March 3, 2025 /SemiMedia/ — Yageo Corporation recently announced its intention to launch a public tender offer to acquire the Japanese listed company, Shibaura Electronics. The total value of the transaction is expected to be approximately ¥65.559 billion, as Yageo looks to strengthen its sensor business to meet the growing demand in AI and electric vehicle (EV) applications.

Yageo’s founder and chairman, Pierre Chen, emphasized that even if Shibaura Electronics does not agree to the acquisition, Yageo is determined to proceed with the takeover. He pointed out that Shibaura has excellent temperature sensor technologies that are crucial for AI and electric vehicle applications. Yageo has long been monitoring Shibaura Electronics, but with approximately 60% of Shibaura’s business concentrated in Japan, and only 6% of its sales coming from key markets like China, Europe, and the U.S., the company has limited global reach.

Shibaura Electronics’ business is primarily focused on home appliances, which account for 44% of its revenue, while its automotive and industrial applications make up a much smaller portion, limiting its growth potential. Yageo believes that through the acquisition, it can help Shibaura expand its presence in the European and U.S. markets and fuel growth in high-potential areas such as EVs, AI, and healthcare.

Pierre Chen made it clear that Yageo would proceed with the takeover offer even without Shibaura’s consent, but would show utmost sincerity in gaining Shibaura’s approval. He revealed that Yageo had made numerous attempts to contact Shibaura’s management team but had not yet been able to meet with them. Chen is hopeful that a face-to-face meeting will help Shibaura’s management understand Yageo’s value and align with the vision.

Despite the acquisition, Chen emphasized that Yageo does not intend to interfere with Shibaura’s operational independence. He acknowledged that Shibaura possesses unique technology and corporate spirit that Yageo does not have, which is why Yageo plans to maintain Shibaura's management independence while focusing on achieving mutual growth through collaboration.

Yageo plans to expand Shibaura’s production facilities and invest in R&D to help the company grow in global markets. Chen stated that the post-acquisition strategy will focus not just on cost-cutting but on collaboration that will deliver greater opportunities for growth, especially in fields like AI, automotive technology, and other cutting-edge industries.