Japan’s Power-Chip Makers Face a Fragmentation Problem as China Ramps Up

A major takeaway from fresh reporting is that a headline alliance between Toshiba and ROHM meant to pool investment in SiC and silicon power devices—has struggled to deliver rapid, tangible consolidation, highlighting coordination frictions across Japan’s legacy power-chip ecosystem. The partnership is real and sizable (with a combined capex plan and a large government subsidy), but the broader landscape still features multiple mid-sized champions rather than one or two national platforms able to match Chinese rivals’ speed and volume.

Tokyo has tried to narrow the gap with targeted subsidies for domestic power-chip capacity, including a package supporting ROHM and Toshiba’s manufacturing collaboration. Policymakers see power devices as strategic critical to EV drivetrains, industrial drives and energy infrastructure and are channeling funds accordingly. Even so, financing alone does not resolve coordination and time-to-scale challenges across fabs and product lines, which is why the sector’s fragmentation remains a competitive headwind.

Across the water, China’s suppliers are moving fast. TechInsights tracks rapid share gains by firms such as BYD Semiconductor, CR Micro, StarPower and Silan in automotive power devices, aided by policy tailwinds that push automakers to source more chips locally. That dynamic is strongest in legacy and mid-range nodes where power electronics live, and increasingly in SiC as Chinese vendors invest up the stack. For Japanese producers, the implication is clear: deeper, faster integration, whether through alliances, shared platforms, or selective M&A will matter as much as capex if they want to defend premium pricing and long-term supply positions with global OEMs.