By Ko Terada and Yuiko Sakashita / Yomiuri Shimbun Staff Writers

After Denso Corp. offered to acquire Rohm Co., a major Japanese chipmaker, talks among Rohm, Toshiba Corp. and Mitsubishi Electric Corp. on merging their respective power semiconductor businesses began to see rapid progress, said Katsumi Azuma, Rohm's president and CEO.

The following is excerpted from Azuma's remarks to the media on Friday in Kyoto.

Question: How have (merger talks for the power chip businesses) progressed?

Katsumi Azuma: Our talks with Toshiba had been going on for a while, but they eventually stalled. During that time, discussions were also taking place between Toshiba and Mitsubishi Electric. Then, all of a sudden, Denso approached us in February, which prompted us to join hands with Toshiba and Mitsubishi Electric.

Until then, all three companies had similar visions but were heading in different directions, so we couldn't reach an agreement. (Denso's proposal) was mind-blowing to us, but it helped us make rapid progress in talks (with Toshiba and Mitsubishi Electric).

Question: Should (the merger) be regarded a counter to Denso's proposal?

Azuma: Talks had started before (Denso's proposal), but the proposal became a catalyst for the three of us to combine our efforts. Denso is our largest customer, but our original growth strategy was to merge (our power semiconductor business) with Toshiba's to increase scale, improve production efficiency and concentrate resources. This strategy hasn't changed.

Question: How do you view the current market environment?

Azuma: Power semiconductor production is driven by about two major firms in both Europe and the United States. On the other hand, Japan has many manufacturers, so I've been thinking about the need for the companies to unite. My own opinion is that we should establish two camps in Japan (with Rohm, Toshiba and Mitsubishi Electric in one camp and Denso and Fuji Electric Co. in the other).

Question: What do you think are the advantages and disadvantages of Denso's proposal?

Azuma: It would help us grow our automotive semiconductor operations, which account for about half of Rohm's sales. However, I'm concerned the other half would decline.

Question: How soon will the merger happen?

Azuma: As soon as possible. It's difficult to finish due diligence (for the merger) in a week, but we should have clear prospects by this summer.

Question: How do you think the merger talks will impact Denso's proposal?

Azuma: I believe it will have a tremendous effect. I can't guess how (Denso) will act. We must clearly tell (Denso) that (the alliance between Toshiba, Mitsubishi Electric and Rohm) is the best option for shareholders, employees and Japan's semiconductor industry.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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March 31, 2026 06:36 ET (10:36 GMT)

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