Japan-Backed Fund, to Buy, Chipmaker JSR.<br />On June 26, Japan announced plans to bolster its chip <br />industry with a government-supported fund to <br />purchase semiconductor materials producer JSR Corp.<br />The $6.4 billion move by Japan <br />Investment Corp (JIC) will be overseen <br />by the country's powerful trade ministry. .<br />Reuters reports that the move is the latest by the government to regain Japan's dominance in advanced chip production.<br />In late December, JIC reportedly plans to offer <br />4,350 yen per share ($30) to take JSR private. .<br />Financing for the massive deal will be provided <br />by Mizuho Bank and the government-supported <br />Development Bank of Japan (DBJ). .<br />Ahead of the official announcement, shares in <br />JSR reached their daily limit, rising by 22%.<br />Reuters reports that the news also increased expectations <br />of sector consolidation, which drove shares in Tokyo Ohka <br />Kogyo, Sumitomo Chemical and Shin-Etsu Chemical up. .<br />Capabilities here are superb, <br />but there are a lot of us and all of <br />us are spending money redundantly, <br />so we feel the opportunities for <br />efficiency gains are significant, Eric Johnson, JSR CEO, via Reuters.<br />News of the deal comes as the United States <br />looks to increase domestic chip manufacturing <br />capacity amid deepening tensions with China.<br />News of the deal comes as the United States <br />looks to increase domestic chip manufacturing <br />capacity amid deepening tensions with China.<br />Reuters reports that both the Netherlands and <br />Japan have joined the U.S. in placing restrictions <br />on the export of chipmaking tools to China
