Rohm, Toshiba, and Mitsubishi Discuss Power Chip Merger After Denso Bid

Toshiba Corporation, ROHM Co., Ltd., and Mitsubishi Electric Corporation have entered into discussions to integrate their power semiconductor operations to better compete in the global market. On March 27, 2026, Toshiba announced the signing of a memorandum of understanding (MoU) to begin these talks, which also include Japan Industrial Partners, Inc. (JIP) and TBJ Holdings Corporation (TBJH).

The proposed integration involves the semiconductor business of Toshiba’s subsidiary, Toshiba Electronic Devices & Storage Corporation (TDSC), the semiconductor business of ROHM, and the power device business of Mitsubishi Electric. The move is designed to establish a business scale and technological foundation capable of competing internationally and expanding customer bases across various industrial sectors.

Strategic Drivers and Market Pressures

The drive toward consolidation follows an environment of intense international competition within the semiconductor industry. The realignment is further complicated by a separate takeover bid from Denso, a Toyota-affiliated auto parts supplier, which has submitted an offer to acquire ROHM.

Industry reports indicate that the three-way merger discussions involving Mitsubishi Electric, ROHM, and Toshiba could influence the eventual outcome of Denso’s acquisition attempt. While ROHM and Toshiba had previously been examining collaboration in power devices, the addition of Mitsubishi Electric to the discussions is intended to maximize the corporate value of the resulting entity.

Foundations of the Collaboration

The current integration talks build upon existing cooperation between TDSC, and ROHM. In December 2023, these two companies jointly submitted a plan to Japan’s Ministry of Economy, Trade and Industry regarding investment and collaboration in the volume production of power devices.

The Japanese government recognized this 2023 plan as a measure under its program to ensure a secure and stable supply of semiconductors. This governmental recognition provided a framework for the companies to advance their collaborative manufacturing initiatives prior to the broader integration talks involving Mitsubishi Electric.

the proposed integration, with the participation of Mitsubishi Electric, would realize a business scale and technological foundation capable of competing in the global market, thereby significantly contributing to the development of a wide range of customer bases and industrial sectors as part of Japan’s semiconductor industry, and maximizing the corporate value of the integrated entity

Toshiba Corporation Official Announcement, March 27, 2026

Corporate Interdependencies

The landscape of the Japanese power chip sector is currently characterized by overlapping strategic interests. In addition to the merger talks, ROHM and Denso agreed in May to form a strategic partnership focusing on integrated circuits used in electric vehicles.

The CEO of ROHM has stated that the company is making progress on the power chip merger following the takeover bid. The involvement of JIP and TBJH in the MoU suggests a complex corporate structure for the potential integrated entity, as these firms are already linked to the ownership and management of the involved semiconductor assets.

The outcome of these discussions will determine whether the three companies merge their power device operations into a single entity or maintain separate structures while pursuing the collaborative manufacturing goals established with the Japanese government.