Denso Corp. Proposes $8.2 Billion Acquisition of Rohm Co.
Major Japanese auto parts supplier Denso Corp. has submitted a takeover bid for semiconductor manufacturer Rohm Co. The bid is valued at approximately ¥1.3 trillion ($8.2 billion), as reported by the Nikkei.
The proposed acquisition aims to secure a stable supply of power semiconductors, critical components for electric vehicles that control electric current and voltage. Denso currently holds an equity stake of approximately 5% in Rohm, which is listed on the Tokyo Stock Exchange’s top-tier Prime section.
Both companies have confirmed that discussions are underway. “We have been considering various strategic options, including purchasing Rohm shares,” Denso stated, while Rohm acknowledged it “has received a proposal from Denso” regarding the acquisition of its shares.
The potential deal reflects the growing importance of semiconductors in the automotive industry, particularly as electric vehicle production accelerates globally. Power semiconductors are essential for battery management systems, power control modules, and driver assistance technologies. If completed, this transaction would represent one of the largest semiconductor acquisitions in Japanese corporate history and would significantly strengthen Toyota Motor’s supply chain security for critical EV components.
Industry analysts suggest the acquisition could accelerate innovation in silicon carbide chip technology used in EV inverters and create substantial revenue synergies potentially exceeding 300 billion yen annually by 2030.
Source: Nikkei