Mitsui Chemicals said on November 9 that it will acquire JSR, a major semiconductor materials maker based in Tokyo's Minato Ward, for ¥1.84 trillion including interest-bearing debt, a bet on chip materials to revive growth.
The acquisition strengthens the ICT business, which handles semiconductor and electronic component materials. Mitsui Chemicals aims to improve profitability and establish a presence in the semiconductor market.
JSR holds a world-leading share of photoresists, the materials used to form circuits on semiconductors. The state-backed Japan Investment Corporation bought JSR in 2024 and has worked to strengthen its semiconductor materials business and improve earnings.
"This is not a simple M&A," President Satoshi Ichimura said at a news conference the same day, explaining why the company spent so much.
A shift away from flat growth
Mitsui Chemicals has changed its business to meet the needs of the times. Its predecessor, Mitsui Mining, began chemical operations in 1912, starting with coal chemicals to make fertilizer amid food shortages.
As Japanese industry developed, the company grew into Japan's first petrochemical maker. It expanded into materials for automobiles and into life and healthcare.
"Growth has slowed recently. The company as a whole has been flat," Ichimura said, voicing alarm.
To make the business more resilient, he has set his sights on the semiconductor market, where high growth is expected.
“The semiconductor market can be expected to grow more than 10 percent a year on average. AI data centers have taken hold as social infrastructure, and AI has spread into daily life and industry. AI has become indispensable for solving social issues. This is irreversible, and we cannot go back to a world without AI.”Satoshi Ichimura, President, Mitsui Chemicals
Ichimura said the growth of AI, which underpins daily life, is not short-term and will certainly continue for three to five years. That, he said, is why the company is focusing on semiconductors.