Japanese electronics trading company Satori Electric Co., Ltd. has been making a series of company acquisitions outside of Japan. For one, the company announced the creation of an Indian electronic component sales company as a subsidiary in 2023. Also, last May, it announced the acquisition of an analog semiconductor design company based in the Netherlands. Mainly, these are attempts to seize growth in areas where other companies are thin on the ground.

Aiming for Growth in Areas with Little Competition

“We will enter into areas where there is little competition, such as the upstream of the semiconductor manufacturing process.” Koji Suwahara, Managing Executive Officer of Satori Electric and his team explained the reason for their aggressive investment in an interview in April.

Specifically, in Feb. 2024, Satori Electric signed an agreement to acquire MAGnetIC Holding B.V., a Dutch semiconductor design company. It expects to complete the transaction in May.

MAGnetIC Holding is the holding company of SystematIC design Holding B.V. in the Netherlands. Majority of its 23 employees are engineers. Particularly, the company specializes in analog and mixed-signal integrated circuit (IC) design for wide use in automotive, industrial, and consumer applications.　

According to Suwahara, SystematIC’s growth in the analog IC industry has been steady. Mainly, the company’s strength is “the experience and knowledge in providing appropriate quotes for customer requirements is remarkable.” Specifically, the company plans to leverage Satori Electric’s network to sell its products in China, Korea, Taiwan, the U.S., and fast-growing India. It aims to expand its operations beyond IC design to include manufacturing. Thus, it moves closer to the role of semiconductor manufacturer. Also, the company intends to expand its business to include not only IC design but also manufacturing; thereby, approaching the role of a semiconductor manufacturer.

Industrial Promotion of India

Moreover, Satori Electric also collaborates with SM Electronic Technologies Pvt. Ltd. (SMET), an electronic component sales subsidiary in India. SMET’s customers include manufacturers of motorcycles and tricycles, which are the main vehicles for locals. It is also expanding into automotive components. Compared to North America and East Asia, analog IC design is still in its infancy in this region, but Satori Electric is in contact with several companies to tap demand. Mainly, the company is targeting local capital. Also, it is aware of the Indian government’s efforts to promote the domestic industry.

This is an English translation of an original Japanese article published in Dempa Shimbun Daily.

-24 May 2024-