Toshiba and ROHM invest in power semiconductors, supported by Japan's Ministry

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Toshiba and ROHM invest in power semiconductors, supported by Japan's Ministry
Credit: © Reuters.

TOKYO - Toshiba (OTC: TOSYY ) Corp. is partnering with Rohm Co. to invest 380 billion yen ($2.8 billion) in the development of power semiconductors, a critical component for electric vehicles (EVs). This strategic move is bolstered by a subsidy of up to 130 billion yen ($960 million) from Japan's Ministry of Economy, Trade and Industry (METI), as announced today. The investment underscores the nation's commitment to strengthening its position in the global semiconductor market, particularly as demand for EVs and digitalized industrial devices soars.

The collaboration between Toshiba and ROHM will focus on silicon carbide (SiC) power semiconductors, with new production facilities being constructed in Nomi City and Kunitomi Town. SiC semiconductors are highly sought after for their efficiency and performance in high-voltage applications, making them ideal for the burgeoning electric vehicle market.

This initiative is part of a broader response to the electrification of automobiles and the digitalization of society. By consolidating resources, Toshiba and ROHM aim to enhance Japan's competitive edge against top international firms. Currently, Japanese companies are among the global leaders in semiconductor technology but lag behind competitors like Infineon (OTC: IFNNY ) Technologies.

Market projections indicate that the global demand for power semiconductors could increase fivefold by 2035, driven largely by the EV industry and digitalized industrial devices. To prepare for this anticipated surge, Toshiba and ROHM are not only investing in new production sites but also ensuring that their supply chains are robust and reliable.

The partnership follows a significant restructuring within Toshiba, as a consortium led by Japan Industrial Partners Inc., which includes Rohm, acquired a controlling stake in the company. This acquisition resulted in Toshiba's delisting from the stock exchange.

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