Japan’s top chip distributor Macnica eyes acquisitions in China, India

Japanese chip distributor Macnica Holdings Inc. is seeking possible acquisition targets in other parts of Asia, a sign of industry pressures to consolidate.

Macnica, which sells chips made by the likes of Intel Corp.’s Altera, is eyeing an overseas acquisition to better hold its own against bigger competitors. Scale is becoming important even for distributors, who need to navigate the technological rivalry between the US and China and the resulting export controls and supply chain snarls, according to Macnica President Kazumasa Hara. China, Southeast Asia, India and South Korea are all areas of interest, he said.

“We need to raise our market share as quickly as possible,” Hara said in an interview, adding that Macnica’s market presence remains low in growth regions such as China and Southeast Asia. An acquisition is “one option” and a deal requiring an investment of billions of dollars is “very likely,” he said.

Japan’s biggest chip distributor, Macnica holds an estimated 22% share in a country crowded with more than 20 rivals. In April, Macnica bought one such competitor, Glosel Co., and the sector’s also seen the merger of Ryoyo Electro Corp. and Ryosan Co., but Hara said he isn’t eager for another acquisition at home. The company should be able to hit its market share target of 30% or more in 2030 organically, he said, reflecting growing concentration of business seen in chip distribution elsewhere.