ISTANBUL

Japan’s Toshiba said Friday it is in talks with Mitsubishi Electric and ROHM to combine parts of their semiconductor operations, in a move aimed at strengthening competitiveness in the global power chip market.

The companies signed a memorandum of understanding to explore integrating Toshiba’s subsidiary Toshiba Electronic Devices & Storage Corporation (TDSC), ROHM’s semiconductor business and Mitsubishi Electric’s power device unit, according to a statement.

The discussions come as Japanese chipmakers face intensifying competition from overseas, particularly in the fast-growing market for power semiconductors used in electric vehicles, renewable energy and industrial systems.

The proposed integration would create the world’s second-largest power semiconductor alliance, according to Japanese news agency Jiji Press.

Toshiba is a major Japanese industrial conglomerate, ROHM is a Kyoto-based chipmaker specializing in power semiconductors and Mitsubishi Electric is a leading manufacturer of industrial and electronic equipment.

Toshiba said a potential integration, with Mitsubishi Electric joining the framework, could create a business with the scale and technological capabilities needed to compete globally.

The company added that the combined entity could serve a broader customer base across multiple industries while strengthening Japan’s semiconductor sector.

TDSC and ROHM had already been exploring cooperation in power devices. In 2023, they submitted an investment and production plan to the Japanese government, which was approved under a program aimed at securing stable domestic semiconductor supply.

Toshiba said the agreement marks the start of discussions and that no decisions have yet been made on the structure or terms of a potential deal.