[News] Mitsui Chemicals Eyes Record $8.2B JSR Acquisition to Expand EUV Materials Business

Japan’s Mitsui Chemicals is reportedly planning to acquire semiconductor materials maker JSR from the state-backed Japan Investment Corp. (JIC) in a deal valued at more than JPY 1.3 trillion (US$8.2 billion), according to Nikkei, citing sources. If completed, the transaction would mark the largest acquisition in Japan’s chemical industry.

Responding to the report, Mitsui Chemicals said the information was not based on an official company announcement. However, it acknowledged that it was exploring various options, including a potential acquisition of JSR, to enhance corporate value, emphasizing that no decision had been made.

JIC acquired JSR for more than JPY 1 trillion in 2024 and subsequently took the company private. Since then, the fund has been divesting unprofitable businesses to sharpen JSR’s focus on semiconductor materials, Nikkei reports. With the restructuring progressing, JIC has been weighing several options, including a sale or potential relisting.

Mitsui–JSR Deal Could Reshape Chip Materials Market, Raise Supply Concerns

Beyond the scale of the deal, the acquisition could significantly strengthen Mitsui Chemicals’ position in advanced semiconductor materials. According to Economic Daily News, the potential acquisition could reshape the global semiconductor photoresist market, where JSR has long been a leading supplier alongside Tokyo Ohka Kogyo (TOK) and Sumitomo Chemical. Industry observers believe that acquiring JSR, which holds an estimated 30% market share and a strong position in advanced EUV photoresists, could propel Mitsui Chemicals into the top tier of Japan’s semiconductor lithography materials suppliers.

Mitsui Chemicals already has a strong presence in specialty chemicals, substrates, and advanced packaging materials. Combining these businesses with JSR’s front-end photoresist operations could give Mitsui a broader portfolio spanning front-end lithography materials and back-end advanced packaging films and resins, Economic Daily News highlights.

The two companies also have complementary businesses in EUV lithography. As noted by Postation, Mitsui manufactures EUV pellicles under license from ASML, while JSR supplies advanced photoresists, with both serving overlapping customers in the lithography process.

Notably, according to Economic Daily News, the potential consolidation could raise concerns about increased supplier concentration for chipmakers such as TSMC and Intel. The report also notes that photoresist qualification for advanced processes, including 3nm, 2nm, and future high-numerical-aperture (High-NA) EUV lithography, is extremely stringent, making switching suppliers particularly costly.

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(Photo credit: JSR)