semiconductor sector, particularly in support of the burgeoning electric vehicle (EV) industry. METI is poised to contribute a substantial subsidy, amounting to a maximum of one-third of the total project cost, equating to 120 billion Japanese yen (roughly 830 million USD).

Having formally presented their proposal to METI, both companies anticipate receiving a subsidy of up to 120 billion Japanese yen from the overall project budget of 380 billion Japanese yen. This financial support is integral to ensuring the stability of semiconductor supplies within Japan.

Presently, Toshiba and Rohm are in the process of establishing new manufacturing facilities in Nomi City, Ishikawa Prefecture, and Miyazaki City, Miyazaki Prefecture, respectively. Each facility will specialize in its distinct production objectives. Rohm additionally has plans to commence operations in Kunimi-cho, Miyazaki Prefecture, next year. Simultaneously, Toshiba is set to share semiconductor production in a new facility in Nomi City, Ishikawa Prefecture. Beyond these developments, both companies are poised to initiate the domestic production of semiconductor chips, which are currently sourced from international suppliers.

Scheduled for privatization on December 20, Toshiba's transition involves a domestic consortium led by Japan Industrial Partners (JIP), investing a substantial 2 trillion Japanese yen for the acquisition. Rohm, positioned as the leading investor within the consortium, is contributing 300 billion Japanese yen.

Looking ahead, Rohm outlines ambitious plans to invest a total of 510 billion Japanese yen in its silicon carbide (SiC) business over the next seven years, concluding in the 2027 fiscal year. By 2027, the company aspires to elevate SiC power device sales to 270 billion Japanese yen, representing a ninefold increase compared to the 2022 fiscal year. Entrusting Toshiba with traditional silicon semiconductors enables Rohm to channel its investments into cutting-edge product developments.

According to a recent survey conducted by Omdia, the global power semiconductor market reached a scale of 26.1 billion USD last year. Notably, there is a rising demand from electric vehicle manufacturers, with Tesla's incorporation of silicon carbide semiconductors in its vehicles serving as a prominent example. Moreover, these semiconductor components are gaining increased traction in the context of data center applications.

Currently holding global market shares of 3.7% and 3.2%, Toshiba and Rohm rank seventh and ninth, respectively, while Mitsubishi Electric claims the fourth position.