Japanese conglomerate Toshiba Corp. and electric parts company Rohm Co. will collaborate in the power semiconductor business, sources familiar with the matter said Thursday.

The two companies are spending a combined 380 billion yen ($2.6 billion) to expand their production of power semiconductors, and Japan's Ministry of Economy, Trade and Industry is expected to shoulder up to about 130 billion yen of the cost, they said.

Power semiconductors are capable of handling high voltages and large electric currents and are commonly used in electric vehicles.

The collaboration by Toshiba and Rohm will involve new plants being built in Ishikawa and Miyazaki prefectures, respectively, according to the sources.

Toshiba is set to be delisted this month after a consortium led by Japan Industrial Partners Inc. acquired a 78.65 percent stake in Toshiba. Rohm is part of the consortium.

Global demand for power semiconductors is expected to grow and Rohm and Toshiba are among the major suppliers.

According to research firm Fuji Keizai Co., the global market for power semiconductors is forecast to grow fivefold from approximately 2.7 trillion yen in 2022 to about 13.4 trillion yen by 2035.

==Kyodo

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