Home/Rankings/Rohm Co.

Rohm Co.

6963.TLOWScore: 14.1

SiC Power Devices · Weight: 2%· Data as of 2026-06-04

Also in:EV
¥3,487+2.62%
6-month daily

Investment Thesis

Anchor participant in Japan's government-backed power semiconductor consolidation (Rohm + Toshiba TDSC + Mitsubishi Electric MoU signed March 27, 2026). FY2025 kitchen-sink SiC impairment of ¥158.4B clears the balance sheet — depreciation falls sharply from FY2026, driving OP ¥30B (+176%) guided recovery. Gen 5 SiC MOSFET (~30% lower on-resistance at Tj=175°C) in samples July 2026. Toyota bZ5 (HAIMOSIC JV, ~360K units/yr), Schaeffler (mass production Sep 2025), Infineon MOU (Sep 2025) all confirmed. CAUTION: Denso ¥1.3T bid withdrawn April 28, 2026; JV talks delayed — more complex than expected; P/B 2.56x vs 1.3x historical; analyst consensus PT ¥2,944 (-47% from market ¥5,400+).

Risk

1) JV EXECUTION RISK: Three-party JV delayed; Rohm president warned talks slower than expected (May 15, 2026). No equity structure/timeline yet. 2) VALUATION RISK: P/B 2.56x approaching historical peak; stock 3x'd from lows on JV/M&A speculation. Analyst consensus PT ¥2,944 vs ¥5,400+ = -47% implied downside. 3) SiC structural headwinds: Chinese vertical integration, BEV slowdown. 4) FY2025 NI -¥158.4B was WORSE than prior year ¥-57B — management credibility under scrutiny. 5) OP ¥30B guidance still formulating NI estimate — unusual complexity.

Monitoring Trigger

DO NOT ADD at current levels (P/B at historical peak, analyst consensus -47% below market). Re-entry conditions: (1) formal JV equity structure announced, OR (2) first clean profitable quarter in FY2026, OR (3) stock retraces to ¥3,500-4,000 range (closer to fundamental valuation). Q1 FY2026 results (Aug 2026) — watch OP run-rate toward ¥30B target.

Key Dates

2026-07catalystGen 5 SiC MOSFET discrete samples — design win campaigns begin for automotive traction and AI power supply
2026-08earningsQ1 FY2026 results — first evidence toward ¥30B OP guidance; watch: OP run-rate, SiC quality resolution, JV structure
2026-H2catalystJV formal structure announcement expected — if reached; Rohm president warned of delays May 15, 2026
2027catalystTSMC GaN process integration for AI server power market — diversification beyond SiC automotive

Key Metrics

Loss (NI -¥158.4B SiC impairment)
PE
~125x (near-breakeven NI; FY2028 target >20% OP margin)
Fwd PE
2.56
P/B
Loss
ROE
+1.6% Q3 FY2026 (recovering from -9.0% year ago)
Op Margin
43%
D/E
1.4%
Div Yield
-¥44B
FCF
¥1.32T
Mkt Cap

Business Segments

SegmentRevenueShareDescription
Discrete (SiC, MOSFET)¥210B44%SiC power devices — core EV play
LSI / ICs¥175B37%Analog, power management
Modules¥88B19%Power modules, LED

Supply Chain Evidence

EvidenceCustomerProductDetail
confirmedToyota bZ5 (China-market BEV)SiC MOSFETs via HAIMOSIC JV (Rohm + Zhenghai Group), ~360K units/yearMass production in HAIMOSIC JV (Shanghai). Toyota bZ5 targeted at China market.
confirmedSchaefflerSiC MOSFET bare chips for HV inverter brick targeting major Chinese carmakerMass production commenced September 2025.
confirmedInfineon TechnologiesSiC package second-source MOU — on-board chargers, PV, energy storage, AI data centersMOU September 25, 2025. Mutual SiC package second-source for selected device lines.
confirmed (MoU stage)Rohm + Toshiba TDSC + Mitsubishi Electric (JV MoU)Combined power semiconductor operating company — #2 global position if JV completesMoU signed March 27, 2026 by all 5 parties including JIP and TBJH. Combined share ~9.7-11% global, ranking above onsemi. Formal JV not yet established; talks delayed per May 2026 warning.

Recent News

Primary IR Documentation

Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).

Sources & References