By Kosaku Narioka
Toyota Motor-affiliated auto-parts supplier Denso has made a takeover proposal for Kyoto-based chip maker Rohm as semiconductors become crucial for vehicle electrification and self-driving technologies.
Rohm on Friday said it received a proposal from Denso to acquire shares of the company, including a potential takeover.
The news boosted Rohm's stock 18% to its daily limit level, bringing its shares to a two-and-a-half-year high and its market value to $7.95 billion. Denso shares fell 3.3%.
Rohm generates roughly half of its revenue from its automotive business.
Denso and Rohm in May 2025 agreed to establish a strategic partnership to improve the lineup of high-quality chips and said then that they would consider strengthening their capital relationship.
Denso said separately on Friday that it is in discussions with Rohm for various strategic options, including acquiring additional shares in the semiconductor maker. Denso held a stake of about 5.0% in Rohm as of the end of September.
Both Denso and Rohm said no decisions have been made.
Toyota is Denso's biggest shareholder, with a 22% stake as of September.
Denso and Rohm made the statements on Friday after Japanese business daily Nikkei reported that Denso had made a takeover bid for Rohm.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
03-06-26 0519ET
