The state-backed fund proposed the acquisition of JSR, which plays a key role in semiconductor manufacturing. The USD 6.2 billion transaction represents a significant premium of approximately 35% to JSR's share price prior to the announcement of the offer.

This strategic initiative has the potential to enable Tokyo to strengthen its control over critical compounds necessary for the production of advanced semiconductors. Founded in 1957, JSR is the world's leading manufacturer of photoresists. In addition, it is one of three Japanese companies, along with Shin-Etsu Chemical and Tokyo Ohka Kogyo, that dominate the global supply of fluorinated polyimide and hydrogen fluoride. These compounds are indispensable in the production of semiconductors, which find applications in a variety of high-tech systems, including supercomputers, AI-driven data centres, missile guidance systems and other electronic devices.

Japan is actively trying to revive its semiconductor industry, a sector it once dominated. Like other economies, Japan provides subsidies to chip manufacturers to support the construction of new semiconductor plants. In April, the Japanese government issued a statement outlining its goal of tripling sales of semiconductor, component and materials manufacturers. The target is to reach JPY 15 trillion (USD 113 billion) in sales by 2030, primarily through increased investment in the development of the sector. Government data shows that in 2020, sales of chip, component and material manufacturers in Japan were approximately JPY 5 trillion, representing around 10% of the global market share.

The largest stake in JSR is held by ValueAct, a major US activist fund, which owns approximately 9% of the company. ValueAct previously held large positions in other major companies such as Olympus and Seven & i Holdings.