Japan Investment Corp (JIC), a state-backed fund overseen by Japan’s trade ministry, plans to sell semiconductor-materials producer JSR to Mitsui Chemicals in a transaction that could exceed 1.3 trillion yen ($8.20 billion). A decision could come as soon as this month, according to two people familiar with the matter. JIC acquired JSR for about 900 billion yen two years ago to promote consolidation in the semiconductor-materials sector, but is now seeking to capitalize on higher valuations for chip-related companies amid an artificial-intelligence investment boom. JSR is a leading producer of photoresists, which transfer circuit patterns onto semiconductor wafers. Mitsui Chemicals shares fell 13% after the report, as investors focused on the funding required for a deal that could be among Japan’s largest chemicals-sector acquisitions. Mitsui Chemicals had 217.8 billion yen in cash and cash equivalents, 876.4 billion yen in interest-bearing debt and a debt-to-equity ratio of 0.75 at the end of June.