TAIPEI (Taiwan News) — Taiwan-based electronics manufacturer Yageo announced Tuesday that it has received approval under Japan’s foreign direct investment regulations to bid on Shibaura Electronics, marking the final regulatory step for completing its public tender offer.
The clearance was granted following a review under Japan's Foreign Exchange and Foreign Trade Act, including authorization from Japanese authorities such as the Ministry of Economy, Trade and Industry. In line with Japanese regulations, Yageo will extend the tender offer period by ten business days, now concluding on Sept. 18, according to CTEE.
Shibaura is a globally recognized manufacturer of negative temperature coefficient thermistors, essential for temperature sensing, control, and compensation in electronic circuits. Its operations are considered sensitive to national security due to the strategic role its components play in key electronic systems, according to Reuters.
Yageo, the world’s largest chip resistor maker, passed Japan’s security review after reportedly agreeing to government safeguards to prevent leakage of sensitive technology. The review, spanning February to September with multiple procedural updates, underscores Shibaura’s strategic importance and Japan’s growing vigilance over critical industries.
The acquisition has attracted investor attention as a test of Japan’s openness to unsolicited foreign bids. For Japanese authorities, the deal illustrates the challenge of protecting strategic technology, while encouraging foreign investment.
The tender offer is set at 7,130 yen (NT$1,473) per share, beating a rival 6,200 yen bid from Japanese component maker Minebea Mitsumi. With approval secured, Yageo expressed confidence in completing the deal.
Yageo said that it values Japan’s leadership in electronic components and will maintain Shibaura’s operational independence. The company plans to strengthen research and development, expand production in Japan, and boost Shibaura’s presence in global markets, especially in the Americas and Europe.
The company also committed to a fair and transparent tender process, pledging to provide shareholders with all available information and avoid coercive or misleading practices.
“We believe this strategic alliance with Shibaura can create a win-win situation,” said CEO Chen Tai-min (陳泰銘).
Founded in Taiwan in 1977, Yageo generates over NT$123 billion (US$4 billion) in annual revenue and employs more than 40,000 people worldwide.
