State-backed fund Japan Investment Corp. will acquire semiconductor material maker JSR Corp. for about 900 billion yen ($6.3 billion), JSR said Monday, as part of efforts to strengthen the country's chip supply chain.
The acquisition is aimed at accelerating growth at one of the leading producers of photoresists, a material crucial for chip production, as semiconductors have increasingly taken on strategic importance to ensure economic security and prosperity in the age of digitalization.
JIC intends to launch a tender offer in December for JSR, offering 4,350 yen per share, and take the chip material company private, JSR said.
The move comes as the Japanese government is trying to ensure a stable supply of chips amid the escalating technological rivalry between the United States and China over semiconductors.
Japan has persuaded Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, to build a factory in the country.
It has also decided to offer sizable subsidies to domestic chip venture Rapidus Corp., set up last year by eight major Japanese companies including Toyota Motor Corp. and Sony Group Corp.