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The Japanese government is making chip revival a mission and TSMC is considering adding plants in Japan

Update time : 2023-01-03 10:36:38

According to reports, the Japanese government has made promoting the local chip industry a national mission and will invest a lot of money.

Decades of underinvestment have left Japan, once the world's largest chipmaker, dependent on South Korea and Taiwan for most of its semiconductors, and a global supply shortage in 2021 exposes the risks of the status quo. As a result, Japan's trade ministry said this month that promoting the local chip industry is a national mission as important as securing food and energy.
Tetsuro Higashi, a former president of Tokyo Electronics, Japan's largest chipset maker and now a senior government adviser on semiconductor strategy, said at least 1 trillion yen ($9 billion) would be needed this fiscal year and trillions more after that. "If we miss this opportunity now, there may not be another," he said this week.
This month, Japan's Economy and Finance Minister Akira Amari made similar comments, which could mean that real government funding for Japan's semiconductor development is coming. Still, the Japanese government's investment pales in comparison to other countries, and in an era where the operating cost of advanced fabs exceeds $10 billion, investment in the semiconductor industry will grow rapidly in the future. However, opening up cooperation with global semiconductor leaders increases the likelihood of Japan's success. At this stage, the Japanese government's strategy includes using incentives to attract overseas foundries such as TSMC to establish manufacturing bases in Japanese joint ventures with local partners.
Since the 1990s, the Japanese government has tried to revive Japan's chip industry and create a local leader by merging struggling domestic companies, but similar attempts have mostly failed. TSMC has not said whether it is willing to participate in the cooperation, but recently set up a subsidiary near Tokyo to expand research on faster and more energy-efficient 3D chips with several Japanese partners, of which the Japanese government has invested about $170 million.

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