120 Billion Yen Subsidy Allocated
"Enhancing Cost Competitiveness Through Joint Production"
Amid the announcement of joint production of power semiconductors by Japan's Toshiba and ROHM, the Japanese government has announced a subsidy of 120 billion yen (approximately 1.1 trillion KRW). Attention is focused on whether Toshiba, which is accelerating organizational restructuring ahead of delisting following a recent company sale, can find a turning point for recovery.
On the 8th, Nihon Keizai Shimbun (Nikkei) reported that Toshiba and ROHM have decided to share production of power semiconductors at their respective factories. The Ministry of Economy, Trade and Industry will subsidize 120 billion yen out of the total project cost of 380 billion yen (approximately 3.46 trillion KRW).
Nikkei stated, "The development of power semiconductors is essential to improve the energy-saving performance of electric vehicles (EVs)," adding, "Joint production is expected to enhance cost competitiveness."
Toshiba plans to produce these at its new factory under construction in Ishikawa Prefecture, while ROHM will produce them at its new factory in Miyazaki Prefecture, scheduled to start operations next year.
Nikkei also reported high expectations for synergy between the two companies. ROHM's strength lies in producing cutting-edge power semiconductors using silicon carbide, which offers excellent power efficiency, while Toshiba has a broad customer base in sectors such as railways and power, enabling potential positive effects not only in production but also in market development.
There is also analysis that the partnership could build countermeasures to compete against overseas companies. Currently, Toshiba holds a 3.7% global market share in power semiconductors, ranking 7th, while ROHM holds 3.2%, ranking 9th. Mitsubishi Electric ranks 4th worldwide.
Nikkei explained, "With multiple domestic brands competing, it is necessary for them to collaborate to counter overseas brands."
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