Core Viewpoint - ROHM has announced its mid-term business plan for fiscal years 2026 to 2028, setting ambitious financial targets for fiscal year 2028, including sales exceeding 500 billion yen, an operating profit margin over 20%, and a return on equity (ROE) exceeding 9% [2] Group 1: Growth Strategy - The company aims to focus on growth in the automotive sector, particularly in power and analog circuits, while also strengthening its industrial and consumer electronics businesses to create a balanced product portfolio [2] - ROHM plans to significantly expand its silicon carbide (SiC) power device business while phasing out unprofitable operations [2] - The sales target for the automotive sector is set to reach 275 billion yen, accounting for 55% of total sales, with an emphasis on AI server industrial equipment [2] Group 2: LSI and Power Device Business - The LSI business aims for sales exceeding 110 billion yen and an operating profit margin over 22%, focusing on high-profit and high-growth areas through R&D investment [3] - The power device business targets sales of over 215 billion yen and an operating profit margin exceeding 23%, with a focus on making the SiC business a profit driver [5] Group 3: Market Expansion and Product Development - ROHM has delivered products to 16 automotive manufacturers, expecting to increase inverter deliveries to approximately 3 million units by fiscal year 2028, with a customer base projected to triple [6] - The company is expanding into plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV) while enhancing competitiveness through the launch of fifth-generation products [6] Group 4: Manufacturing and Cost Optimization - ROHM plans to improve its substrate business and advance SiC crystal substrate manufacturing processes, primarily managed by its German subsidiary SiCrystal [6] - The company aims to achieve nearly complete in-house production of epitaxial wafers to reduce costs and improve yield, with a focus on transitioning to 8-inch wafers for better quality [7] Group 5: Future Sales Goals - The company has set a target of achieving sales of 30 billion yen for AI server solutions by fiscal year 2030, aiming for over 110 billion yen in sales and an operating profit margin exceeding 22% for general-purpose and other businesses by fiscal year 2028 [7] Group 6: Corporate Restructuring - ROHM announced a restructuring plan to consolidate its four domestic manufacturing subsidiaries and Shiga factory into two companies, focusing on front-end and back-end processing, set to begin operations on April 1, 2026 [8]