Denso Corporation, the main component-manufacturing subsidiary of Japanese automaker Toyota Motor, is considering withdrawing its bid to acquire local semiconductor manufacturer Rohm Company, according to local reports, after the two companies failed to agree on the terms of the acquisition.
Denso currently has a stake of almost 5% in Rohm, which manufactures high-energy-efficiency silicon carbide power management semiconductors. Last year, the two companies announced a strategic partnership in the area of integrated circuits for electric vehicles (EVs).
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Denso is reported to have made an offer for Rohm earlier this year valuing the company at JPY 1.3 trillion (US$ 8.2 billion), in a move designed to strengthen its control of the local market for automotive semiconductors.
The offer to acquire Rohm is reported to have fallen short of the chipmaker’s own valuation of the company, with reports now suggesting that Denso is preparing to walk away from the deal. A Denso spokesperson said the company has not made a statement on the subject, and that a decision has not been made.
In response to media reports, Rohm said in a statement: “It is true that, at present, the company has not expressed its support for the proposal. However, Denso is currently considering how to respond to this matter.” The company had previously stated that it was planning to hold talks with Toshiba and Mitsubishi Electric on integrating their power semiconductor businesses.
