Prime Highlights
- JIC is considering the sale of semiconductor materials company JSR.
- Fujifilm and Mitsubishi Chemical have shown interest in acquiring JSR.
Key Facts
- JSR is a leading producer of semiconductor photoresists.
- JIC acquired JSR in a $6 billion deal nearly two years ago.
Background
According to sources, Japan Investment Corp (JIC), a state-backed investment vehicle, is thinking about selling semiconductor materials manufacturer JSR almost two years after going private in a deal worth around $6 billion.
Fujifilm and Mitsubishi Chemical have reportedly shown interest in acquiring JSR, as strong growth in the artificial intelligence sector continues to increase the value of semiconductor supply chain companies.
JIC had originally planned to use JSR to drive consolidation in Japan’s semiconductor materials industry. However, rising valuations across the chip sector have reportedly encouraged the fund to explore a possible sale under favourable market conditions.
Founded in 1957, JSR is a major producer of photoresists, materials used to transfer circuit patterns onto semiconductor wafers during chip manufacturing. Fujifilm also produces photoresists, while Mitsubishi Chemical supplies chemicals used in their production.
When JIC acquired JSR, the company stated that going private would help it focus on acquisitions and long-term growth without pressure from foreign investors. However, industry observers questioned whether JSR could successfully lead large-scale consolidation in the sector.
Last year, JSR’s new chief executive stated that the company’s immediate priority was improving business performance rather than pursuing acquisitions. The company later returned to profitability, reporting a net profit of 60.7 billion yen on revenue of 400.7 billion yen for the financial year ending in March.
Japan’s semiconductor materials industry has gained significant investor attention amid the global AI boom. Several niche chipmaking firms have seen sharp valuation increases over the past year as demand for AI-related technologies continues to grow worldwide.