Japan plans to ‘nationalize’ chip materials leader JSR

News | June 27, 2023

By Peter Clarke

Japan wafer Materials & processes

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JSR Corp. (Tokyo, Japan) has revealed a plan for government-backed Japan Investment Corp. to buy the semiconductor materials company for about US$6.3 billion.

Japan Investment Corp. plans to offer shareholders ¥4,350 ($30.40) per share in a tender offer in December, JSR said in a statement. That represents a 35 percent premium over JSR’s share price at close on Friday June 23.

JSR is the world’s leading maker of photoresists and one of three Japanese companies, along with Shin-Etsu Chemical and Tokyo Ohka Kogyo, that control the global supply of other essential chemicals for chip manufacturing fluorinated polyimide and hydrogen fluoride.

At a time of increased tension between the US and China over chip design and manufacturing Japan’s move will increase its security and leverage in the industry. Japan has recently initiated a project to develop leading-edge semiconductor capability by the end of the decade (see Consortium forms Rapidus to get Japan back into chip race at 2nm)

Eric Johnson, CEO of JSR, said that the Japanese materials sector needed to consolidate and pool resources to develop new technologies as competition intensifies among clients.

JIC said that government ownership would allow JSR to make medium- and long-term investments without concern for the short-term impact on financial performance.

The move will protect JSR from potential takeover while also underlining its essential position in the chip manufacturing flow. Monopoly EUV lithography equipment supplier ASML Holding NV has played a similar role in maintaining European revelance in semiconductors and encouraging inward investment there from Intel and TSMC.

JSR could relist in about five to seven year’s time, Johnson is quoting as saying.