What Display Daily Thinks: The bailout of JSR Corp has significance because while it is part of a grander plan by Japan to solidify its semiconductor industry, it is also impactful on the display market. JSR’s Shanghai Technical Center (STC) gives it a foothold in both Chinese and Taiwanese markets for display materials.
Is it wrong to equate the display industry with the semiconductor industry? Where they are not merged, they will be soon enough. Any investment profile in semiconductors, particularly as part of some bigger strategic initiative, has implications for displays. With China, Korea, and Japan heavily invested in bolstering their local semiconductor industries, it’s going to make for a very competitive display industry at a time when the selling environment is very tough.
JSR Corp. Buyout by Japan Investment Corp. Poised to Stir Materials Sector
Japan Investment Corp (JIC) is acquiring JSR Corp for $6.3 billion. This strategy departs from past bailouts, targeting a prospering company known for its vital role in display manufacturing and the semiconductor sector.
JSR’s primary products include photoresists, essential for extreme ultraviolet photolithography, a crucial process in chip manufacturing. The firm’s continued growth and profitability have distinguished it within the industry, raising its value for investment.
JIC’s purchase signifies a shift in policy from reviving faltering sectors to fortifying leading enterprises. This move is part of a broader effort to boost the semiconductor industry for both national security and economic advancement, such as the recent collaboration with Taiwan Semiconductor Manufacturing Co. and Sony to build a factory in Kumamoto.
The purchase has sparked concerns due to the $6.3 billion price tag. JSR would need to significantly increase its profit to align with industry peers and attract investors for a potential IPO planned for the end of the decade.
