Japan-Backed Fund, to Buy, Chipmaker JSR. On June 26, Japan announced plans to bolster its chip industry with a government-supported fund to purchase semiconductor materials producer JSR Corp.
The $6.4 billion move by Japan Investment Corp (JIC) will be overseen by the country's powerful trade ministry.
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Reuters reports that the move is the latest by the government to regain Japan's dominance in advanced chip production.
In late December, JIC reportedly plans to offer 4,350 yen per share ($30) to take JSR private.
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Financing for the massive deal will be provided by Mizuho Bank and the government-supported Development Bank of Japan (DBJ).
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Ahead of the official announcement, shares in JSR reached their daily limit, rising by 22%.
Reuters reports that the news also increased expectations of sector consolidation, which drove shares in Tokyo Ohka Kogyo, Sumitomo Chemical and Shin-Etsu Chemical up.
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Capabilities 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, Eric Johnson, JSR CEO, via Reuters.
News of the deal comes as the United States looks to increase domestic chip manufacturing capacity amid deepening tensions with China.
News of the deal comes as the United States looks to increase domestic chip manufacturing capacity amid deepening tensions with China.
Reuters reports that both the Netherlands and Japan have joined the U.S. in placing restrictions on the export of chipmaking tools to China
