{"id":1956942,"date":"2023-06-26T07:14:02","date_gmt":"2023-06-26T11:14:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/japan-backed-fund-to-buy-chip-materials-maker-jsr-for-6-4-billion\/"},"modified":"2023-06-26T07:16:33","modified_gmt":"2023-06-26T11:16:33","slug":"japan-backed-fund-to-buy-chip-materials-maker-jsr-for-6-4-billion","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/japan-backed-fund-to-buy-chip-materials-maker-jsr-for-6-4-billion\/","title":{"rendered":"Japan&#8217;s fund acquires JSR, a chip materials manufacturer, for $6.4 billion."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjapan-backed-fund-to-buy-chip-materials-maker-jsr-for-6-4-billion%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1956942&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Sam Nussey and Tim Kelly<\/p>\n<p><strong>TOKYO (Reuters) &#8211;<\/strong> Japan stepped up efforts to bolster its chip industry on Monday, with a government-backed fund agreeing to buy semiconductor materials maker JSR Corp for about 909.3 billion yen ($6.4 billion).<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The move by Japan Investment Corp (JIC), overseen by the powerful trade ministry, is the latest in a series of increasingly muscular government steps to try to regain Japan\u2019s lead in advanced chip production and maintain its edge as a maker of materials and tools used in their manufacture.<\/p>\n<p>JIC plans to launch a tender offer in late December offering 4,350 yen per share, a 35% premium to Friday\u2019s closing price, to take JSR private. Mizuho Bank and the government-backed Development Bank of Japan (DBJ) will provide financing.<\/p>\n<p>JSR shares rose by 22%, their daily limit, ahead of the official announcement. The news raised expectations of sector consolidation, driving shares in peer Tokyo Ohka Kogyo 10% higher, while Sumitomo Chemical and Shin-Etsu Chemical each rose 2%.<\/p>\n<p>\u201cCapabilities here are superb, but there are a lot of us and all of us are spending money redundantly, so we feel the opportunities for efficiency gains are significant,\u201d JSR CEO Eric Johnson told a news conference. <\/p>\n<p>Johnson, a rare foreign-born head of a Japanese company, said he aimed to relist the company in five to seven years. <\/p>\n<p>The deal comes amid deepening tensions between the United States and China as President Joe Biden\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/japan-backed-fund-to-buy-chip-materials-maker-jsr-for-6-4-billion\/\" title=\"Japan's fund acquires JSR, a chip materials manufacturer, for .4 billion.\">administration builds domestic chip manufacturing capacity<\/a>. Japan and the Netherlands have joined the U.S. in restricting exports of chipmaking tools to China. <\/p>\n<p>JSR is a top supplier of photoresists, which are light-sensitive chemicals used to etch patterns on wafers. <\/p>\n<p>\u201cJapan has a monopoly, with China and others yet to develop this technology,\u201d said Kazuhiro Sugiyama, consulting director at research firm Omdia. <\/p>\n<p>HEAVY INVESTMENT<\/p>\n<p>JSR approached JIC about potential backing, an industry ministry official said. <\/p>\n<p>JSR needs to invest heavily in production capacity and the development of materials for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-hawks-are-awfully-sheepish-on-china\/\" title=\"The Hawks Are Awfully Sheepish on China\">advanced chip manufacturing<\/a>, said the official, who declined to be named because they are not permitted to speak with media.<\/p>\n<p>While Japan has a long and mixed record of intervening to save floundering industrial players, the move to buy a profitable company that has already undergone restructuring risks criticism for potential overreach.<\/p>\n<p>JIC said last November it had expanded the size of its buyout fund by 4.5 times to 900 billion yen.  <\/p>\n<p>\u201cJIC is starting here. It would surprise me quite a bit if that is where they stopped,\u201d Travis Lundy of Quiddity Advisors wrote in a note on Smartkarma. <\/p>\n<p>JSR, which was set up in 1957 as a government-backed producer of synthetic rubber, reported a 20% jump in sales to 408.9 billion yen in the year ended March, while operating profit declined 33% to 29.4 billion yen. <\/p>\n<p>JSR and Shin-Etsu have market shares of 39% and 37%, respectively, in the ArF photoresist market, according to Nomura Securities, with JSR\u2019s clients including Samsung Electronics, Taiwan Semiconductor Manufacturing Co and Micron Technology. <\/p>\n<p>In the advanced extreme ultraviolet (EUV) photoresist market, Tokyo Ohka Kogyo is adding share from top clients in South Korea and Taiwan, Nomura said.<\/p>\n<p>Shares in JSR had already gained 25% year-to-date at Friday\u2019s market close. Activist investor ValueAct Capital, which said it supports the deal, is a major shareholder and has an executive on the board.<\/p>\n<p>($1 = 143.1200 yen)<\/p>\n<p> (Reporting by Sam Nussey, Tim Kelly, Miho Uranaka, Makiko Yamazaki and Noriyuki Hirata; Editing by Muralikumar Anantharaman and Mark Potter)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/japan-backed-fund-to-buy\/attachment\/file-photo-illustration-picture-of-semiconductor-chips-on-a-circuit\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>After India Prime Minister Narendra Modi and President Biden meet to strengthen ties, Barack Obama makes some very polarizing comments on the state of India during an interview on CNN<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>This week has been filled with major headlines in the U.S. and around the world. One America\u2019s Rachel Acenas brings us more in our Week in Review.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>The massive search for a missing sub with five people on board comes to an end.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>More GOP candidates are entering the 2024 presidential election, with many speculating why now? One America\u2019s Monica Paige reports.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Nick Carey and Aby Jose Koilparambil (Reuters) &#8211;<\/strong> Aston Martin has reached a deal that will give U.S. electric vehicle (EV) maker\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Sam Nussey and Tim Kelly TOKYO (Reuters) &#8211;<\/strong> Japan stepped up efforts to bolster its chip industry on Monday, with a government-backed\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Jane Lanhee Lee and Nathan Frandino MOUNTAIN VIEW, California (Reuters) \u2013<\/strong> Google parent Alphabet has already tried and failed to bring\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>HONG KONG (Reuters) \u2013<\/strong> Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 2.53 million Hong Kong-listed shares of electric\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Japan&#8217;s government-backed fund, Japan Investment Corp (JIC), has agreed to purchase semiconductor materials maker JSR Corp for approximately $6.4 billion. This move is part of Japan&#8217;s efforts to strengthen its chip industry and is overseen by the trade ministry.<\/p>\n","protected":false},"author":66,"featured_media":1956943,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1956942","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1956942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1956942"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1956942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1956943"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1956942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1956942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1956942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}