(Bloomberg) -- Japanese chip distributor Macnica Holdings Inc. is seeking possible acquisition targets in other parts of Asia, a sign of industry pressures to consolidate.

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Macnica, which sells chips made by the likes of Intel Corp.’s Altera, is eyeing an overseas acquisition to better hold its own against bigger competitors. Scale is becoming important even for distributors, who need to navigate the technological rivalry between the US and China and the resulting export controls and supply chain snarls, according to Macnica President Kazumasa Hara. China, Southeast Asia, India and South Korea are all areas of interest, he said.

“We need to raise our market share as quickly as possible,” Hara said in an interview, adding that Macnica’s market presence remains low in growth regions such as China and Southeast Asia. An acquisition is “one option” and a deal requiring an investment of billions of dollars is “very likely,” he said.

Japan’s biggest chip distributor, Macnica holds an estimated 22% share in a country crowded with more than 20 rivals. In April, Macnica bought one such competitor, Glosel Co., and the sector’s also seen the merger of Ryoyo Electro Corp. and Ryosan Co., but Hara said he isn’t eager for another acquisition at home. The company should be able to hit its market share target of 30% or more in 2030 organically, he said, reflecting growing concentration of business seen in chip distribution elsewhere.

The Yokohama-based company, which often draws comparisons with factory automation provider Keyence Corp., may also conduct acquisitions to expand into other arenas, such as cybersecurity, Hara said. “When you look ahead, that’s one area that will grow,” he said.

The goal is to lower Macnica’s reliance on semiconductors, which account for 90% of its sales. In addition to cybersecurity, it’s exploring arenas that are less capital-intensive than semiconductors, such as self-driving car networks and health care.

Macnica’s stock is down about 40% from a February high, in part due to its exposure to industrial equipment chips in China.

“It’s important to always be on the lookout for cutting-edge technologies to commercialize, just as we did with semiconductors in the past,” Hara said.