Japan, once a semiconductor manufacturing powerhouse, has in recent years been working to revitalize its semiconductor industry in order to boost its competitiveness against countries like Taiwan and South Korea.
In an effort to upgrade the domestic semiconductor manufacturing sector, the Japanese government has been dangling subsidies to lure foreign chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC) to Japan, including a massive 920 billion yen ($6.2 billion) in subsidies. Funding For Rapidus, a semiconductor manufacturer established in 2022 with the goal of producing advanced chips domestically.
And on Friday, the Japanese government Announced Japan will expand its list of “core business areas” to apply foreign trade controls to companies that make semiconductor equipment and advanced electronic components, in a move seen as a move to strengthen the security of Japan’s semiconductor supply chain.
Foreign investors are required to submit prior notification when making a direct investment that acquires 1% or more of the voting rights of a listed company, or when acquiring shares in an unlisted company.
The list of core business sectors is maintained by the Ministry of Finance. It includes sectors deemed to be of high national security interest, and aims to ensure stable supply chains and prevent technology leaks and the diversion of civilian technology to military use. Sectors added to the list on Friday include manufacturers of machine tool parts such as ball screws and manufacturers of marine engines.
Japan’s Semiconductor Industry
Japan may not currently have a company dominating global semiconductor manufacturing like Taiwan’s TSMC or South Korea’s Samsung, but it has a long history in the semiconductor sector.
In the 1980s, VI Among the top 10 semiconductor manufacturers, Japanese companies controlled roughly half the market in 1988. mix Changing market trends, new competition, and geopolitical pressures ultimately eroded Japan’s market dominance.
Nevertheless, Japanese companies still play a major role in supplying the materials and equipment to make semiconductors, and Japan remains a key player in the global semiconductor ecosystem.
Companies like Shin-Etsu Chemical and Tokyo Ohka Kogyo may not be well known to many, but these companies are major suppliers of semiconductor manufacturing materials. Japanese material suppliers are Estimation It accounts for approximately 48% of the market share.
Companies such as Tokyo Electron, Lasertec and Nikon also provide machines and tools that chipmakers use in the chip-making process.
TSMC founder Morris Chang said the company’s new facility in Japan spark It will be a “chip renaissance” for the country.
The influence Japanese companies have in the semiconductor industry is also recognized in Washington by the Biden administration. It has been reported that pressure Tokyo will tighten export controls on semiconductor manufacturing equipment to China.
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