Toshiba Corp’s strategic alliance with Rohm Co. is set to make a significant impact in the semiconductor industry. The two companies are pooling in a substantial investment of $640M to expand semiconductor production for EVs and electric grids, with key expansions planned in Japan and Thailand.
Toshiba Corp, in a major commitment to the power semiconductor sector, is partnering with semiconductor manufacturer Rohm Co. to invest a staggering 100 billion yen ($636 million) over three years through March 2027. The aim is to significantly expand its power semiconductor production, with a focus on chips widely used for power control in electric vehicles and industrial devices.
This includes the construction of a state-of-the-art 300-millimetre fabrication plant in central Japan for power management chips, which play a crucial role in efficiently controlling electric power in cars, electronic devices, and industrial equipment.
The company has also made strategic expansions in Japan and Thailand, including the opening of a new production line at an Ishikawa Prefecture manufacturing subsidiary, the expansion of a Hyogo Prefecture semiconductor plant near Osaka, and the upgrade of a processing facility in Thailand’s PrachinBuri Province.
Toshiba Corp announced that its power chip business expansion is part of a 400 billion yen capital investment plan, with about 20 billion yen earmarked for upgrading plants in Kanagawa Prefecture and India.
The company will invest 20 billion yen by March 2027 in a factory in Hyderabad, India, and a plant in Kawasaki, Tokyo, to increase the production of transformers, switchgear, and other equipment. Transformer demand for data centres grows as generative AI spreads.
India’s electricity demand is expected to exceed supply until around 2030, and rising demand for renewable energy requires a power transmission and distribution network connecting producers and consumers. India has also become a base for exporting products to Europe, a leading market for renewables.
Toshiba is not just focusing on semiconductor production, but also on diversifying its revenue streams. The company is looking to increase its earnings from services for electric companies, such as the collection and analysis of operational data from power plants. This move is aimed at boosting efficiency and detecting problems, showcasing Toshiba’s commitment to providing comprehensive solutions in the energy sector.
The company aims to raise operating profit for the year ending March 2027 to 380 billion yen, almost ten times the level of the year ended March 2024.
