Japanese auto parts supplier Denso has submitted a takeover bid for Kyoto-based electronics company Rohm worth up to Y1.3tn ($8.2bn).
According to a report by Nikkei Asia, the proposal was made in February or earlier and is currently being assessed by Rohm.
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The company has formed a special committee to review the offer and determine whether to proceed with the potential transaction.
If the deal goes ahead, the combined entity could emerge as a significant domestic player in Japan’s power semiconductor sector.
Automakers have become increasingly focused on securing stable semiconductor supplies after the global chip shortages experienced during the coronavirus pandemic.
Production disruptions associated with the Dutch government’s takeover of Nexperia have also contributed to concerns over supply reliability.
Last December, MediaTek partnered with Denso to jointly develop a custom automotive system-on-chip (SoC) designed for advanced driver-assistance systems (ADAS) and cockpit applications.
MediaTek said the jointly developed SoC will combine Denso’s vehicle integration and functional safety expertise with semiconductor technologies from its Dimensity AX platform.
Denso is also expanding its infrastructure, announcing last month plans to invest $69m in constructing a new logistics centre in Lebanon, Tennessee.
The 280,000ft2 facility is scheduled to begin construction in summer 2026 and is expected to open in spring 2027.
The new centre will replace the company’s current operation in Wilson County.
The project is expected to retain around 100 jobs and support Denso’s operations and customer service across North America.
Just Auto has reached out to Toyota-backed Denso for comment on the report.
