Japan's Rohm to Invest 2.8 Trillion Won in Toshiba Acquisition... Semiconductor Alliances and Mergers

ROHM, Expected Maximum Investment Amount
Collaboration on Semiconductor and Raw Material Procurement

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] As the Japanese industrial consortium Japan Industrial Partners (JIP) is pushing forward with the acquisition of Toshiba, Japanese semiconductor company ROHM has decided to invest 300 billion yen (approximately 2.843 trillion KRW), Nihon Keizai reported on the 16th. If the JIP consortium's acquisition is successful, Toshiba is expected to form a semiconductor business partnership with ROHM.

According to the report, this acquisition is expected to be structured with financial firm ORIX raising 300 billion yen through equity and acquisition financing (M&A loans), power company Chubu Electric Power investing 100 billion yen, and the JIP consortium contributing 100 billion yen. ROHM did not specify the exact investment amount, but Nihon Keizai predicted that they could invest up to 300 billion yen.

Japanese automobile manufacturer Suzuki is also known to be investing several tens of billions of yen. The total acquisition amount is 2.2 trillion yen, with dozens of Japanese companies contributing 1 trillion yen and the remainder being financed through loans from financial institutions.

The JIP consortium is an alliance composed of local companies such as ORIX and Chubu Electric Power, as well as global investment firms including Baring Private Equity Asia and CVC Capital Partners. When Toshiba initiated a public sale process following a dispute with a foreign activist fund in March, the consortium requested participation from more than ten Japanese companies. This was to prevent Toshiba from falling into foreign capital hands, as happened with Sharp, an electronics manufacturer acquired by Taiwan's Foxconn.

Once this acquisition process is completed, Toshiba is expected to collaborate with ROHM in semiconductor production and raw material procurement. ROHM is a semiconductor electronic components company specializing in large-scale integrated circuits (LSI) used in autonomous vehicles. Currently, ROHM and Toshiba are focusing their investments on power semiconductors used in electric vehicles.

Nihon Keizai stated, "ROHM's investment amount is the largest among the companies participating in the acquisition," adding, "If the acquisition is successful, ROHM and Toshiba will form a partnership in the semiconductor infrastructure business and work together to enhance corporate value."

This content was produced with the assistance of AI translation services.