India, April 2 -- Japan's power semiconductor industry may be moving toward a major consolidation. According to Nikkei, sources say Mitsubishi Electric, Rohm, and Toshiba are preparing to enter talks to combine their power chip operations. If realized, the merged entity would command about 10% of the global market, potentially becoming the world's second-largest player.

As the report notes, Rohm has been in talks with Toshiba to integrate their power semiconductor operations, with Mitsubishi Electric now joining the discussions. Separately, Denso has submitted a bid to acquire Rohm. These three-way merger talks could influence the outcome of Denso's offer.

Scale push and complementary strengths behind consolidation

The consolidation ma...