The large passive components manufacturer plans to expand to the Japanese market and further increase its capacity with this takeover.
Walsin Technology announced on November 30 2020 that the company will purchase 35.64% to 50.10% shares of Soshin Electric at a price of JPY 460 per share. It is estimated that the total purchase cost will reach NTD 700 million and up to NTD 1 billion. This takeover of Walsin aims at expanding to the Japanese market and growing the customer base. The public offer has been approved by NGK, the largest shareholder and the current parent company of Soshin. The acquisition is expected to be completed in January 2021.
Founded in 1938, Soshin Electric has been providing complete EMC solutions ever since, from noise testing service to EMI filters and film capacitors. It operates through two segments, the Information and Communications segment and the Power Electronics segment. The Information and Communications segment offers couplers, multilayer dielectric filters, and thick-film printed circuit board, while the Power Electronics segment offers plastic film capacitors and noise filters.
As a manufacturer of passive components with a one-stop-shop product portfolio, Walsin Technology has 11 manufacturing facilities and six R&D centers globally – and has achieved a production capacity of over 50 billion in 2020. Market estimates show the company has about 22% share of the global chip resistor market.