Japan Fund Weighs Sale of Chip Materials Maker JSR

Japan Investment Corp (JIC), a state-backed fund, is reportedly exploring the sale of JSR, a prominent manufacturer of chipmaking materials. This potential divestment comes just two years after JIC took the company private in a $6 billion deal.

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Japan Investment Corp (JIC) is considering selling JSR, two people familiar with the matter said, two years after it took the maker of chipmaking materials private in a $6 billion deal.

Sources familiar with the matter indicate that both Fujifilm and Mitsubishi Chemical have shown interest in acquiring JSR. The timing of this consideration aligns with a surge in valuations for companies within the chip supply chain, largely fueled by massive investments in artificial intelligence.

JIC, established in 2018 and overseen by Japan's trade ministry, had initially intended to use JSR to drive consolidation within the materials sector. However, buoyant market conditions now present an opportunity for JIC to exit its investment profitably.

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Fujifilm and Mitsubishi Chemical have expressed interest in acquiring the company.

JSR, founded in 1957, is a key producer of photoresists, essential components for semiconductor manufacturing. While Fujifilm also produces photoresists, Mitsubishi Chemical manufactures the chemicals used in their production. JSR's acquisition was intended to facilitate its pursuit of strategic deals, though some industry observers questioned its ability to reshape the materials sector. The company reported a net profit of 60.7 billion yen ($380 million) in the year ended March, returning to profitability after a previous dip attributed to its life sciences business.

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JIC - which had aimed to use JSR to drive industry consolidation in the materials sector - is now looking at taking advantage of those buoyant market conditions to sell.