Mitsui Chemicals, in partnership with the Development Bank of Japan (DBJ), has signed a share purchase agreement to acquire semiconductor materials leader JSR Corporation in a landmark deal valued at 1.84 trillion yen (approx. $11.6 billion). Marking one of the largest acquisitions in Japan's chemical industry, this strategic move accelerates Mitsui’s business transformation to scale its global semiconductor footprint, boost profitability, and strengthen market competitiveness.
The company’s board approved the transaction on November 9, with Mitsui Chemicals entering into an agreement with investment funds managed and operated by JIC Capital (JICC) to acquire shares in JSR, a leading developer and manufacturer of advanced semiconductor materials, including photoresists.
The transaction will make JSR a consolidated subsidiary of Mitsui Chemicals, with the company aiming to complete the deal in the second half of the fiscal year ending March 2028, subject to regulatory approvals and other conditions.
The move marks a significant step in Mitsui Chemicals’ ambition to establish itself as a global specialty chemicals powerhouse, with advanced semiconductor materials emerging as a key growth engine.
To finance the transaction, Mitsui Chemicals also plans a shelf registration for the issuance of new common shares and has signed a shareholders’ agreement with Development Bank of Japan (DBJ), which will jointly invest in the transaction. JSR and four of its affiliated companies will become specified subsidiaries of Mitsui Chemicals following completion.
The acquisition is central to Mitsui Chemicals’ strategy to accelerate its transformation towards high-growth, high-profitability specialty chemicals businesses.
JSR brings a formidable semiconductor materials portfolio, including advanced photoresists with world-class competitiveness, a strong customer base across semiconductor and optical markets, leading product lines, advanced technological capabilities and a well-established global footprint.
Mitsui Chemicals believes combining the two companies will create one of Japan’s leading semiconductor materials businesses by sales, strengthening its market presence and opening up significant growth opportunities.
Following completion, JSR will become a core business within Mitsui Chemicals’ ICT Solutions domain. The company plans to channel substantial management resources into research and development, talent and facilities to drive technological innovation and long-term business growth.
The companies will also combine their customer networks, product portfolios and technological strengths to accelerate innovation across semiconductor manufacturing processes.
These complementary businesses include Mitsui Chemicals’ MITSUI PELLICLE and JSR’s advanced photoresists in front-end semiconductor processes, alongside Mitsui Chemicals’ ICROS Tape and JSR’s thick-film resists in back-end processes.
The combined capabilities are expected to strengthen development in cutting-edge technologies, accelerate new product development and reinforce global manufacturing and supply networks.
Mitsui Chemicals will also pursue operational efficiencies and rationalise overlapping functions as it optimises the Group’s business structure.
The company is targeting approximately ¥40 billion in additional annual profit by fiscal 2035 through growth synergies and cost efficiencies generated by the integration.
The JSR transaction is also triggering a broader overhaul of Mitsui Chemicals’ business portfolio, including a significant revision of its proposed split-off of the Basic & Green Materials (B&GM) business.
In May 2025, the company announced that it would begin examining a split-off of B&GM to pursue alliances, integration and restructuring with other companies.
It has now decided to expand the scope of businesses under consideration to include its Mobility Solutions business.
The expanded plan aims to integrate upstream petrochemical operations with downstream functional polymer businesses, creating a more resilient and independent business structure.
Mitsui Chemicals ultimately wants these businesses to evolve into a polymer science company capable of supporting Japanese industry while building a strong international presence.
The company sees the restructuring as a critical step in strengthening the independence and resilience of both sides of its Two-Pillar Strategy: specialty chemicals and basic and green materials.
The moves form part of Mitsui Chemicals’ long-term management strategy, VISION 2030, launched in 2021.
Under the plan, the company is pursuing a Two-Pillar Strategy, with specialty chemicals businesses — Life & Healthcare Solutions, Mobility Solutions and ICT Solutions — forming one pillar, and Basic & Green Materials forming the other.
Its priority is to concentrate resources on high-growth areas, particularly ICT Solutions, while expanding stable-growth opportunities in Life & Healthcare Solutions.
The JSR transaction is expected to accelerate that shift, positioning semiconductor materials at the heart of the company’s next phase of expansion.
Mitsui Chemicals also plans to pursue further restructuring, partnerships and alliances in specialty businesses, particularly in the semiconductor sector, as it seeks to build a Japan-originated global specialty chemicals company capable of competing head-on with international players.
The company is also looking to streamline its broader specialty chemicals portfolio, including businesses and affiliates that have failed to meet expectations.
Alongside becoming more asset-light, it plans to improve capital efficiency through tighter cash conversion cycles (CCC), the sale of strategic shareholdings and other measures.
Mitsui Chemicals expects the combination of its capital-efficiency initiatives, portfolio restructuring and JSR-related measures to generate benefits representing a business value of at least ¥350 billion.
