Rohm, Toshiba, Mitsubishi Electric to Begin Power Chip Integration Talks

Tokyo/Kyoto, March 27 (Jiji Press)--Rohm Co., Toshiba Corp. and Mitsubishi Electric Corp. have agreed in principle to start discussions on integrating their power semiconductor operations, the three Japanese firms said Friday.

They intend to survive intensifying global competition by unifying their technologies and production capabilities. The move would create the world's second-largest alliance for power chips, used to control electric currents and voltage, after German chipmaker Infineon Technologies.

The three companies are expected to set up a new entity by combining their power semiconductor divisions, with details, such as the timing of the establishment and their investment ratios, to be discussed from now.

The unification "is expected to contribute significantly to the development of a wide range of customer businesses and industrial sectors, as well as maximize the corporate value of the integrated entity," they said in a statement.

Rohm aims to create new products through joint development with Toshiba and Mitsubishi Electric, and reduce costs through plant consolidation.

[Copyright The Jiji Press, Ltd.]