Rohm, Toshiba, Mitsubishi talk about power semi merger

Rohm, Toshiba and Mitsubishi Electric are to start talks ​to integrate their power semiconductor businesses, reports the Nikkei

The talks come shortly after Denso made an $8.3 billion bid to buy Rohm.

Last week Rohm said it had set up a ​committee of ⁠outside directors and others to review Denso’s proposal, alongside other options to boost its corporate value.

A Rohm/Toshiba/Mitsubishi grouping would have a 10% world market share, making it the No,2 power semi business after Infineon which has 17% share.

The power semiconductor market is coming under intense pressure from China whose rapid increase in mature node  fab capacity and subsidised producers are pushing down prices in non-leading edge, mid-range parts.

Although Chinese companies’ power semiconductor market share is currently estimated at only 5-10% it has some of the fastest-growing companies of which the leaders, all of whom are in the top  20 companies for power semi revenues, are CR Micro, Silan, BYD Semiconductor and  CRRC. Silan is estimated to have had power semi revenues of $1.57 billion last year.

Foreign  companies still have an edge in SiC and GaN power semis.