Mitsui Chemicals to take over chip linchpin JSR for $12 billion
The deal would further a government-backed effort to consolidate Japan's fragmented semiconductor-materials industry.
Mitsui Chemicals has agreed to purchase semiconductor materials firm JSR for $12 billion, with backing from Japan's Development Bank of Japan. The acquisition aims to bolster Mitsui's position in a crucial component of advanced chip manufacturing. DBJ will invest ¥200 billion in cash for a stake that will be exchanged for non-voting preferred shares.
JSR, a key supplier of photoresists for advanced chip production, would bolster Japan's semiconductor-materials consolidation efforts. The semiconductor industry remains vulnerable to foreign takeovers due to the concentration of key suppliers in the country. Mitsui Chemicals' share price fell by up to 15% in Tokyo following the news.
JSR provides light-sensitive materials used in advanced lithography machines to create fine circuits on silicon wafers. Major customers include Taiwan Semiconductor Manufacturing, Intel, and Samsung Electronics. JSR had been a private entity until two years ago when JIC took it out of public circulation. In September, JSR was reportedly considering buyout offers from both Mitsui Chemicals and Mitsubishi Chemical Group.
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