Automotive parts giant Denso, closely linked with Toyota Motor, has officially submitted a proposal to acquire shares in Rohm Semiconductor, signaling its clear intent to pursue a takeover. This move appears to show Denso's intention to strengthen its position in the automotive semiconductor and power control sectors.
In an official statement on March 24, Denso said it has been exploring various strategic options, including acquiring equity stakes in Rohm, based on a basic agreement announced in May 2025 establishing a strategic partnership between the two companies in the semiconductor business. After careful evaluation, Denso formally presented to Rohm a proposal to acquire the company's shares.
Denso emphasized that semiconductors are one of its key development areas, especially within mobility systems. With rapid advancements in electrification, intelligence, and interconnected social systems, the added value of semiconductors is increasingly critical across industries. Consequently, Denso is accelerating its expansion into the industrial equipment and consumer electronics sectors.
Against this backdrop, Denso sees strengthening cooperation with partners as essential and thus proposed the acquisition of Rohm, which holds strong positions in the industrial equipment and consumer electronics markets.
Nikkei reported that while Denso had previously only been considering several options, including acquiring Rohm shares without any final decisions, it now plans to obtain full ownership through a takeover bid (TOB).
Currently, Denso possesses capabilities from development to production in motor control, power semiconductors for power conversion, and analog ICs for sensors. However, in logic IC fields such as AI chips and CPUs, Denso remains limited to only their partial development and design. Its business focus is mainly on automotive applications, with weaker customer links outside the vehicle sector.
Rohm ranks 12th globally among power semiconductor manufacturers with a 2.5% market share. Besides the automotive industry, Rohm serves extensive customers in the PC and server markets. If acquired by Denso, the company could promote a vertically integrated model spanning design, manufacturing, and vehicle integration, while expanding sales beyond automotive markets.
Rohm has established a special committee internally to discuss Denso's acquisition proposal. Previously, reports indicated Rohm was negotiating with Toshiba over integrating the power semiconductor businesses needed for electric vehicles (EV) and data center power control. In other words, Rohm is being presented with two strategic paths.
Power semiconductors have traditionally been a strength of Japanese firms, but rising Chinese competition has led to excess capacity across players. Japan's Ministry of Economy, Trade and Industry (METI) is currently urging industry players to restructure. Historically, Denso collaborated mainly with Fuji Electric, while Rohm allied with Toshiba. With Denso's acquisition proposal, these existing cooperative frameworks may undergo significant changes.
Article translated by Lily Hess and edited by Jack Wu
