Japan Investment Corp (JIC), a state-backed fund, is evaluating the sale of JSR, a prominent manufacturer of chipmaking materials. This consideration comes two years after JIC took JSR private in a $6 billion deal, according to sources familiar with the matter.
Potential Buyers and Market Conditions
Fujifilm and Mitsubishi Chemical have shown interest in acquiring JSR. Both companies have a stake in the chipmaking materials sector, with Fujifilm also producing photoresists and Mitsubishi Chemical supplying chemicals used in these products. The sources, who requested anonymity due to the non-public nature of the information, indicated that JIC is looking to capitalize on the current favorable market conditions driven by substantial investments in artificial intelligence.
JSR, founded in 1957, is a leader in manufacturing photoresists, essential for transferring circuit patterns onto semiconductor wafers. The company returned to profitability with a net profit of 60.7 billion yen ($380 million) on revenue of 400.7 billion yen in the year ending March, after overcoming challenges in its life sciences division.
Strategic Shifts and Industry Dynamics
Initially, JSR’s transition to a private entity was aimed at freeing it from managing foreign investors and enabling strategic acquisitions to consolidate the materials sector. However, industry insiders have questioned the feasibility of JSR achieving significant acquisitions under its new structure. The current CEO has emphasized restoring business performance over pursuing new acquisitions.
Japan’s chipmaking materials sector has seen a surge in valuations amid the AI boom, with companies like Tokyo Ohka Kogyo experiencing a tripling of their stock value over the past year. JIC, established in 2018 under the oversight of the trade ministry, aims to enhance Japan’s competitiveness by investing in strategic sectors, including its involvement with medical equipment maker Topcon alongside private equity firm KKR.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
