[Electronics] APAC Cross-Border M&A Involving Japanese Companies: Review 2025 and Insight for 2026

In 2025, Japanese companies completed 20 cross-border M&A transactions in the electronics sector across the Asia–Pacific region. Two structural themes stood out clearly: the pursuit of technology acquisition in advanced components and devices, and the reconfiguration of manufacturing and packaging supply chains. Activity was concentrated in Taiwan, China, and Singapore, and spanned medical devices, optical modules, factory automation equipment, and power electronics. Each market exhibited distinct strategic drivers, contributing to a diverse set of portfolio shifts among Japanese corporates.

Taiwan: Restructuring in Electronic Components and Semiconductor-Adjacent Segments

Taiwan emerged as one of the most dynamic markets for electronics-related M&A in 2025. TOPPAN Holdings divested all shares in its Taiwanese subsidiary, Giantplus Technology, thereby advancing an exit strategy for LCD-related legacy businesses. Conversely, the successful tender offer by a Taiwanese player for Shibaura Electronics underscored the increasing fluidity of capital relationships between Japan and Taiwan in high-value component segments such as temperature sensors. As semiconductor testing equipment and component supply chains continue to deepen in Taiwan, access to this ecosystem remains a critical strategic priority for Japanese corporates seeking to maintain competitiveness in next-generation manufacturing technologies.

China: Restructuring in Optical and Electronic Components and the Consolidation of Device Businesses

China saw a concentration of restructuring actions, including business divestitures, the establishment of new joint ventures, and broader portfolio reorganisation within electronics‑related operations. A notable example was the formation of a joint venture between MarkLines and Huaqin Technology, an ODM manufacturer of electronics and software. At the same time, investments continued in precision and optical components, driven by rising demand in automotive and medical optical modules. Japanese companies also advanced the reconfiguration of their factory automation and device businesses in China, reflecting intensifying domestic competition and the need to selectively focus on high-value activities. Overall, 2025 marked a year in which Japanese manufacturers sharpened selection and concentration decisions in response to shifts in local market dynamics.

Singapore: Minority Investments in Factory Automation and Medical IoT Startups

Singapore continued to strengthen its position as a hub for high‑tech startups and advanced manufacturing. Several minority investments were observed into companies operating in the FA and medical IoT domains. Denka invested in Aevice Health, a developer of wearable electronic stethoscopes, thereby extending its technological linkage into the medical-device field. RYODEN (Ryoden Shoji) acquired the Japan business of Akribis Systems, enhancing its supply-chain capabilities in FA equipment. Singapore’s ecosystem—spanning industrial robotics, sensor technology, and healthcare IoT—has expanded significantly, providing Japanese corporates with opportunities to connect with emerging solutions while limiting capital exposure through minority stakes.

Vietnam: Reallocation of Packaging and Manufacturing Processes

In Vietnam, transactions were centered on manufacturing-process realignment, particularly within packaging and backend operations. Torex Semiconductor transferred its stake in TVS, a Vietnamese company responsible for packaging processes, to Taiwan’s PANJIT. This enabled the company to optimize its global production footprint and rebalance manufacturing loads across facilities. Vietnam continues to offer cost advantages and operational stability as a manufacturing base, prompting Japanese companies to refine the distribution of individual production processes across regional sites.

Notable Transactions

TOPPAN Holdings (Taiwan): Divested all shares in Giantplus Technology, advancing exit from mature LCD businesses.
A Taiwanese bidder (Taiwan → Japan): Completed TOB for Shibaura Electronics, reshaping Japan–Taiwan capital links in precision components.
MarkLines (China): Established a JV with Huaqin Technology, expanding electronics/ODM connectivity.
Denka (Singapore): Invested in Aevice Health, accessing wearable medical‑device technology.
RYODEN (Singapore): Acquired Japan business of Akribis Systems, strengthening FA equipment supply chains.
Torex Semiconductor (Vietnam): Transferred its packaging‑process subsidiary to PANJIT, reallocating manufacturing processes.

Other Markets: Healthcare IoT and Power Electronics Activity in Korea and India

Beyond the core markets, Korea saw collaborative initiatives involving wearable medical-device developers, adding momentum to the healthcare IoT theme. India recorded restructuring in power-electronics businesses through divestitures of legacy or non-core assets. These moves reflected broader global trends: strengthening exposure to high‑value emerging applications while rationalizing mature or structurally challenged operations.

Sector-Level Dynamics in 2025

Our review of 2025 reveals four strategic axes that shaped Japanese corporate activity. First, technology acquisition in Taiwan and China accelerated, particularly in optical modules, packaging technologies, and semiconductor inspection equipment, as companies sought to reinforce advanced‑manufacturing capabilities. Second, convergence between healthcare and IoT gathered pace in Singapore and Korea, with Japanese firms connecting to new applications through startup partnerships. Third, supply‑chain optimization remained a recurring theme: Vietnam and India saw realignment of manufacturing processes and the simplification of non-core operations. Fourth, the exit from mature segments continued, particularly in Taiwan and China, where several divestitures reflected a clearer commitment to portfolio selection and focus.

Syntax Partners, Inc.