The Nikkei reported on Saturday that Japan Investment Corp is in talks to buy JSR Corp, the country's largest chipmaker, for around 1 trillion yen ($6.96 billion).

According to the report, the fund plans to make a tender offer as soon as this year after clearing the buyout with domestic and foreign antitrust authorities.

According to Nikkei, if the deal is completed, JSR will be delisted from the Tokyo Stock Exchange as soon as 2024.

The company, which began as a government-backed synthetic rubber manufacturer in 1957, now provides photoresists to global chipmakers. They are used to transfer circuit patterns from silicon wafers to silicon wafers.

To purchase JSR, JIC intends to establish a new company with 500 billion yen in capital, while Mizuho Bank will provide another 400 billion yen in finance.

The fund plans to raise 100 billion yen via preferred shares and subordinated loans underwritten by various banks, according to Nikkei.

The deal would grant JSR, with its significant 30 per cent share of the global photoresist market, greater freedom for expansion, without being constrained by worries about stock market performance, Nikkei said.