TOKYO -- Sumitomo Electric Industries has reached a basic agreement to acquire Sumitomo Bakelite's flexible printed circuit manufacturing subsidiary in Vietnam.

Under terms of the deal, Sumitomo Electric will acquire Sumitomo Bakelite Vietnam Co., Ltd.

Sumitomo Electric said demand for flex circuits is expected to grow due to global demand for smartphones, tablet computers, flat-screen TVs and video game consoles.

Sumitomo Bakelite Vietnam was founded in 2001 and had sales of $65 million for the year ended Dec. 31, 2010, the last full reporting period.

Sumitomo Bakelite is the result of a 1955 merger between Nippon Bakelite and Sumitomo Synthetic Resin Industries. It is not related to Sumitomo Electric.