Media365
Prices are rising across Japan, but not for the components of chipmaking gear. Tokyo Electron supplier Marumae is seeking out deals to change that.
Many Japanese makers of vacuum parts found in chip tools have yet to reap gains from an artificial intelligence boom that is spurring billions of dollars of spending on Nvidia chips and other hardware, according to Marumae president Toshikazu Maeda.
That is because such manufacturers are fighting with dozens of other companies in Japan that specialise in creating airtight spaces inside bigger machines – a niche but essential area worth less than ¥100 billion (US$680 million) in domestic sales.
The country’s chip tool components sector was long overdue for consolidation, said Maeda, who spearheaded the acquisition of peer KM Aluminum for ¥9 billion from private equity fund Japan Industrial Partners in March. Beyond that deal, talks have dried up, although there was an urgent need for scale in the sector, he said in an interview.
“Nobody is selling,” he said, adding that there are structural hurdles that prevent consolidation in Japan’s fragmented market. “But mergers and acquisitions is one tool for growth, and we will be ready when the chance and synergies present themselves.”
Potential targets include toolmakers for components needed in the final stages of chipmaking and companies with specialised technologies in areas such as resins. Marumae was also eyeing new areas including aerospace and defence, which were “challenging but profitable segments”, Maeda said.
