Toshiba Corp. and electric parts company Rohm Co. said Friday they will collaborate in the power semiconductor business, planning to spend a combined 388.3 billion yen ($2.7 billion) to expand their production with one-third of the outlay covered by the industry ministry.

While Japanese firms have about a 20 percent share in the global power semiconductor market, the country's market only has relatively small players that lag behind industry giant Infineon Technologies of Germany, according to the ministry.

Under the project, Toshiba and Rohm will boost production utilizing their chip factories in Ishikawa and Miyazaki prefectures, respectively.

The two companies will focus on manufacturing the types of power semiconductors where they have competitive advantage and supply them to each other for sale under their own brands.

"We are hoping this will be the first step toward creating a world-leading chipmaker," Economy, Trade and Industry Minister Yasutoshi Nishimura told reporters. His ministry said that up to 129.4 billion yen of the total cost will be subsidized by the government.

Toshiba will produce power semiconductors made of silicon, which is used in a wide range of products from cars to industrial devices, at a new plant under construction in Ishikawa, with a plan to begin sales from March 2025.

Rohm will make silicon carbide chips, which have higher power efficiency, at its new plant in Miyazaki and start supplying them from April 2026.

The collaboration will eliminate inefficiency in production while also increasing the global competitiveness of domestic chips, the two companies said.

Demand for power semiconductors, capable of handling high voltages and large electric currents, is expected to rise as they are being increasingly used in electric vehicles and industrial devices.

The move comes as Toshiba is set to be delisted this month after a consortium led by Japan Industrial Partners Inc. acquired a majority stake in the conglomerate. Rohm is part of the consortium.

==Kyodo

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