Japan wants to lead semiconductor manufacturing

Japan wants to lead semiconductor manufacturing

Will Japan lead the semiconductor manufacturing industry?

In a high-stakes race to dominate the burgeoning $1 trillion semiconductor market by 2030, nations are vying for supremacy amidst intensifying geopolitical tensions, notably between China and the US. Japan, once a semiconductor titan, is reigniting its past glory with the government-backed Rapidus initiative, aiming to create a “Hokkaido Valley” rival to Silicon Valley. This ambitious endeavor, symbolized by Atsuyoshi Koike’s groundbreaking ceremony in Hokkaido, draws heavyweight partners like Taiwan Semiconductor Manufacturing, Samsung Electronics, and Mitsubishi Chemical Group, involving investments in the tens of billions of yen. Despite the daunting challenges of reviving its former dominance, Japan is strategically positioning itself amid the US-China chip conflict, securing vital semiconductor production capabilities in the region. Prime Minister Fumio Kishida’s government is injecting substantial subsidies, including ¥20 billion for Samsung’s Yokohama facility, and spearheading the Leading-edge Semiconductor Technology Center for R&D, targeting a revenue goal of over ¥13 trillion by 2030. Yet, Japan faces hurdles such as enticing private investment, cultivating a skilled workforce, and meeting sustainability standards in an industry marked by its environmental impact. As Asian neighbors like Singapore, Vietnam, and even China, emboldened by US export bans, escalate their semiconductor ambitions, Japan’s resurgence in this critical sector remains a blend of hopeful aspiration and pragmatic skepticism.

Read the full article here: https://medium.com/@geotechinsight

source: https://techhq.com/2024/01/how-can-semiconductor-industry-in-japan-make-a-comeback/#:~:text=Japan%20reclaims%20semiconductor%20industry%20relevancy&text=The%20government%20is%20also%20handing,half%20of%20the%20lab’s%20cost

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Devotion by Jim Hall is licensed under a Attribution 4.0 International License.