Denso Proposes Acquiring Chipmaker Rohm

Nagoya, March 6 (Jiji Press)--Major auto parts supplier Denso Corp. has proposed acquiring major chipmaker Rohm Co., it was learned Friday.

With the envisaged acquisition, Denso aims to stably procure power semiconductors, which control electric current and voltage, in view of the expanding market for electric vehicles.

If Denso, which already has invested in Rohm, buys all remaining shares in the company, the cost would likely far exceed 1 trillion yen. As of the end of September last year, Denso held an equity stake of some 5 pct in Rohm, which is listed on the Tokyo Stock Exchange's top-tier Prime section.

On power semiconductors, Rohm has collaborated with Toshiba Corp., while Denso has cooperated with Fuji Electric Co. Mitsubishi Electric Corp. has also shown interest in industry realignment.

"We have been considering various strategic options, including purchasing Rohm shares," Denso, also listed on the TSE Prime section, said in a statement Friday.

[Copyright The Jiji Press, Ltd.]