Mitsui Chemicals Acquires JSR, a Chip Materials Manufacturer, for $11.6 Billion
Mitsui Chemicals acquires JSR for $11.6 billion in Japan's largest chemical sector acquisition to consolidate semiconductor materials.
09/11/2026
Accounting, Finance & Budgeting
Mitsui Chemicals has acquired chipmaking materials maker JSR from the Japan Investment Corp for 1.84 trillion yen ($11.61 billion), supported by the Development Bank of Japan.
This acquisition is the largest in Japan's chemicals sector, likely transforming the chip supply chain amid government competitiveness efforts. It exceeds Showa Denki's $4.55 billion acquisition of Hitachi Chemical in 2020. Mitsui Chemicals' purchase of JSR aims to bolster its semiconductor materials business, though concerns arise regarding the acquisition's strategic merits and potential debt implications.
Notably, CEO Satoshi Ichimura emphasised that the deal transcends merely bolstering their chip materials sector; it is a strategic initiative aimed at accelerating the transformation of their overall portfolio, as articulated during a press conference.
Mitsui Chemicals Stock Drops on JSR Acquisition News
Mitsui Chemicals plans to raise 150 billion yen by selling shares to finance a transaction, alongside taking a bridge loan of 1.64 trillion yen, which will be partially repaid through the equity raise. The company will also secure additional funds via bank loans, debt issuance, and mezzanine financing.
Moreover, the Development Bank of Japan (DBJ) is set to invest 200 billion yen, converting its stake into non-voting preferred shares. Following the announcement of its acquisition of JSR, Mitsui Chemicals' shares fell by 8.5%, continuing a downward trend noted since last week.
According to LSEG data from Friday's closing price, Mitsui Chemicals has a market capitalisation of 664.6 billion yen. In 2024, JIC, which operates under Japan's finance ministry, purchased JSR for 900 billion yen with the intention of consolidating the semiconductor materials sector. However, the fund is now selling JSR to a domestic chemical major, capitalising on the increased valuation of chip-related companies driven by the AI boom.
As stated by CEO of JIC Capital, Shogo Ikeuchi, the companies possess varied strengths in materials; however, merely having access to these materials does not guarantee the immediate realisation of substantial synergies. He stressed that by harnessing each other's technology, talent, and business foundations, they could potentially generate significant new growth opportunities.
Mitsui Chemicals Plans JSR Asset Sales Post-Acquisition
Mitsui Chemicals intends to divest JSR's life sciences unit and other non-core businesses to enhance JSR's value, with the goal of achieving a stable financial position within three years.
Furthermore, JSR produces photoresists essential for transferring circuit patterns onto semiconductor wafers. Mitsui Chemicals is focused on expanding its chip materials sector, aiming to generate an additional annual profit of 40 billion yen from the JSR acquisition.
Eventually, Ikeuchi indicated that seven or eight potential buyers were involved in discussions since spring regarding the sale of JSR, a move first reported by Reuters in May. He underlined the importance of selecting a buyer capable of establishing a semiconductor materials platform that would support Japan's needs over the next five to ten years.