In response to the ever-changing global geopolitical landscape, nations worldwide are intensifying efforts to strengthen their domestic semiconductor supply chains. Recent data from TrendForce indicates Taiwan’s dominance in the global semiconductor foundry sector, with a commanding 65% market share in global foundry revenue, led by TSMC’s 56%. Amidst this scenario, Japan is striving to regain its footing in the semiconductor industry, focusing on reshaping its supply chain dynamics and revitalizing its semiconductor manufacturing capabilities.
Japan’s resurgence in the semiconductor sector is evident, as it strategically repositions itself to cultivate a robust semiconductor industry within its borders. One of the key regions driving this revival is Kyushu, which has rapidly become a semiconductor hotspot. With the presence of industry giants such as Sony and SUMCO, coupled with the upcoming completion of TSMC’s Kumamoto Plant (JASM), Kyushu has earned the moniker “Silicon Island.” JASM is set to be one of the most advanced semiconductor factories in the region, accommodating processes ranging from 12 to 28nm, with plans for even more advanced processes based on market demand. The plant’s strategic proximity to Sony’s existing CIS factory is expected to enhance collaboration in semiconductor manufacturing and related technologies.
Tohoku, encompassing areas around Sendai and Fukushima, stands as a global hub for semiconductor raw materials production. Renesas, SUMCO, and Shin-Etsu, along with the research expertise of Tohoku University, contribute to the region’s significance in semiconductor materials research and development. PSMC’s plans to establish a 12-inch wafer plant in Sendai further underscore Tohoku’s importance in semiconductor manufacturing, particularly in automotive electronics production.
Hokkaido has emerged as a hub for advanced semiconductor technology, with Rapidus, a Japanese enterprise, choosing the region for its base. Rapidus aims to pioneer 2nm semiconductor technology, with collaborative efforts with IBM in the United States highlighting Japan’s ambition in advanced semiconductor manufacturing. Government plans indicate that Rapidus could attract upstream equipment and material suppliers, potentially fostering a semiconductor community in Hokkaido.
Japan’s Ministry of Economy, Trade, and Industry is actively collaborating with the private sector to foster a resurgence in the semiconductor industry. Favorable exchange rate policies supporting factory construction and investments indicate a promising future for semiconductor exports. However, Japan faces challenges, including a shortage of semiconductor talent. To address this issue, the government has implemented generous subsidy programs for talent development, strategically positioning Japan to regain its former glory in the global semiconductor arena.
