[Company analysis] Rohm Co., Ltd. (ローム)

「Rohm Co., Ltd. (ローム)」is an electronic component manufacturing company that mainly produces LSIs, transistors, diodes, LEDs, and resistors. The company name "Rohm" is a compound word of "R" and "Ohm" which means resistance. Since it is a company that focuses on B2B, its popularity with the general consumer is fairly low, but it handles various electronic components including semiconductors, and acheived the top share in Japan for custom LSIs. The number of consolidated employees is approximately 21,308.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Rohm Co., Ltd.
Company name (Japanese)	ローム
Date of establishment	Wednesday, September 17, 1958
Headquarters location	〒615-8585 京都府京都市右京区西院溝崎町21
Capital	86,969
Consolidated sales	398,989
Consolidated operating profit	55,909
Consolidated total assets	874,427
Consolidated capital	766,754
Capital adequacy ratio	87.7%
Consolidated number of employees	21,308

 

 

 

2. Summary and Features

 
The current「Rohm」was founded in 1958, based on the patent for carbon film resistance that the founder, Sato Kenichiro(佐藤研一郎), enrolled at Ritsumeikan University. After that, they started manufacturing large-scale integrated circuits and custom LSIs. Although it is not well known to the general consumers due to the characteristics of the electronic component industry, it holds a high market share so far as it overwhelms the Japanese custom LSI market.

In addition to custom LSIs, they also provide comprehensive support from development to manufacturing and sales of electronic components such as semiconductors. 「Rohm」has a diverse lineup of opto-semiconductors, electronic components, LED lighting, and modules, and this company is developing system solution business in various fields including automobile-related equipment, industrial equipment, and home appliances.

One of the characteristics of「Rohm」is that it has a "Vertical integrated production system". Since they purchased a SiC wafer manufacturer in Germany in 2009,「Rohm」has been producing from wafer level to semiconductors as final products in-house. Thanks to this, if a problem occurs in a specific process, this company is possible to quickly grasp the situation and take appropriate measures. This contributes stable supply of high-quality products in a long-term.

In 2012,「Rohm」succeeded in the world's first successful mass production in the power module field, and they were able to establish a brand in the SiC field. Compared to conventional silicon products, this power modules are SiC products that can minimize power loss and can contribute to improving EV cruising range. This company now holds the second largest market share in the SiC field after「Infineon」, the world's largest power semiconductor company.

 

 

 

3. Major Business

 

■ Development, manufacturing and sales of electronic parts including semiconductors

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		352,010	397,106	398,989
Consolidated operating profit		31,827	57,004	55,909
Consolidated total assets		834,503	870,034	874,427
Consolidated net assets		725,452	751,877	766,754
Breakdown of sales	LSI business	163,918	186,305	185,872
	Semiconductor device business	136,510	159,133	159,795
	Module business	39,640	41,921	40,202
	Others	21,248	21,984	22,716
	Adjustments	-9,307	-12,237	-9,596