Yageo Promises Technology Protection if Shibaura Acquisition Succeeds

Taiwanese chip component maker Yageo has pledged strict controls to prevent technology leaks if its bid to acquire Japan’s Shibaura Electronics succeeds, addressing Japanese national security concerns. Yageo’s Chairman Pierre Chen said the company will hold talks with Shibaura in mid-June in Tokyo to discuss cooperation plans.

Yageo, the world’s largest chip resistor producer, launched an unsolicited tender offer in February to gain full control of Shibaura, which specializes in thermistor technology. Yageo’s latest offer stands at 6,200 yen per share, valuing Shibaura at over 65 billion yen ($450 million), in a competitive bidding war against Japanese components supplier Minebea Mitsumi, which Shibaura selected as a “white knight.”

Chen emphasized that Yageo intends to invest heavily in research and development and expand Shibaura’s facilities in Japan. He assured regulators and the public that stringent safeguards would be in place to protect sensitive technology.

The acquisition aligns with Japan’s evolving approach to unsolicited takeovers, with 2023 M&A guidelines reducing resistance to such bids. Chen said discussions with Japan’s Ministry of Economy, Trade and Industry have progressed smoothly.

If successful, the deal would fill a gap in Yageo’s thermistor portfolio, enhancing product offerings for global customers. It would also ease supply chain management for major clients like Apple, Nvidia, and Tesla by providing a broader range of components from a single supplier.

Yageo is also a top global manufacturer of multilayer ceramic capacitors, crucial for devices such as Apple iPhones, Nvidia AI servers, and Tesla electric vehicles.