Chart: How Rohm, Toshiba, Mitsubishi Tie-Up Could Reshape the Power Sector

ROHM Semiconductor, Mitsubishi Electric, and Toshiba are discussing a potential tie-up of their power semiconductor businesses, a move that could significantly shake up the global market for power devices.

The companies revealed last month that they had signed a memorandum of understanding (MOU) to start formal discussions around a potential merger. While the negotiations remain preliminary, a combined company would rank as the world’s second-largest supplier of power devices (see the chart above). According to Omdia, the three firms together account for about 11% of the global market compared to Infineon’s current 24% share.

A main goal of the merger is scale. By consolidating ROHM and Toshiba’s power semiconductor units with Mistubishi’s power device division, the three firms aim to expand production capacity and reduce costs through economies of scale. They have also touted the potential of pooling research and development resources.

The companies said this will be key to keeping up with demand for analog and power devices in fast-growing areas such as electric vehicles, AI data centers, renewable energy, and industrial automation.

All three companies have vast portfolios of power devices, supplemented by microcontrollers (MCUs), gate drivers, op amps, and other analog ICs that surround them in power supplies. For instance, ROHM and Mitsubishi both sell silicon-carbide (SiC) MOSFETs and power diodes that are crucial for EV traction inverters and fast-charging systems, as well as the 800-V converters needed by NVIDIA’s reference rack designs.

Each company brings complementary assets to the potential merger. ROHM develops a broad portfolio spanning silicon, SiC, and GaN power devices in addition to MCUs, power-management ICs, motor-control ICs, and other components such as LED drivers.

While Toshiba has a strong position in some of the same analog and power segments as ROHM, Mitsubishi adds another dimension to the deal with deep expertise in power modules and industrial systems integration.