Tetsuro Hori, the incoming CEO of Japanese chip materials maker JSR, has signaled a strategic shift in focus toward financial recovery rather than industry consolidation. Hori, who will assume his role on April 1, emphasized that JSR’s current financial struggles make it unprepared for acquisitions.
Key Priorities and Potential Divestment
Hori highlighted the urgent need to improve JSR’s life sciences business, which has suffered losses and impacted overall performance. Industry speculation has grown regarding a possible sale of the division, a scenario Hori has not ruled out. “JSR might not be the best owner of the life science business,” he admitted, though he stressed that any decision would depend on improved financial performance.
Change in Strategy from Previous Leadership
Under outgoing CEO Eric Johnson, JSR was taken private last year in a $6 billion buyout by Japan Investment Corp (JIC). Johnson had argued that being privately held would enable JSR to pursue mergers and acquisitions more freely. However, this approach has faced skepticism within the industry, and Hori now indicates a more cautious stance.
“M&A must be supported by customers and create value,” Hori stated, implying that large-scale acquisitions are not currently on the agenda.
Industry Partnerships and Financial Outlook
While Hori acknowledged the possibility of collaborations, he noted that there have been no discussions with Resonac, another chip materials maker, despite industry speculation about potential synergies when JIC eventually exits JSR.
Financially, JSR reported a net loss of 22.2 billion yen ($148 million) for the six-month period ending September 30. Hori aims to restore profitability by the fiscal year ending March 2026.
