Toshiba and Rohm sign $2.7 billion investment to make power chips for electric vehicle and more

Two of the largest electronics giants – Toshiba and Rohm announced on Friday a large $2.7 joint investment for the production of power chips.

The latest efforts from both companies are supported by the Japanese industry ministry which said to subsidize this investment by 129.4 billion yuan.

Power chips are used to control power in electric vehicles such as cars, electronic devices, and industry equipment. With that vast use case, the Japanese ministry is expecting the power chips industry to exceed 5 trillion yen by 2030.

This collective investment deal includes 289.2 billion yen from Rohm for its new plant in Miyazaki Prefecture on the southern island of Kyushu.

The plant will focus on producing silicon carbide power chips used in electric cars for their efficient power handling.

On the other hand, Toshiba will land 99.1 billion yen for a 300mm fabrication line in Sihikawa, central Japan to produce silicon power chips.

The latest announcement will fuel up the country’s strategy to expand power chip production.

(source – JapanToday)