Japan Autos & Semiconductors: Who could be Denso‘s next semiconductor acquisition target?

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Japan Autos & Semiconductors: Who could be Denso‘s next semiconductor acquisition target?

8 July 2026

Japan Autos & Semiconductors

Japan Autos & Semiconductors: Who could be Denso's next

semiconductor acquisition target?

Since Denso's acquisition proposal for Rohm was withdrawn at the end of April, a number of Masahiro Akita

+81 3 6777 6998 investors continue to show interest and raise questions about Denso’s next steps. We believe

masahiro.akita@bernsteinsg.com M&A remains the most realistic and effective option to achieve the growth targets outlined in

its mid-term plan. In this report, we examine Denso's semiconductor business strategy, and

David Dai, CFA assess the strategic options potentially available to the company.

+852 2918 5704

david.dai@bernsteinsg.com

Denso to expand into industrial and consumer semis: Denso's semi business is entirely

Tomohiro Kashimoto captive and centered on Power & Analog, including Si-IGBT, SiC, and battery management

+81 3 6777 6975 ASICs. Semiconductor revenue was equivalent to ~JPY 420 bn in FY3/22, with Discrete

tomohiro.kashimoto@bernsteinsg.com accounting for ~74% of revenue and ASICs for ~16%. The mid-term plan highlights

expansion of its semi business into industrial/consumer electronics. As Denso’s minority

Seunghyeok Kim investments and partnerships with power semi majors have focused on strengthening its +81 3 6777 6974

seunghyeok.kim@bernsteinsg.com auto business, we believe a target with industrial and consumer exposure is key.

Jack Lin Denso’s target segments look attractive: While overall semi market growth is driven by

+852 2123 2683 AI-related memory and ASIC/ASSP, Denso’s target segments still are appealing. Across

jack.lin@bernsteinsg.com