– Taiyo Holdings Executes Strategic Investment via Pegasus-Managed CVC Fund, Followed by Successful Business Partnership and Acquisition of LQDX –
Joint Development of Next-Generation Advanced Semiconductor Technology
＜Overview＞
Taiyo Holdings Co., Ltd., a Japanese leader in specialty chemicals and electronic materials, entered into a strategic partnership with California-based startup LQDX in 2022 to co-develop next-generation semiconductor manufacturing technologies. This collaboration aimed to enhance Taiyo’s competitiveness in a rapidly evolving global market by incorporating LQDX’s proprietary innovations into its own product portfolio.
LQDX is a U.S. startup specializing in liquid metal inks and advanced packaging technologies for semiconductor applications. The company originated as a spin-off from SRI International, a world-renowned research institute born out of Stanford University. Backed by a team of accomplished researchers and a robust R&D infrastructure, LQDX has gained industry attention for its groundbreaking technology.
In October 2020, Taiyo Holdings established a joint corporate venture fund with Pegasus Tech Ventures, valued at up to ¥4.5 billion (approx. $30 million), to explore long-term growth opportunities and pursue open innovation initiatives. LQDX was introduced to Taiyo through this fund in 2022, leading to a minority investment. After validating the potential for synergy, Taiyo announced the full acquisition of LQDX’s “Mina” business in May 2024.
＜Challenges and Solutions＞
As semiconductor technology advances at an unprecedented pace, Taiyo recognized that continuing to rely solely on its conventional electronics materials portfolio would not suffice to maintain its market leadership. The need to rapidly adopt and integrate transformative technologies—such as liquid metal inks—became apparent in order to meet the demands of next-generation semiconductor manufacturing.
Introducing these novel materials posed multiple challenges. Beyond the technological hurdles, Taiyo needed to assess the commercial viability and manufacturability of such innovations within its production ecosystem. A flexible, startup-centered collaboration model was identified as the most effective route to address these issues.
The initial minority investment allowed Taiyo to deepen its understanding of LQDX’s proprietary “Mina” technology, which employs liquid metal inks to enable advanced semiconductor packaging processes. Taiyo saw strong potential in combining this technology with its extensive distribution network and manufacturing know-how, particularly in Asia.
During the partnership phase, the companies worked closely to evaluate their joint capabilities. As technical compatibility and commercial feasibility became clear, Taiyo advanced toward acquiring LQDX’s Mina business entirely. This acquisition was finalized in May 2024.
Following the acquisition, Mina’s proprietary liquid metal technology was fully integrated into Taiyo’s global operations. The transaction enabled Taiyo to rapidly expand its product lineup and offer next-generation solutions to its established customer base, particularly in the semiconductor sector.
Post-acquisition performance exceeded expectations. Revenue from the integrated business grew at a faster-than-projected pace, especially across Asia. The acquisition not only strengthened Taiyo’s global competitiveness, but also positioned the company as a frontrunner in the race toward high-performance, miniaturized, and energy-efficient semiconductor materials.
The success of this partnership and acquisition underscores the strategic value of combining the agility and innovation of a startup like LQDX with the global scale and credibility of an industry leader like Taiyo Holdings.
＜References＞
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PR Newswire: “LQDX Divests Aluminum Soldering Business – Mina™ – to Taiyo America Inc.
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LQDX Official Website: “Mina Acquisition Announcement.”
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Taiyo Holdings Official Website: “Notice on the Establishment of a Corporate Venture Fund.”
Note: Currency conversion used for reference = ¥150 per US dollar