The Japanese government intends to buy out the leading manufacturer of semiconductor materials – JSR

Japanese semiconductor manufacturer JSR Corporation has received a buyout offer from Japan Investment Corp., a state-owned investment fund. (JIC), which is under the direct control of the Ministry of Commerce of the country. JIC is willing to pay $7 billion for JSR, well above JSR’s market capitalization of $4.73 billion as of Friday evening. The offer will be reviewed by JSR today at a board meeting. report in company.

JSR is the world’s largest manufacturer of photoresists (light-sensitive polymeric materials/films that are necessary for the production of semiconductors). The company controls about 30% of the world market for photoresists, and with two other Japanese companies, Shin-Etsu and Tokyo Ohka Kogyo, almost completely controls the production of fluorinated polyimide and hydrogen fluoride, the most important components for the production of displays and semiconductors.

According to experts interviewed Bloomberg, the offer to purchase such a company by the state investment fund reflects the desire of the Japanese authorities to strengthen the country’s national economic security by stimulating the production of materials that will allow it to be more competitive in this area. According to SMBC Nikko analyst Go Miyamoto, “semiconductor manufacturing is becoming more of a national policy issue.” The analyst also believes that if JSR were to be bought out, “it would make it easier for JSR to invest in photoresistors and other conductive materials and possibly further enhance its technical and price competitiveness.”

JSR shares reacted to the news of a potential takeover by skyrocketing 22.22%, hitting a daily limit before trading was suspended. This is the sharpest rise in JSR shares since 1999. Since the beginning of the year, JSR shares are up nearly 47%. Shares of the company’s main competitor, Tokyo Ohga Kogyo, rose 10%.

Alena Miklashevskaya