Japan Investment Corporation, a fund backed by the Japanese government, has proposed a $6.3 billion offer to acquire materials company JSR Corporation. JSR is known as a major component of the semiconductor supply chain, and this acquisition is clearly a move by the government of Japan to secure its place in chip fabrication.
Speaking to CNBC, Takshashila Institution Chairperson of the high tech geopolitics program Pranay Kotasthane said "Japan wants to double down on its comparative advantage in materials needed for semiconductor manufacturing." With the United States passing increasingly restrictive semiconductor equipment and chip export policies to China last year, Japan is certainly in a good position to gain from their neighboring country's pain.
JSR is one of the leading global suppliers of light-sensitive materials called photoresists that are used in the semiconductor manufacturing process. Earlier this year, the United States and Japan entered into an EV battery minerals deal, and today's news of the JSR acquisition is a sign that Japan intends to maintain its standing as a nation that builds things.
$6.3 billion is certainly a lot of money, and it is a 35% premium to JSR stock's (4185) closing price on Friday. It's safe to say that we should keep the Japan Investment Corporation on our radar going forward.