Georgia Institute of Technology
Japanese automotive supplier Denso is considering acquiring chipmaker Rohm for more than 7 billion euros.
The global industry of semiconductors may face a new reconfiguration strategic following a potential multi-billion euro deal in Japan.
The Japanese automotive supplier Denso is evaluating the acquisition of the chipmaker Rohm for more than 7 billion eurosin a move that could change the competitive balance in the sector and increase pressure about companies European as Infineon e Bosch.
In Denso, Toyota’s main supplier and the second largest automotive components company in the world — only behind the German Bosch — intends to reinforce its capacity to produce semiconductors, considered strategic components for modern vehicles, especially with the advancement of electrification and assisted driving. Currently, only a few major automotive suppliers produce their own chips; many competitors rely on external purchases.
The eventual acquisition of Rohm, a leading Japanese semiconductor manufacturer, would allow Denso to vertically integrate part of the production chain and reduce dependence on external suppliers.
This step would also implications for the European industry. Infineon, based in Munich, is currently the world’s largest producer of semiconductors for automobiles and counts Denso as one of its relevant customers. Around half of the German company’s revenue comes precisely from the automotive sector.
The relationship between the two companies is not limited to commercial activity. Denso also has a small stake in Infineon, which demonstrates the interdependence that exists in the global automotive chip ecosystem. In the Japanese market, Infineon occupies the second position among manufacturers of this type of semiconductors, with around 13% market share.
The news of the possible deal had immediate impact on financial markets. Rohm shares soared almost 20% in a single stock market session, the biggest increase in around 26 years. Since the beginning of the year, the Japanese company’s bonds have already appreciated by approximately 50%, reflecting investors’ expectations regarding the potential agreement.
This movement occurs at a time of intense global competition in the semiconductor sector, considered essential for emerging technologies and the automotive industry, reinforces .
In recent years, governments and companies have invested large sums to strengthen production capacity and reduce external dependencies.
If the acquisition goes ahead, the combination between Denso and Rohm could create a new industrial hub in Japan with greater technological autonomy and production capacity. For European competitors, especially Infineon and Bosch, this could mean the emergence of a more integrated and potentially more competitive rival in an increasingly strategic market for the future of mobility.
