Japan Goes All-In on Semiconductors

Japan is making a $67 billion bet to once again be a global chip powerhouse. That includes lifting homegrown chipmaker Rapidus, which aims to mass produce advanced logic chips by 2027.

More on Momentum with Haslinda Amin.

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28 Comments

  1. Can Japan have the stamina to sustain these leading edge industries that require so much capital and long leadtime to be profitable? Only with an eye on the China market can they survive.

  2. For ignorant commenters, Japan has produced chips in the past, and is currently working to revive its chip industry:

    Past dominance
    In the 1970s/1980s, Japan was a world leader in chip manufacturing, controlling over half of the global market for dynamic random-access memory (DRAM). However, Japan's dominance declined due to:

    Changing market trends

    New competition from other economies, like South Korea and Taiwan
    Geopolitical pressure
    The U.S. seeing Japan as an economic rival

    Recent efforts to revive the industry
    Japan's semiconductor industry revitalization plans began in 2021. These plans include:

    Government funding: In 2021, the Japanese government approved $7.7 billion in funding to support domestic semiconductor manufacturing.

    New plants: Taiwan Semiconductor Manufacturing Company (TSMC) opened its first plant in Kumamoto, Japan in February 2024. Japanese chipmaker Rapidus is also set to open its pilot fab in Hokkaido in April.
    Educating a new generation of workers: The Yomiuri newspaper has emphasized the need to educate a new generation of skilled workers to produce advanced semiconductors.

  3. Don't worry, it's almost impossible.

    The government only talks but doesn't act, and there's a lot of bureaucracy, not to mention activists who only see their own side. Japan has tried a few times to promote electronic development, but it's just wasted taxes.