Japan's largest chip distributor Macnica targets mergers and acquisitions in Asia, including China and India, to expand market share
Japan's largest chip distributor Macnica Holdings Inc. is seeking potential acquisition targets in other parts of Asia, indicating that the industry is facing consolidation pressure.
Macnica mainly sells chips produced by companies such as Intel Altera and is considering overseas acquisitions to better compete with larger competitors. Macnica President Kazumasa Hara said that scale has also become important for distributors, who need to deal with the technological competition between the United States and China, as well as the resulting export controls and supply chain disruptions. China, Southeast Asia, India, and South Korea are all target regions for its acquisition.
Kazumasa Hara stated that acquisition is an option, and a deal that requires billions of dollars in investment is highly likely.
As the largest chip distributor in Japan, Macnica has an estimated 22% market share in a market with over 20 competitors in the country. In April of this year, Macnica acquired one of its competitors, Glosel Co., but Kazumasa Hara stated that he is not in a hurry to make another acquisition domestically. He said that the company should be able to achieve a market share target of 30% or higher by 2030 through organic growth, which reflects the increasing concentration of business in the chip distribution field.
Kazumasa Hara stated that Macnica may also expand into other areas, such as cybersecurity, through acquisitions. Looking ahead, that will be a growth area, "he said, with the goal of reducing Macnica's reliance on semiconductors, which account for 90% of its sales. In addition to network security, Macnica is also exploring areas that are less capital intensive than semiconductors, such as autonomous vehicle networks and healthcare.
Macnica's stock price has fallen by about 40% from its peak in February, partly due to its risks in the Chinese industrial equipment chip industry.
Kazumasa Hara stated that acquisition is an option, and a deal that requires billions of dollars in investment is highly likely.
As the largest chip distributor in Japan, Macnica has an estimated 22% market share in a market with over 20 competitors in the country. In April of this year, Macnica acquired one of its competitors, Glosel Co., but Kazumasa Hara stated that he is not in a hurry to make another acquisition domestically. He said that the company should be able to achieve a market share target of 30% or higher by 2030 through organic growth, which reflects the increasing concentration of business in the chip distribution field.
Kazumasa Hara stated that Macnica may also expand into other areas, such as cybersecurity, through acquisitions. Looking ahead, that will be a growth area, "he said, with the goal of reducing Macnica's reliance on semiconductors, which account for 90% of its sales. In addition to network security, Macnica is also exploring areas that are less capital intensive than semiconductors, such as autonomous vehicle networks and healthcare.
Macnica's stock price has fallen by about 40% from its peak in February, partly due to its risks in the Chinese industrial equipment chip industry.