Denso Plans $8.2 Billion Acquisition of ROHM Semiconductor to Strengthen EV Power Semiconductor Capabilities

[M&A] Denso plans to acquire ROHM Semiconductor for 1.3 trillion yen (approximately $8.2 billion) to create a Japanese power semiconductor powerhouse.

Core Development: Japan's Automotive Chip Consolidation Enters a New M&A Phase

Denso, which already holds nearly 5% of ROHM’s shares, made a full takeover offer in February 2024. If the deal is completed, it will integrate both companies’ R&D capabilities in electric vehicle sensors and power semiconductors to better compete against Chinese rivals.

Key Metrics: 18% Stock Surge and First Annual Loss in 12 Years

Following the acquisition announcement, ROHM’s stock price jumped 18% in a single day—the largest one-day gain in 26 years. However, the company forecasts a net loss of 50 billion yen for fiscal year 2025, marking its first annual loss in 12 years, compared to a profit of 53.9 billion yen the previous year.

Strategic Rationale: Securing Chip Capacity to Support Electrification Transition

As vehicle software integration accelerates, demand for power semiconductors is surging. As a core supplier to the Toyota Group, Denso is using capital investments to secure stable chip supplies needed for future electric vehicles and data centers.