Japanese chip distributor Macnica Holdings Inc. is actively exploring acquisition opportunities across Asia as it seeks to expand its footprint in the face of increasing industry consolidation and the intensifying global tech rivalry. With major competitors expanding their scale, Macnica President Kazumasa Hara emphasized the importance of growing market share to stay competitive in an environment shaped by the US-China trade tensions, export controls, and disrupted supply chains.

Currently Japan's largest chip distributor with an estimated 22% market share, Macnica aims to strengthen its position in fast-growing regions such as China, Southeast Asia, India, and South Korea. Hara noted that an acquisition could involve billions of dollars, marking it as a "very likely" option. "We need to raise our market share as quickly as possible," he explained. The company's push for expansion reflects broader trends in the chip distribution sector, where consolidation has become increasingly common as players seek to navigate global market uncertainties.

In April, Macnica made its first major acquisition in the domestic market by purchasing competitor Glosel Co., and this move was followed by the merger of other industry players like Ryoyo Electro Corp. and Ryosan Co. However, Hara indicated that the company isn't focusing on further domestic acquisitions, as it aims to organically grow its share to 30% by 2030.

Looking beyond semiconductors, Macnica is also considering diversification into sectors like cybersecurity, self-driving car networks, and healthcare. The company recognizes the growing importance of cybersecurity as a future growth area, and Hara sees it as a key area for investment. Currently, semiconductors make up 90% of Macnica's sales, but Hara is determined to reduce this reliance and expand into less capital-intensive fields.

Despite its efforts, Macnica's stock has seen a 40% drop since February, partly due to its exposure to industrial equipment chips in China. However, Hara remains optimistic about the company's long-term prospects. "It's important to always be on the lookout for cutting-edge technologies to commercialize, just as we did with semiconductors in the past," he said.

As Macnica eyes a larger role in the global semiconductor supply chain, its expansion efforts signal the growing pressure for chip distributors to scale up in an increasingly competitive and volatile market.