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Japanese chip materials maker Resonac plans to buy stake in photoresist JSR

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Update time : 2024-01-23 15:22:19
        Resonac CEO Hidehito Takahashi is gearing up for a new round of consolidation in Japan's fragmented chip materials industry and said the chemical maker may make a bid to buy a stake in key company JSR.
 
 
        Hidehito Takahashi said JIC's $6 billion acquisition of JSR, the world's largest photoresist maker, would facilitate much-needed change in Japan's supply chain, and that Resonac, the chemicals group formed by Showa Denko's 2020 acquisition of larger Hitachi Chemical, is considering how it might play a role in JIC. chemicals group, is considering how it can play an active role in JSR's future.
        "I believe we are the most logical partner for JSR," Hidehito Takahashi said.
         A group of little-known Japanese companies dominate certain key materials, such as photoresists and mask blanks, that are integral to semiconductor manufacturing. But development costs are climbing as customers demand higher performance per wafer. 
        Hidehito Takahashi said the industry needs to consolidate to remain competitive with overseas rivals. "Semiconductor materials is one of the areas where Japan can keep winning on the global stage. It makes no sense for the industry to remain fragmented or for executives to cling to their small fiefdoms." 
        Hidehito Takahashi helped create Resonac by raising money for a 1 trillion yen ($6.9 billion) acquisition at a time when Showa Denko's market capitalization was less than half that figure. The company makes materials such as silicon wafer polishing pastes and etching gases and supplies chipmakers such as TSMC, Infineon and Rohm. 
        Hidehito Takahashi said its dream is to create a chip materials company with annual revenue of more than 1 trillion yen, EBITDA margin of 20% or more, and 3M, DuPont and other global giants alongside. 
        Hidehito Takahashi said this year's profit from Resonac's chip materials business will be on par with its 2022 results, when the business posted record sales of 427 billion yen. The increasingly widespread use of artificial intelligence (AI) is driving demand for more complex semiconductors such as stacked chips, which is helpful to Resonac because it can provide key materials for making next-generation chips, he said. 
        Resonac has been overhauling its business to focus more resources on chips, Hidehito Takahashi said, adding that the company will divest more divisions unrelated to semiconductors, including petrochemical materials, the company's oldest business. But finding a buyer won't be easy, and the company is actively looking for ways to take the unit off its balance sheet.
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