TOKYO: Japan’s industry ministry said Friday that it will provide up to 129.4 billion yen in subsidies to support plans by domestic chipmakers Toshiba Corp. and Rohm Co. to jointly manufacture power semiconductors.

The move is aimed at helping boost the Japanese semiconductor industry’s competiveness and ensure stable chip supply.

Toshiba and Rohm aim to achieve efficient output by dividing roles between their plants. Under the plan, the two companies will spend around 388.3 billion yen together.

Specifically, Toshiba is currently building a new factory in Nomi, Ishikawa Prefecture, central Japan, to make silicon power chips and plans to start supplying them in March 2025.

Rohm is set to begin full-fledged production of next-generation silicon carbide power chips at a new plant in Kunitomi in the southwestern prefecture of Miyazaki in April 2026.

Power chips are used in electric vehicles, industrial equipment and home appliances to control electric currents and voltages. Japanese makers are lagging far behind market leader Infineon Technologies AG of Germany.

Japanese industry minister NISHIMURA Yasutoshi told a press conference that the Toshiba-Rohm tie-up will “bring together technology and talent and mark the first step toward creating a world-leading chipmaker.”

Toshiba and Rohm said they will collaborate toward “enhancing both companies’ international competiveness.” Rohm is a member of a consortium led by investment fund Japan Industrial Partners Inc. set to acquire Toshiba.

JIJI Press