Semiconductor Industry in Japan Rohm: Denso Considers Withdrawal—Semiconductor Trio Remains in the Race

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According to media reports, the automotive supplier Denso is withdrawing its bid for the semiconductor manufacturer Rohm; Denso itself denies that a decision has already been made. The alliance between Rohm, Toshiba and Mitsubishi Electric therefore remains a possibility in the power semiconductor sector.

Automotive supplier Denso's interest in semiconductor manufacturer Rohm could be waning. A takeover bid for the semiconductor manufacturer Rohm was made in February 2026, but Denso officials now want to withdraw it, as reported by the Japanese business newspaper Nikkei Asia on April 25, 2026. According to information from the Nikkei editorial team (via Archive.is), the two companies were unable to agree on the terms of a takeover.

Denso's press department responded on April 27, 2026 with a statement to the media reports that followed the Nikkei article. In it, Denso confirmed that the offer had not received support from Rohm and that various options were being considered, including withdrawal. However, a final decision has not yet been made.

Rohm confirmed on the same day that the company had not agreed to the takeover bid. Denso is currently considering various options on how to respond to the situation.

Synergies for Electromobility

Denso had originally aimed to acquire all shares in Rohm through a public tender offer. The automotive supplier, which already holds just under five percent of Rohm, develops and produces power semiconductors for motor controls and power converters as well as analog semiconductors for sensors. Rohm, on the other hand, specializes in particularly energy-efficient silicon carbide power semiconductors. Through the acquisition, Denso would have sought synergies in technologies that are critical for electric vehicles and other end products.

Upon receipt, Rohm reviewed the offer through a special committee. At the same time, Rohm, Toshiba and Mitsubishi Electric announced talks at the end of March 2026 about a possible merger of their power semiconductor businesses. These negotiations were conducted independently of the Denso offer and Rohm is now likely to pursue this option.

Competition for Infineon Still Possible

According to Nikkei, Rohm apparently came to the conclusion that synergies would be difficult to realize if the company became a Denso subsidiary. Under the new structure, there would have been a shift towards automotive semiconductors and potential changes in business relationships with automotive suppliers competing with Denso.

Power semiconductors are indispensable for electric vehicles, household appliances, trains and electricity infrastructure. The market is expected to grow significantly in the coming years. While European and American companies dominate the top positions in global market share, Chinese suppliers are intensifying their low-price offensive. Japanese companies, which once held a leading position, are under pressure.

A potential merger between Rohm, Toshiba and Mitsubishi Electric could create one of the world's largest suppliers of power semiconductors and thus enter into direct competition with Infineon. For European suppliers such as Infineon, STMicroelectronics or Onsemi, this could further increase competitive pressure in the power electronics sector. (sb)

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