Prices are rising across Japan, but firms in the chipmaking gear sector, particularly Marumae, are seeking ways to capitalize on the AI boom, which has fueled significant spending on essential hardware like Nvidia chips. Despite the growth in demand, many Japanese manufacturers of vacuum components crucial for chip tools are struggling to benefit due to competition among numerous niche firms in a market valued at less than ¥100 billion (US$680 million). Marumae’s president, Toshikazu Maeda, emphasizes the need for consolidation, highlighted by their recent acquisition of KM Aluminum for ¥9 billion. However, further mergers and acquisitions in Japan’s fragmented market face structural barriers, with Maeda noting the urgency for growth through potential synergies. Additionally, Marumae is exploring expansion into profitable sectors such as aerospace and defense. The company is poised for future opportunities as they navigate the complexities of the chip tool components market.
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