Japan’s Resonac Holdings is strategically pursuing partnerships and acquisitions, signaling a phase of expansion following a period of debt reduction and internal restructuring. Hidehito Takahashi, the CEO of the semiconductor materials producer, revealed the company’s proactive stance in an interview with Reuters on Wednesday. Resonac’s interest extends to potentially participating in the divestment of a state-backed fund’s stake in rival JSR, a company known for its photoresist products and intentions to drive consolidation within the sector24. This move aligns with Resonac’s broader strategy to strengthen its position in the competitive landscape of semiconductor materials. The company was formed in January 2023 after Showa Denko’s acquisition of Hitachi Chemical and has since been divesting assets, including a partial spin-off of its petrochemical division. These steps enable Resonac to focus on its core strengths and explore new opportunities for growth through strategic alliances and acquisitions.

Resonac’s ambitions are supported by the establishment of a research and development center in Silicon Valley, dedicated to advanced semiconductor packaging and materials. This initiative aims to foster closer collaboration with local companies, enhancing Resonac’s ability to innovate and develop cutting-edge solutions for the semiconductor industry. While the company is keen on expanding its research capabilities in the United States, Takahashi clarified that Resonac is not currently considering manufacturing materials in the country. The CEO’s vision involves creating a chip materials company with annual revenue exceeding ¥1 trillion and an EBITDA margin of 20% or higher, positioning it among global industry leaders like 3M Co. And DuPont de Nemours, Inc. Resonac is focusing on the chip sector and intends to offload units unrelated to semiconductors, including its petrochemical materials business.

The consolidationResonac envisions is deemed necessary to maintain competitiveness against overseas rivals, particularly as development costs rise and customers demand greater performance from semiconductor components. Takahashi emphasized that the Japanese industry should not remain fragmented, and executives should prioritize the collective success of the sector over individual dominance. Resonac’s interest in JSR, the world’s largest photoresist maker, highlights the potential for further consolidation. Takahashi believes Resonac is the most logical partner for JSR, and the company is considering how to actively participate in JSR’s future4. He also remarked that he would like to help the industry consolidate.

Resonac has a broad product lineup for the back-end process of semiconductor manufacturing. The company operates a Packaging Solution Center in Kawasaki City, established in 2019, to accelerate the development of next-generation semiconductor packages. This center replicates the entire manufacturing process with its advanced semiconductor packaging equipment, providing total solutions such as optimizing packaging material combinations and proposing ideas for material usage, including process conditions. Resonac’s capabilities extend to providing semiconductor materials for front-end processes, back-end processes, and substrates, a range few private companies worldwide can match6. By promoting co-creation with equipment and material makers, Resonac aims to understand its customers’ challenges and offer diverse solutions, connecting divided supply chains and expanding its network.