TOKYO (Reuters) -State-backed JIC's private equity arm said its goal of driving consolidation in Japan's chipmaking sector through portfolio firm JSR is unaffected by weak financial performance at the photoresist maker.

Japan Investment Corp took JSR private last year in a $6 billion deal with the materials manufacturer saying it planned to make deals. However, JSR ended the year in March with an operating loss of 209 billion yen ($1.45 billion).

"Our goal was to take JSR private and ... through a series of industry reorganisations, such as mergers with similar companies or rivals ... to significantly grow the semiconductor business and enhance international competitiveness, leading to re-listing," JIC Capital CEO Shogo Ikeuchi said in an interview.

"That goal hasn't really changed at all even now," he said.

JSR has replaced top management and embarked on restructuring, with its new CEO telling Reuters that the firm is not ready to make acquisitions.

The company's struggling life sciences business has pulled down its earnings. JSR has agreed to sell part of the business to Tokuyama Corp ( TKYMF ) in an 82 billion yen deal.

JIC's buyout of JSR has been controversial in the industry, with some questioning the need for such intervention and prospects for successfully reshaping the sector.

"Japan is a country where restructuring is structurally difficult," Ikeuchi said.

JIC was set up in 2018 to invest in companies with the goal of boosting Japan's competitiveness and is overseen by the trade ministry.

JSR previously said it aims to relist in five to seven years.

That is still the plan, though an earlier listing is possible, said Ikeuchi, a former executive at staffing firm Recruit.

The CEO of JSR peer Resonac, Hidehito Takahashi, in February said his firm was interested in being involved in JSR when JIC exits.

Resonac is one option among many, Ikeuchi said, noting the chip materials maker's debt burden.

($1 = 144.3800 yen)