Outrageous! Who exactly is spreading the claim that Japan’s 'Big Four' have 'comprehensively cut off' photoresist supplies to China?

Meanwhile, Hard Science Jun also asked friends overseas to verify the claim. None of the official websites of Japan’s four major photoresist companies carries any press release or announcement regarding a 'supply cutoff to China.' Japan’s mainstream authoritative financial media have not reported on this so-called 'major event' at all. More crucially, the account that first posted the article later retracted the content. But it was already too late—the message had already been picked up and recycled by clueless bloggers within the self-reinforcing 'echo chambers' of social media, giving rise to a fully formed 'supply cutoff narrative.' So what, exactly, has the Japanese government done? To assess the authenticity of the 'supply cutoff' rumor, we must return to credible, publicly available information sources and examine the Japanese government’s actual policy actions concerning photoresists. First, as of now, photoresists are *not* included in Japan’s export control list. This is the most basic fact. On July 23, 2023, Japan’s Ministry of Economy, Trade and Industry (METI) formally imposed export controls on 23 types of advanced semiconductor manufacturing equipment—including cleaning, thin-film deposition, thermal processing, lithography, etching, and inspection equipment. This measure was a key part of Japan’s coordination with U.S. technology restrictions against China—but it targeted *equipment*, not materials. On January 31, 2025, the Japanese government announced an expanded export control list covering 21 additional items related to cutting-edge semiconductor manufacturing equipment, software, and quantum computers. On April 3, 2025, it again announced export controls on over a dozen semiconductor-related items—including certain CMOS integrated circuits, GAAFET technology, and quantum computers. In both rounds of tightening, the targets remained equipment and integrated circuits. According to reports cited by securities firms such as CITIC Securities—based on Caixin News—these control measures 'do not include semiconductor materials such as photoresists.' Second, Japan *is* indeed strengthening its indirect control over photoresists—but not via 'cutting off supply.' In June 2023, Japan’s government-backed Innovation Network Corporation of Japan (JIC) acquired JSR—the world’s largest photoresist supplier—for ¥909.3 billion, taking it private. This move was widely interpreted as Japan designating photoresists a 'strategic national resource,' using nationalization to secure direct control over this critical material supply chain. On December 30, 2024, METI added photoresist design and manufacturing technologies to a list of 10 technologies requiring prior reporting. Companies transferring photoresist-related technologies abroad must report to the government in advance and may face review. Crucially, however, this is a *prior-reporting system for technology transfer*, intended to prevent technology leakage—not a ban on exporting photoresist products themselves. Third, as of early 2026, Japan has *not* imposed a photoresist embargo on China. As noted in the China Daily report cited earlier, sources from SMIC and Hua Hong Group stated: 'no current ban exists yet,' and pointed out that domestic photoresist production in China has achieved 'significant progress.' This point is vital—even from the perspective of Chinese wafer fabs, the so-called 'photoresist cutoff' does not stem from formal government-level bans, but rather reflects more cautious, enterprise-level operations: longer approval cycles, tighter allocation quotas, and reduced willingness to accept new orders.

Japan plans to sell photoresist giant JSR! Fujifilm and Mitsubishi Chemical express interest in acquiring it—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 government-backed Innovation Network Corporation of Japan (JIC) is considering selling chip materials manufacturer JSR. Just two years ago, this state-backed fund acquired JSR for $6 billion, aiming to leverage the photoresist giant to drive consolidation across Japan’s materials industry. Now, amid the AI chip boom pushing valuations of chip supply-chain firms to record highs, JIC appears ready to cash in. Source: JSR Corporation Fujifilm and Mitsubishi Chemical have both expressed acquisition interest. On the day the news broke, Fujifilm’s stock rose 3%, while Mitsubishi Chemical’s share price decline notably narrowed. The capital markets delivered their verdict in the most direct way possible: the photoresist business is red-hot right now. Who exactly is JSR—and why is it worth so much? Where do Chinese manufacturers stand? These three questions, taken together, offer a clear window into this entire industry. JSR: A Company Propelled by 'National Will' Founded in 1957, JSR began as a synthetic rubber company—its name stands for Japan Synthetic Rubber. It later pivoted to semiconductor materials and spent decades deepening its expertise in photoresists, ultimately becoming one of the world’s most indispensable suppliers. For the fiscal year ending March 2026, JSR reported revenue of ¥400.7 billion and net profit of ¥60.7 billion (approximately $380 million), having fully rebounded from previous losses dragged down by its life sciences division. JIC’s original acquisition aimed to position JSR as a pivotal piece in restructuring Japan’s materials industry. Today, the AI wave has lifted valuations across the chip supply chain—and JIC sees an opportunity for a solid exit return. For Fujifilm, acquiring JSR would cement its position as the global leader in the photoresist market. 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 who ultimately wins the bid, JSR’s valuation logic has long transcended that of a mere materials company; it now functions more like a strategic bargaining chip. Photoresist: The 'Film Negative' of Chips To understand why a photoresist company commands a $6 billion valuation, we must first clarify what photoresist actually is. The simplest analogy: photoresist is the 'film negative' 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 to light, specific areas undergo chemical changes. After development, these exposed regions form precise circuit patterns, which are then transferred into the wafer via etching. This step directly determines chip process node precision and yield. Source: Doubao AI Photoresists are categorized by exposure wavelength—from longest to shortest—as 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 beyond.

Japan Fund JIC Plans to Sell JSR to Mitsui Chemicals, Sources Say

18 hours ago

Japan Investment Corp plans to sell semiconductor materials maker JSR to Mitsui Chemicals in a deal exceeding 1.3 trillion yen, reshaping Japan's chip supply chain despite financial concerns for the buyer.

reuters

2026-05-27

Japan State-Backed Fund Considering Sale of Chipmaking Materials Maker JSR, Sources Say

2026-11-03

Japan Fund JIC Plans to Sell JSR to Mitsui Chemicals, Sources Say

Japan Fund JIC Plans to Sell JSR to Mitsui Chemicals, Sources Say

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