The world’s second-largest photoresist company is up for sale.

Mitsui Chemicals plans to acquire JSR, the world’s second-largest photoresist manufacturer. According to reports, Mitsui Chemicals will acquire JSR, a major Japanese semiconductor materials company. The plan is to purchase JSR from the Japanese government-backed fund Innovation Network Corporation of Japan (JIC) for over ¥1.3 trillion. Mitsui Chemicals intends to integrate JSR’s globally competitive semiconductor materials business into its portfolio to enhance profitability. JIC selected Mitsui Chemicals as the preferred negotiating party for the sale of JSR by November 4. If completed, this transaction would become the largest merger and acquisition (M&A) deal in the history of Japan’s chemical industry. On November 4, Mitsui Chemicals issued a statement regarding the reported acquisition, clarifying that the report was not issued by the company itself. It added: “To enhance corporate value, the company is indeed exploring various possibilities—including this one.” It further noted: “No decision has yet been made.” JSR ranks second globally—behind Tokyo Ohka Kogyo (TOK)—in the field of photoresists (light-sensitive materials) used to form semiconductor circuits. JIC, established in 2018, is a public-private investment fund supervised by Japan’s Ministry of Economy, Trade and Industry (METI). Operating under the Industrial Competitiveness Enhancement Act, JIC invests to promote open innovation and strengthen Japan’s industrial competitiveness. In 2024, JIC acquired JSR for approximately ¥1 trillion and took it private. Following privatization, JSR has been pursuing industry consolidation and concentrating its operational resources on semiconductor materials, while divesting loss-making businesses. Japan’s photoresist price surge Photoresist is the core light-sensitive consumable material used in semiconductor lithography. Photoresist is a critical material in wafer fabrication. Classified by exposure light source wavelength, photoresists include g-line, i-line, KrF, ArF, and EUV types—with increasing value and technical barriers corresponding to shorter wavelengths. China’s semiconductor photoresist market size was approximately ¥5.6 billion in 2024, projected to reach ¥8.1 billion in 2026 and ¥11.5 billion in 2029. The global photoresist market exhibits pronounced regional concentration, with major manufacturers located in Japan, Europe and the U.S., South Korea, and Taiwan. Japanese companies still dominate the global photoresist market, with key players including JSR (Japan Synthetic Rubber), TOK (Tokyo Ohka Kogyo), Shin-Etsu Chemical, Sumitomo Chemical, Fujifilm, Asahi Kasei, Resonac, Sun Chemical, Toray, and Mitsui Chemicals. Their products serve semiconductor, display panel, and PCB applications—and they maintain an overwhelming advantage in the high-end photoresist market for integrated circuits. U.S. and European manufacturers—such as DuPont (U.S.) and Merck (Germany)—hold notable shares in novel display and semiconductor photoresist segments. Korean firms—including Dongjin Semichem, SK Materials, and Kolon—leverage their mature domestic display supply chains to secure strong positions in display photoresist niches. Taiwanese manufacturers—including Everlight Chemical, Chi Mei Corporation, Eternal Chemical, Daxin Electronics, Chang Chun Plastics, Advanced Micro Devices (AMO), and Lusen Technology—focus primarily on PCB and novel display applications.

Japan plans to sell photoresist giant JSR! Fujifilm and Mitsubishi Chemical express interest; how much time remains for China’s domestic players?

On May 28, 2026, a Reuters report sent shockwaves through the semiconductor materials community: Japan’s state-owned Innovation Network Corporation of Japan (JIC) is considering selling chip materials manufacturer JSR. Two years ago, this government-backed fund acquired JSR for $6 billion, aiming to leverage the photoresist giant to drive consolidation across Japan’s materials industry. Now, amid surging AI chip demand pushing valuations of chip supply-chain firms to record highs, JIC appears ready to cash in. Source: JSR Corporation Both Fujifilm and Mitsubishi Chemical have expressed acquisition interest. On the day the news broke, Fujifilm’s stock rose 3%, while Mitsubishi Chemical’s share price decline notably narrowed. Capital markets delivered the clearest possible message: the photoresist business is red-hot right now. Who exactly is JSR? Why is a photoresist company worth so much? And where do Chinese manufacturers stand? Answering these three questions together provides a complete picture of this industry. JSR: A company elevated by ‘national strategy’ Founded in 1957, JSR originally operated as a synthetic rubber company—the acronym JSR stands for Japan Synthetic Rubber. It later pivoted to semiconductor materials, spending decades deepening its expertise in photoresists, ultimately becoming one of the world’s most indispensable suppliers. For the fiscal year ended March 2026, JSR reported revenue of ¥400.7 billion and net profit of ¥60.7 billion (approximately $380 million), fully recovering from prior losses dragged down by its life sciences division. JIC initially acquired JSR to use it as a pivotal piece in restructuring Japan’s materials industry. Today, the AI boom has lifted valuations across the entire chip supply chain, giving JIC an opportunity to realize a solid exit return. For Fujifilm, acquiring JSR would secure its position as the world’s top photoresist supplier. For Mitsubishi Chemical, it would represent a textbook vertical integration—from upstream chemical raw materials all the way to core end-use materials. Regardless of the final buyer, JSR’s valuation logic has long transcended that of a typical materials company; it now functions more like a strategic asset. Photoresist: The ‘negative film’ of chips To understand why a photoresist company commands a $6 billion valuation, we must first grasp what photoresist actually is. The simplest analogy: photoresist is the ‘negative film’ of chip manufacturing. Lithography—the core process in semiconductor fabrication—uses light to ‘print’ circuit patterns onto silicon wafers. Photoresist is the light-sensitive material coated onto the wafer surface; upon exposure, it undergoes a chemical change, and after development, forms precise circuit patterns—which are then etched into the wafer. This step directly determines chip process precision and yield. Source: Doubao AI Classified by exposure wavelength—from longest to shortest—photoresists fall into categories: g-line (436 nm), i-line (365 nm), KrF (248 nm), ArF (193 nm), and EUV (13.5 nm). Shorter wavelengths enable finer line widths—and thus correspond to more advanced process nodes. KrF serves mature nodes above 28 nm; ArF covers 14–28 nm; immersion ArF (ArFi) supports 7–14 nm; and EUV is the standard for TSMC’s 2 nm and below processes.

Mitsui Chemicals to Acquire JSR in $11.6 Billion Deal

3 hours ago

Mitsui Chemicals agreed to acquire semiconductor materials maker JSR Corp for $11.6 billion to strengthen its position in advanced photoresists and ICT solutions. The combination aims to create one of Japan's leading semiconductor materials companies.

chemweek

2026-01-09

Mitsubishi Gas Chemical Confirms Venezuela Methanol Operations Unimpacted by US Military

2026-01-09

Mitsui Chemicals CEO outlines strategic shifts amid challenging global, environmental landscape

2026-01-20

Mitsui Chemicals launches proprietary procurement platform to strengthen supply chain disaster preparedness

2026-01-30

Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical Integrate Ethylene Facilities

2026-02-02

Mitsubishi Chemical Group to Transfer Venture Capital Business to Subsidiary