Japan to take over global leader in chipmaking compounds for $6 billion

Japan’s government unveiled a $6.3 billion deal to buy out and privatize JSR, taking direct control of the world leader in chipmaking compounds at a time US-Chinese tensions threaten to fragment the $550 billion global semiconductor industry.

Government-backed Japan Investment Corp. plans to offer shareholders ¥4,350 ($30.40) a share in a tender offer around December, the company said Monday in a statement. That’s roughly 35 per cent premium to JSR’s Friday close and works out to as much as ¥903.9 billion, JSR said.

The move could help Tokyo expand control over compounds essential for making advanced semiconductors. Founded in 1957, JSR is the world’s leading maker of photoresists and one of three Japanese companies, along with Shin-Etsu Chemical and Tokyo Ohka Kogyo, that control the global supply of fluorinated polyimide and hydrogen fluoride. 

Those compounds are needed to make semiconductors used in supercomputers, AI-harnessing data centers and missile control systems, not to mention gadgets including Apple.