TAIPEI (Taiwan News) — Taiwanese electronic components manufacturer Yageo said June 4 that Japanese firm Shibaura Electronics has proposed a meeting to explore potential shared goals.
The dialogue follows Yageo’s decision on May 8 to raise its tender offer, bringing the total value of the deal to NT$20 billion (US$668 million), up from NT$14 billion announced in February. Yageo described the acquisition as “a mutually beneficial opportunity.”
Yageo, which reported NT$121.6 billion (about US$4 billion) in revenue last year, is a major supplier of passive electronic components—those that store, consume or release energy rather than amplify signals. According to Nikkei Asia, CEO Chen Tai-min (陳泰銘) said Yageo currently lacks sufficient coverage in surge-protection components.
Shibaura’s specialization in negative temperature coefficient thermistors complements Yageo’s portfolio. NTC thermistors play a critical role in temperature sensing, control and compensation in electronic circuits, making them a key asset in the proposed partnership.
Yageo said it values Japan’s leadership in electronic component technologies and does not intend to alter Shibaura’s core identity or operational independence. Instead, the company aims to enhance Shibaura’s R&D capabilities, expand its production footprint in Japan and strengthen its global market reach, particularly in the Americas and Europe.
The acquisition is intended to accelerate Shibaura’s product development roadmap and enable faster response to evolving customer design needs. Yageo plans increased investments in innovation and will share its marketing network, which spans more than 270,000 clients across various industries.
Yageo also highlighted its strengths in high-volume production, design integration and custom solutions as ways to help Shibaura maintain technological leadership while improving efficiency. The companies plan to collaborate on best practices and explore integrating artificial intelligence to enhance quality control and optimize manufacturing processes.
Beyond technical and commercial synergies, Yageo noted the deal offers a platform to navigate global uncertainties—such as geopolitical tensions and trade risks. With operations in 35 countries, including 61 manufacturing facilities and 20 R&D centers, Yageo said it is well-positioned to help Shibaura mitigate tariff impacts and respond to international market shifts.
The transaction will be financed through internal cash reserves, ensuring a straightforward structure that keeps both parties focused on strategic growth.
“We think we can create a win-win situation with the strategic alliance with Shibaura,” Chen said.
Founded in Taiwan in 1977, Yageo now generates over US$4 billion in annual revenue and employs more than 40,000 people worldwide.
