Summary: Mitsubishi Corp, owned by Warren Buffett’s Berkshire Hathaway, is reportedly considering a bid for Fujitsu’s chip packaging unit Shinko Electric Industries. The Japanese trading house has set up a team to explore opportunities in semiconductor manufacturing. Fujitsu has put its 50% stake in Shinko Electric on sale, drawing interest from global buyout firms and government-backed Japan Investment Corp. Mitsubishi is planning a joint bid with one of the potential buyers. However, the deal is still in early stages and there is no guarantee it will go through. Semiconductor packaging is a key strength for Japan, with Shinko, Ibiden, and Toppan Holdings being major players in the global supply chain. The Japanese government has also designated chips as critical materials and is investing heavily in the semiconductor industry.
Mitsubishi Corp, a leading Japanese trading house, is reportedly considering a bid for Fujitsu’s chip packaging unit Shinko Electric Industries as it explores opportunities in semiconductor manufacturing. Fujitsu has put up its 50% stake in Shinko Electric for sale, attracting interest from global buyout firms such as Bain Capital, KKR, Apollo Global Management, and government-backed Japan Investment Corp. Mitsubishi, backed by Warren Buffet’s Berkshire Hathaway, plans to make a joint bid with one of the potential buyers, but talks are still in the early stages and a partner has not been decided. However, there is no guarantee that the deal will go through. Semiconductor packaging is a strong area for Japan, with Shinko, Ibiden, and Toppan Holdings being major players in the global chip supply chain.
Japan has designated chips as critical materials and has invested billions of dollars to boost its semiconductor industry. The country is also providing subsidies for chip facilities, including those being considered by Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics. Mitsubishi’s entry into the semiconductor industry comes at a time when Japan is seeking to revitalize its aging semiconductor sector, which once dominated the global market in the late 1980s. However, recent volatility in energy prices has affected Mitsubishi’s overall performance. The deal to acquire Shinko Electric could face national economic security concerns. The potential value of the deal has not been disclosed and it is unclear if Mitsubishi has hired banks to advise on the bid. Both Mitsubishi and Fujitsu declined to comment on the matter.
Tags: Mitsubishi Corp, Fujitsu, Shinko Electric Industries, semiconductor manufacturing, chip packaging, buyout firms, Japan Investment Corp, semiconductor industry, chips, economic security