**Yageo Corp. Plans to Retain Shibaura Electronics’ Technology in Japan**
Taiwan’s Yageo Corp. has announced its intention to retain the most advanced technology of Shibaura Electronics Co. in Japan if it successfully acquires the artificial intelligence sensor manufacturer. This statement from Yageo’s founder and Chairman, Pierre Chen, comes amid Japan’s efforts to balance shareholder returns with the need to keep cutting-edge AI technology within its borders.
Shibaura’s high-precision thermistors play a crucial role in monitoring the internal temperatures of electronic devices, preventing overheating—a significant concern in AI applications, particularly in data centers that manage vast amounts of data through clusters of high-performance servers.
“It is not in Yageo’s interest to see Shibaura’s technology transfer to countries that Japan considers to be unfriendly,” Chen stated during a press conference in Taipei. He emphasized that Yageo would implement even stricter controls to prevent any potential technology leaks.
Yageo is currently competing against Minebea Mitsumi Inc., a supplier for Nintendo Co., in its bid for Shibaura, offering ¥6,200 per share compared to Minebea’s latest offer of ¥5,500. The tender offer period for Yageo concludes on June 19, although Chen did not indicate whether an extension would be considered. He mentioned that Yageo officials plan to meet with Shibaura’s management in Tokyo during the week of June 16 to discuss the proposal.
Chen noted that Yageo has maintained positive communication with Japan’s influential Ministry of Economy, Trade and Industry (METI). However, a Shibaura representative declined to comment on the situation, and inquiries to METI outside of business hours went unanswered.
Yageo’s acquisition bid has sparked resistance among certain Japanese business circles wary of foreign takeover attempts. Tokyo officials are divided on the matter, as regulators aim to enhance corporate transparency and shareholder returns by encouraging companies to dissolve cross-shareholdings. This, coupled with a weak yen, has made it easier for foreign entities to pursue acquisitions of Japanese firms.
**FAQ**
**Q: Why is Yageo Corp. interested in acquiring Shibaura Electronics?**
A: Yageo Corp. aims to acquire Shibaura Electronics to enhance its capabilities in artificial intelligence technology, particularly through Shibaura’s advanced thermistors, which are essential for managing the internal temperatures of electronic devices.
