The Japanese industry of power semiconductors, used in electric vehicles and other products, is undergoing realignment, with manufacturers seeking consolidation to compete with foreign rivals.

Rohm, Toshiba and Mitsubishi Electric launched discussions on integrating their power chip operations after auto parts supplier Denso offered to acquire Rohm.

Although Japanese makers comprise a sizable combined share of the global power chip market, the country has many manufacturers, each operating on a relatively small scale. Faced with the rise of Chinese manufacturers, companies have recognized the need for market reorganization, with Mitsubishi Electric President Kei Uruma saying that firms should “work together and develop chips that can compete with China and other countries.”