Toshiba, Rohm to invest $2.7 billion to jointly produce power chips

FILE PHOTO: The logo of Toshiba Corporation is displayed at the company's building in Kawasaki, Japan, April 5, 2023. REUTERS/Androniki Christodoulou/File Photo

TOKYO (Reuters) - Toshiba and Rohm said on Friday they would invest 388.3 billion yen ($2.7 billion) to jointly produce power chips, the first collaboration since Rohm's participation in a $14 billion buyout of Toshiba.

The latest partnership is what the Japanese industry ministry has hoped for out of concerns that the country's power chip industry is too fragmented to catch up with industry giant Infineon Technologies AG.