The potential acquisition highlights the growing importance of semiconductor technology in the global automotive industry, particularly as carmakers accelerate the transition toward electric vehicles, advanced driver-assistance systems, and connected mobility solutions.

Denso, one of the world’s largest automotive suppliers, already produces a wide range of electronic components used in vehicles. By acquiring Rohm, the company could strengthen its ability to secure a stable supply of chips components that have become critical to modern vehicle manufacturing.

Rohm is known for developing power semiconductors and electronic components used in automotive systems, consumer electronics, and industrial equipment. Analysts say integrating Rohm’s semiconductor expertise with Denso’s automotive technology could help Toyota and its partners maintain a competitive edge in the rapidly evolving EV and smart-vehicle market.

If completed, the deal would mark one of the largest semiconductor acquisitions in Japan and further underline how automakers are increasingly investing directly in chip production to avoid supply disruptions like those experienced during the global semiconductor shortage in recent years.