Taipei/Tokyo: Taiwan’s Yageo Corporation has committed to implementing stringent technology protection measures should its acquisition of Japan’s Shibaura Electronics be successful. The announcement comes in response to growing concerns in Japan surrounding the implications of the deal on national security.
Chairman Pierre Chen, speaking to reporters in Taipei on Saturday, confirmed that the company is scheduled to meet Shibaura representatives in Tokyo in mid-June to explore avenues for potential cooperation.
Yageo, the world’s largest manufacturer of chip resistors, initiated an unsolicited tender offer for Shibaura Electronics in February. The Japanese firm is recognised for its expertise in thermistor technology, which complements Yageo’s existing portfolio. The initial offer of ¥4,300 per share valued Shibaura at over ¥65 billion (approximately $450 million).
Shibaura declined the offer and instead aligned with Japanese components supplier Minebea Mitsumi, sparking a bidding war. Yageo has since raised its offer to ¥6,200 per share, while Shibaura’s stock closed at ¥6,100 on Friday.
Chen outlined Yageo’s strategy to inject capital and enhance research and development capabilities in Japan. He also signalled plans for increased investment to expand Shibaura’s local facilities.
Addressing Japan’s national security concerns, Chen emphasised Yageo’s commitment to strict controls to prevent any leakage of sensitive technology. He also noted that discussions with Japan’s Ministry of Economy, Trade and Industry have been progressing smoothly.
The acquisition, if successful, would fill a critical gap in Yageo’s thermistor offerings, strengthening its ability to serve global customers. The integration would also facilitate Shibaura’s expansion into international markets, according to Chen.
Yageo aims to reduce the operational complexity faced by major clients, including Apple and Nvidia, by offering a more comprehensive suite of components and solutions. In addition to leading the global chip resistor market, Yageo is the third-largest producer of multilayer ceramic capacitors and supplies essential components for Apple’s iPhones, Nvidia’s AI servers, and Tesla’s electric vehicles.
-Reuters
