Mitsubishi Corp mulls bid for Fujitsu's Shinko electric chip unit

01 Oct 2023

Mitsubishi Corp is contemplating bidding for Fujitsu's chip packaging unit, Shinko Electric Industries. Japan's leading trading house is considering an entry into semiconductor manufacturing. Mitsubishi, which is 8.3% owned by Warren Buffett's Berkshire Hathaway, has formed a team to explore the possibility of delving into the back-end manufacturing process. This process involves mounting chips on frames, connecting wires, and packaging.

Fujitsu has put its 50% stake in Shinko Electric, valued at approximately $2.6 billion in current market prices, up for sale. This move has attracted the attention of global buyout firms Bain Capital, KKR, Apollo Global Management, as well as the government-backed Japan Investment Corp (JIC).

Mitsubishi intends to submit a joint bid with one of the potential buyers. However, these discussions are in the preliminary stages, and Mitsubishi has not yet finalized a partner.