Japanese Government Fund Considers Selling Chip Material Giant JSR

According to a Reuters report, Japan Investment Corporation (JIC), a government-backed investment fund in Japan, is considering the sale of semiconductor materials manufacturer JSR. Two years ago, JIC privatized JSR for about $6 billion, and now the AI boom has driven up the valuations of chip supply chain enterprises, prompting JIC to seek a profit exit through this window.

Sources close to the matter have revealed that both Fujifilm and Mitsubishi Chemical have expressed their intent to acquire. JSR is a leading global manufacturer of photoresists, which are key materials for transferring circuit patterns onto semiconductor wafers. Fujifilm itself also produces photoresists, while Mitsubishi Chemical supplies upstream chemical raw materials for photoresists, making both companies' businesses highly synergistic with JSR.

JIC, JSR, Fujifilm, and Mitsubishi Chemical did not immediately respond to requests for comment.

From Industry Integration to Profitable Exit

The original intention of JIC to acquire JSR was to use it as a platform to promote the consolidation of Japan's semiconductor materials industry. JSR also indicated that privatization would relieve the company of the burden of managing overseas investors, allowing for freer advancement in mergers and acquisitions.

However, things have not unfolded as expected. The newly appointed CEO of JSR stated last year that the company's immediate priority is to restore operational performance, and the conditions for initiating acquisitions are not yet present. There are also doubts within the industry about JSR's ability to complete mergers and acquisitions that truly reshape the materials industry landscape.

Now, as the AI investment wave sweeps the globe, the valuations of chip supply chain enterprises are rising. According to insiders, JIC's strategy has shifted from promoting integration to timing sales.

JSR's Recovery and Soaring Industry Valuations

JSR, established in 1957, recorded a net profit of 60.7 billion yen (approximately $380 million) in the fiscal year ending March 2026, with revenues reaching 400.7 billion yen, having previously fallen into a loss due to the drag of its life sciences business.

Japan has a large number of enterprises producing key chip materials and equipment, many of which have seen their valuations soar significantly in the AI boom. Taking Tokyo Ohka Kogyo, another photoresist manufacturer, as an example, its stock price has tripled in the past year, with a market value now reaching 1.4 trillion yen, providing a valuation reference for potential transactions.

JIC, regulated by Japan's Ministry of Economy, Trade and Industry, was established in 2018 with the positioning of enhancing the competitiveness of Japanese industries through investments. In addition to JSR, JIC has also partnered with private equity giant KKR to invest in the medical equipment manufacturer Topcon. If successful in selling JSR this time, it would be one of the largest exit cases since JIC's establishment.