Denso Corp. shares tumbled 5.6% in Tokyo trading after Bloomberg Markets reported the auto parts giant launched a takeover bid for Rohm Co. valuing the electronics manufacturer at around ¥1.3 trillion ($8.3 billion).

Denso, a major supplier to automakers, first approached Rohm in February, according to the report citing unidentified sources. The Kyoto-based chipmaker has established a special committee to evaluate the offer but hasn't commented. If rejected, Denso may proceed with an unsolicited bid, the report stated.

Japanese automakers, struggling to adapt to the electric vehicle transition and software integration, have increasingly partnered with tech firms. This move follows a 2021 semiconductor shortage that forced Honda to cut sales forecasts and reduce output after China blocked Nexperia BV exports. Denso's stake in Rohm rose to nearly 5% in July 2023, per Nikkei.

The potential acquisition reflects Denso's strategy to secure critical electronics capabilities amid industry-wide supply chain vulnerabilities.