Japan’s top chip distributor eyes acquisitions in China and India

Japanese chip distributor Macnica Holdings 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’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 United States 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.

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