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JSR’s Incoming CEO to Prioritize Financial Recovery, Shifts Away from M&A Plans

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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.

China to Lead in Chipmaking Investment in 2025, SEMI Reports

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China is set to continue its dominance in global chipmaking investments in 2025, despite a notable year-over-year decline, according to a report from industry group SEMI. The country is expected to outpace all other regions in spending on new computer chipmaking equipment, followed by Taiwan and Korea.

Global Investment Growth

SEMI’s forecast for global fabrication plant investments shows a 2% increase in 2025, reaching $110 billion. This marks the sixth consecutive year of growth, driven largely by the demand for tools needed to produce chips for artificial intelligence (AI). SEMI predicts that the AI boom will have an even stronger impact on the industry in 2026, with an expected investment growth of 18%.

China’s Strategic Push and Decline in Investment

China has been the largest consumer of chips for years, and its chipmaking sector saw a massive push starting in mid-2023. With government support, China has accelerated efforts to reduce its dependence on imported chips, particularly in response to U.S. restrictions. Despite this surge, SEMI forecasts that China’s chipmaking spending will drop by 24% in 2025, falling to $38 billion from $50 billion in 2024. However, this still keeps China ahead of other major chip-producing countries like Korea, where SK Hynix and Samsung are expanding memory chip production, with investments projected at $21.5 billion.

Spending in Other Key Regions

Taiwan, home to TSMC, a major foundry for AI chips, is projected to spend $21 billion on chipmaking equipment in 2025. In comparison, spending in Korea will be significant, but not as high as China’s, with $21.5 billion expected. The Americas and Japan are each expected to invest $14 billion, while Europe’s investment is projected at $9 billion.

Key Players in the Equipment Market

The top players in the chip equipment market include ASML, Applied Materials, KLA, LAM Research, and Tokyo Electron. ASML, the largest chip equipment manufacturer, anticipates sales of €32-38 billion in 2025, maintaining a dominant market share in the lithography sector. Chinese equipment makers, such as Naura, AMEC, and SiCarrier (affiliated with Huawei), are also gaining traction in the market.

Exxon to Invest $100 Million in Facility for Producing Cleaning Alcohol for Semiconductor Industry

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Exxon Mobil has announced plans to invest $100 million to upgrade its chemical plant in Baton Rouge, Louisiana, to produce high-purity isopropyl alcohol (IPA) used in the semiconductor industry. The upgrade, which is scheduled to be completed by 2027, will cater to the growing demand for highly pure IPA, a crucial substance in cleaning and processing microchips, particularly as the tech industry booms.

Strategic Move Amid Chip Industry Growth

The demand for this specialized alcohol is surging, driven by the rise of advanced artificial intelligence and the subsequent growth of the chip industry. Companies are ramping up the construction of data centers and developing in-house chips to train AI systems, further increasing the need for high-purity cleaning agents.

Exxon’s chemical plant upgrade will enable the company to produce IPA at scale, supporting the construction of semiconductor fabrication plants (fabs) across the U.S. “It will create production at scale and allow us to support the fabs that are under construction in the U.S.,” said Frederik Donkers, Exxon’s vice president of intermediates.

Focus on U.S. Market

The production of highly pure IPA will primarily serve U.S.-based customers, as the longer shipping distances associated with international exports could compromise the purity of the product. Although Exxon did not disclose any new customer agreements for the IPA supply, the move addresses a gap in the domestic supply chain, as U.S. companies have historically relied on imports from Taiwan and Japan for this high-quality cleaning alcohol.