July 17, 2026 / SemiMedia / — Mitsubishi Electric aims to reach an agreement with Toshiba and Rohm by September on a plan to combine their semiconductor operations, Mitsubishi Electric CEO Kei Uruma said.

The companies are discussing detailed terms for a proposed joint venture that would integrate sales, manufacturing and research and development. Uruma said the parties have reached a preliminary understanding that Mitsubishi Electric would take a leading role in the combined company, although the ownership and management structure has not been finalized.

Mitsubishi Electric, Rohm, Toshiba, Japan Industrial Partners and related shareholders signed a memorandum of understanding on March 27 to begin formal integration discussions. The proposed transaction covers the semiconductor business of Toshiba Electronic Devices & Storage, Rohm’s semiconductor operations and Mitsubishi Electric’s power device business.

The companies are seeking greater manufacturing scale, broader sales coverage and more efficient use of engineering resources as they compete with global power semiconductor suppliers such as Infineon Technologies. Omdia data indicates that Infineon controls close to one-fifth of the global power semiconductor market, while Mitsubishi Electric, Rohm and Toshiba each hold shares of less than 5%.

Power semiconductors control and convert electricity in electric vehicles, data center power systems, industrial robots, inverters, railway equipment and home appliances. Demand for SiC MOSFETs, IGBTs and other power devices is increasing as vehicle electrification, AI infrastructure investment and industrial energy-efficiency requirements expand.

One of the main obstacles is determining which products should be transferred to the new entity. Toshiba and Rohm want the venture to include a broader range of analog semiconductors, including converters and drivers, so they can continue supporting existing customers. Mitsubishi Electric prefers a structure focused more narrowly on power devices.

Senior executives from the three companies have held direct meetings after working-level discussions made limited progress. Uruma said Japan’s fragmented supplier base has resulted in duplicated investment and development work, while integration could streamline research and increase the value of the companies’ products.

Rohm also received an acquisition proposal from automotive supplier Denso in March. Denso later withdrew the offer after failing to secure support from Rohm’s board, leaving the three-way integration with Toshiba and Mitsubishi Electric as the main consolidation plan under consideration.

The September target refers to an announcement of the proposed venture rather than completion of the transaction. The companies have not finalized the product scope, ownership ratios, factory arrangements or other transaction terms, and any agreement could remain subject to competition and regulatory approvals.