Denso proposes to buy Rohm in deal that could reach $8.3 bln, Nikkei says (updated)

Rohm Co

06/03/2026 03:28

Rohm a significant player in power chips used in EVs

Companies agreed to form strategic partnership in May

Rohm shares end day up by daily limit of 18%; Denso falls 3.4%

Adds details throughout

TOKYO, March 6 (Reuters) - Toyota supplier Denso 6902.T has made a bid for chipmaker Rohm 6963.T, a potential $8.3 billion deal that will expand the auto parts giant's hold on power management chips used in electric vehicles and data centres.

Denso, a pillar of the Toyota 7203.T group and one of the world's largest makers of automotive components, has approached the Kyoto-based chipmaker about acquiring its shares, Rohm said in a statement on Friday, adding that nothing had been decided.

Shares of Rohm ended the day flooded with buy orders, up by their daily limit of 18%. Denso shares were down 3.4%.

STRATEGIC PARTNERSHIP

In May, the two companies agreed to form a strategic partnership in semiconductors, with a focus on integrated circuits used in EVs. Following that, they have discussed different strategic options, including a share acquisition, Denso said in a statement.

It, too, said that nothing had been decided. Denso owns around 4.8% of Rohm, according to LSEG data.

Rohm is a significant player in power chips, which are used to efficiently control electric power in cars, electronic devices and industrial equipment.

It is an area where Japan still holds strength despite its shrinking presence in the global chip industry. Still, the Japanese industry remains fragmented and Japan's powerful trade and economy ministry has long said that consolidation was needed in the space.

CHIP SUPPLY

Automakers have become increasingly focused on securing adequate supply of semiconductors since the painful supply-chain breakdowns erupted in the aftermath of the COVID-19 pandemic.

The recent crisis at Dutch chipmaker Nexperia has highlighted the importance of power chips, after shortages forced production cuts at Honda and Nissan and drove Germany's Bosch to curtail working hours.

The news of the potential deal was first reported by the Nikkei business daily, which said the transaction could reach as much as around 1.3 trillion yen ($8.3 billion).

     ($1 = 157.4700 yen)

 (Reporting by Kiyoshi Takenaka and David Dolan; Editing by Chang-Ran Kim, Kevin Buckland and Jan Harvey)