Toshiba and Rohm Semiconductor have restarted negotiations on power semiconductor cooperation, just one month after Toshiba terminated a controversial partnership with a Chinese silicon carbide wafer manufacturer. The reversal follows intervention by Japan's Ministry of Economy, Trade and Industry over technology security concerns.
The companies were previously considered a "golden partnership" in Japan's semiconductor strategy:
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Received ¥129.4 billion ($827 million) in government subsidies
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Toshiba focused on silicon-based devices
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Rohm specialized in silicon carbide (SiC) technology
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Toshiba had already stationed engineers at Rohm's wafer fab
The partnership nearly collapsed in August when Toshiba's electronic devices subsidiary announced a deal with a Chinese SiC wafer producer. Rohm executives expressed shock, fearing the arrangement could lead to transfer of advanced SiC technology to China.
Under government pressure, Toshiba:
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Terminated the Chinese partnership in September
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Issued a formal apology to Rohm
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Quickly resumed partnership talks
Toshiba's urgency stems from competitive threats:
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Denso, the automotive components giant, has increased its Rohm stake from <1% to nearly 5%
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Denso and Rohm are already collaborating on EV sensor semiconductors
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Denso-Fuji Electric alliance represents another government-backed power semiconductor group
Japan's power semiconductor industry is consolidating into two major camps while facing intense Chinese competition. Industry analyst Satoru Oyama warns that "Chinese-made power semiconductors could surpass Japanese products in both quality and quantity in the near future."
ICgoodFind :Japan's forced partnership restructuring reflects growing concerns about Chinese competition in critical semiconductor segments.
