Yageo Corp. Bids for Shibaura Electronics, Promises to Safeguard AI Technology
Taiwan’s Yageo Corp. has announced plans to acquire Shibaura Electronics Co., pledging to retain the company’s advanced technology in Japan if the deal goes through. Yageo Chairman Pierre Chen emphasized the importance of keeping Shibaura’s high-precision thermistors—a critical component in preventing overheating in AI-driven data centers—within Japan. This move comes amid Tokyo’s efforts to balance shareholder returns with the necessity of protecting cutting-edge technology from foreign competitors.
Chen stated, “It is not in Yageo’s interest to see Shibaura’s technology transfer to countries that Japan considers to be unfriendly,” underlining the company’s commitment to implementing stringent controls to prevent technology leaks.
The acquisition bid puts Yageo in competition with Minebea Mitsumi Inc., a supplier for Nintendo, as it offers ¥6,200 per share, outpacing Minebea’s ¥5,500 offer. The tender offer period is set to conclude on June 19, although Chen did not specify if Yageo would consider extending the deadline.
Company officials from Yageo are scheduled to meet with Shibaura management in Tokyo the week of June 16 for discussions regarding the offer. Chen noted that Yageo has maintained positive communication with Japan’s Ministry of Economy, Trade and Industry (METI), although a Shibaura representative declined to comment, and METI officials were unavailable for immediate comment.
Yageo’s bid has sparked anxiety among some Japanese business entities resistant to foreign takeovers. Tokyo’s regulators are focused on enhancing corporate governance and shareholder value, while concurrently facing challenges posed by an increasingly favorable landscape for foreign acquisitions due to a weakened yen.
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