Semiconductors: Japan to invest in a Toshiba and Rohm project
Japanese companies Toshiba and Rohm announced on Friday a partnership to expand their semiconductor production capabilities, involving investments of 2.5 billion euros with financial assistance from the Japanese government, aiming to strengthen its autonomy in this strategic field.
The two groups will collaborate on the production of power semiconductors, which reduce energy consumption, "complementing their production capacities," they said in a statement.
This plan "has been approved and will be supported" by the Japanese Ministry of Economy, Trade, and Industry (Meti) "as part of measures to ensure a stable and secure supply of semiconductors in Japan," the statement added.
The conglomerate Toshiba, acquired this year by a consortium of Japanese companies led by electronic components manufacturer Rohm, will invest approximately 25%, and Rohm 75%, of a total planned amount of 388.3 billion yen (2.5 billion euros).
The Japanese government will subsidize this project up to a maximum amount of 129.4 billion yen (840 million euros), one-third of the total investment, the statement specified.
Rohm, known for its expertise in silicon carbide (SiC) semiconductors, a relatively new type of electronic component offering better energy efficiency and used particularly in electric vehicles and industrial equipment, will leverage Toshiba's capabilities in conventional silicon chips.
"The SiC business is one of Rohm's priority projects, with continuous and aggressive investments planned to increase its production capacity and meet the strong demand," the statement explained.
Following these announcements, Rohm's stock surged by 6.25% on the Tokyo Stock Exchange on Friday.
Like other industrialized countries, Japan is heavily investing to increase its domestic production and reduce dependence on semiconductors. Tensions between China and Taiwan, one of the world's largest producers of electronic chips through the TSMC group, have heightened concerns about the security of semiconductor supply.
Last month, the Japanese government announced it would allocate 2 trillion yen (12.9 billion euros) from its additional budget for 2023/24 to the development of domestic semiconductor and artificial intelligence systems production.
Tokyo is generously subsidizing the construction of a TSMC factory on the southern Japanese island of Kyushu and has also, with the support of major Japanese private companies, established a new semiconductor manufacturer, Rapidus, which has already partnered with the American IBM.
