TOKYO (Reuters) - The incoming CEO of Japanese chip materials maker JSR plans to focus on restoring the company's business performance, shifting away from previous ambitions to drive consolidation in the sector.

JSR's financial performance is not good, and the company is not ready to make acquisitions, Tetsuro Hori, who will assume the CEO role on April 1, said in an interview on Wednesday.

"We need to recover the life science business. This is the first priority," he said.

The company's business performance has deteriorated, affected by losses in its life sciences unit, sparking industry speculation that JSR may attempt to sell the division.

"JSR might not be the best owner of the life science (business), that's what I'm thinking right now," said Hori, adding that nothing has been decided and the business' performance would need to improve before any potential sale.

Under outgoing CEO Eric Johnson, JSR was taken private by the state-backed Japan Investment Corp (JIC) last year in a $6 billion deal.

Johnson had argued that the buyout would free JSR, a leading maker of photoresists for chipmaking, from the challenge of managing its foreign investor base, enabling the company to pursue sector deals.

However, the transaction has been controversial, with some in the industry questioning whether JSR could successfully make deals that would significantly reshape the sector.

Hori said that M&A must be supported by customers, and they must also create value.

Hori joined JSR as chief financial officer in January, and had previously served as an executive at chipmaking equipment manufacturer Tokyo Electron ( TOELF ).

Hidehito Takahashi, the CEO of chip materials maker Resonac ( SHWDF ), said last month that he would like his company to be involved when JIC exits JSR.

"If we can find some good synergy probably those deals could be on the table," Hori said, adding that he hasn't had discussions with Resonac ( SHWDF ).

JSR booked a net loss of 22.2 billion yen ($148 million) in the six-month period ended September 30.

Hori hopes to return the business to profitability by the next financial year, which ends in March 2026.

($1 = 150.3800 yen)