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ROHM COMPANY LIMITED

6963・Prime Market・Electric Appliances

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ROHM COMPANY LIMITED6963

Business

ROHM Co., Ltd. is a comprehensive electronic components manufacturer founded in Kyoto in 1954, operating four segments: LSI (Analog, Logic, and Memory), Semiconductor Devices (SiC/Si Power Devices and light-emitting elements), Modules (Print Heads and Optical), and Resistors. The group, which includes 7 domestic and 29 overseas subsidiaries, primarily serves the automotive, industrial equipment, consumer equipment, and computer & storage markets, and has built an integrated global supply chain spanning manufacturing to sales. Consolidated net sales for FY2026 (ending March 2026) were ¥481,148 million.

Business Model

The company handles materials, design, manufacturing, and quality control in-house across its group, supplying high-value-added components for automotive, industrial, consumer, and data center applications. Centered on technologically differentiated products such as SiC Power Devices and automotive LSI, the company maintains pricing power and sustains its technological edge through continued investment of ¥46,605 million in R&D expenses and ¥82,403 million in capital expenditures (FY2026 (ending March 2026)).

Company Strengths

The company acquired Germany's SiCrystal GmbH in 2009, establishing a vertically integrated structure spanning from SiC wafer manufacturing to final devices. Adoption of xEV-oriented SiC Power Devices in the automotive market has continued, and orders in the Semiconductor Devices segment expanded significantly in FY2026 (ending March 2026), rising 40.6% year on year to ¥242,942 million.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company recorded an impairment loss of ¥193,600 million, primarily on SiC business fixed assets, reflecting a downward revision to BEV market growth forecasts (a sharp expansion from ¥30,367 million in the previous fiscal year). On a non-consolidated basis, provisions for allowance for doubtful accounts related to affiliated companies and valuation losses on shares of affiliated companies were also recorded, resulting in net loss of ¥160,265 million for the period. Should discussions on integration with Toshiba Device & Storage and Mitsubishi Electric reach a final agreement, a revision of the medium-term management plan may become necessary, making it essential to reassess the positioning of the SiC business and the scenario for investment recovery.

In FY2026 (ending March 2026), net sales were ¥481,148 million (up 7.3% year on year), and operating profit was ¥10,864 million, marking a return to operating profitability for the first time in two fiscal years. Meanwhile, net loss attributable to owners of parent expanded significantly to ¥158,424 million from ¥50,065 million in the previous fiscal year. Equity capital decreased by ¥131,069 million, from ¥889,033 million to ¥757,964 million, and net assets per share also declined from ¥2,303.25 to ¥1,963.41. With substantial net losses recorded for two consecutive fiscal years, the erosion of the financial base is progressing, warranting attention to the sustainability of investment capacity and shareholder returns going forward.

Cash and cash equivalents at the end of FY2026 (ending March 2026) stood at ¥428,714 million, up ¥193,748 million from the previous fiscal year-end (¥234,966 million), but this increase was primarily attributable to proceeds of ¥207,825 million from sales and redemption of securities and investment securities within investing cash flow. Operating cash flow showed only modest improvement, at ¥89,448 million (versus ¥83,956 million in the previous fiscal year), while capital expenditure remained elevated at ¥110,965 million. As an external factor, the recovery in market conditions has boosted sales of industrial and consumer equipment, but there is a risk that if monetization of the SiC business is delayed, improvement in the underlying cash-generating capacity will remain limited.

Growth Strategy

Rebuilding a profitable business structure through structural reforms and building a foundation for next-stage growth centered on SiC Power Devices

Under the medium-term management plan with FY2028 as its final year, the company aims to build a robust business foundation resilient to market fluctuations and improve profitability. It is advancing structural reforms including reorganization of production sites, optimization of the business portfolio, and price rationalization, while curbing increases in fixed costs by minimizing capital expenditure to the necessary minimum and negotiating price pass-through for rising raw material costs.

The company aims to achieve monetization through expanded adoption of SiC Power Devices for xEVs. In light of the outlook that the medium-term growth rate of the BEV market will fall short of previous forecasts, the company recorded an impairment loss of ¥193,600 million, primarily on SiC-related fixed assets, to optimize asset value. Based on the view that the long-term trend toward vehicle electrification will continue, the company maintains that demand for SiC power semiconductors will continue to expand.

Announced in a timely disclosure dated March 27, 2026. Both matters are at the basic agreement stage, and the impact on consolidated results for FY2027 (ending March 2027) is expected to be minor. Should a final agreement be reached, the medium-term management plan may be revised, and the company expects the integration to expand scale and strengthen competitiveness in the power device field.

Under a profit distribution policy targeting a consolidated dividend payout ratio of 30%, the company has maintained an annual dividend of ¥50 per share (both the FY2026 (ending March 2026) results and the FY2027 (ending March 2027) forecast are ¥50) despite recording large net losses for two consecutive fiscal years. The company will conduct share buybacks at appropriate times to improve capital efficiency and work to improve various indicators such as ROE.

Last updated: July 19, 2026