Toshiba, Rohm to Jointly Invest $2.7 Billion in Power Chip Production

Toshiba and Rohm announced on Friday their joint investment of ¥388.3 billion ($2.7 billion) towards the production of power chips. It marks their first collaboration since Rohm's participation in Toshiba's $14 billion buyout.

This partnership aligns with the industry ministry's objectives of consolidating the fragmented power chip sector, ensuring its competitiveness against industry titan Infineon Technologies, as per Japan Times.

Government Support and Market Insights

According to the Inquirer, the ministry further revealed plans to subsidize up to ¥129.4 billion, approximately one-third of the total investment, to bolster the domestic power chip industry's competitive edge.

With power chips playing a crucial role in controlling electric power for various applications, such as automotive, electronics, and industrial equipment, the ministry predicts the global power chip market to reach ¥5 trillion by 2030.

Advancements in Silicon Carbide Power Chips

Under this ambitious plan, Rohm will contribute ¥289.2 billion towards constructing a new plant in Kunitomi, Miyazaki Prefecture, dedicated to producing silicon carbide power chips. These chips have gained popularity among electric vehicle manufacturers due to their ability to handle high voltages and deliver improved efficiency.

Simultaneously, Toshiba will invest ¥99.1 billion in a state-of-the-art 300-millimeter fabrication plant in Nomi, Ishikawa Prefecture, focused on manufacturing silicon power chips.

Toshiba's investment in cutting-edge fabrication plants is part of its broader strategy to increase power chip production. With an announced expenditure of ¥125 billion, Toshiba aims to more than double its current production capacity. Notably, chips produced at these plants will be sold under each company's respective brands.

The successful collaboration of Toshiba and Rohm comes alongside another significant investment by Rohm. The company recently decided to invest ¥300 billion to join a group led by private equity firm Japan Industrial Partners in taking Toshiba private. However, both Toshiba and Rohm clarified that this collaboration had been under consideration for some time and was not directly linked to the buyout.

Japanese power chip manufacturers, including Toshiba, Rohm, Mitsubishi Electric, and Fuji Electric, hold a strong global presence. With this joint investment, they are poised to strengthen their foothold in the competitive power chip industry while propelling Japan's technological advancements to new heights.

Photo: Toshiba Newsroom