Japan, the former bright pearl of chip manufacturing, is striving to rekindle the glorious flame of its semiconductor industry in recent years, striving to regain its competitive advantage in the competition with strong players such as Taiwan and Korea. At the government level, a series of well-planned initiatives are aimed at activating this long-dormant fertile land of science and technology.
The Japan government has not only generously provided attractive subsidy policies to attract international chip giants such as Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) to set up roots in Japan and seek common development plans. At the same time, the government has also poured up to 920 billion yen (about 6.2 billion U.S. dollars) into the emerging semiconductor manufacturer Rapidus, a rising star founded in 2022 that carries the dream and hope of Japan to produce cutting-edge chips domestically.
On Friday, the Japan government took another important step, announcing the expansion of the boundaries of the "core business sector" to include manufacturers of chip manufacturing equipment and advanced electronic components in a tight network of foreign trade supervision. This move not only demonstrates Japan's determination to strengthen the security of the semiconductor supply chain, but also reveals the great importance it attaches to technology secrecy and national security. For foreign investors, if they want to make a difference in the Japan market, whether they increase their stake in listed companies or get involved in unlisted companies, they must first pass the "declaration" pass and undergo strict scrutiny.
Photo: Japan vigorously develops semiconductor industry (Source: Fortune)
Looking back at history, Japan's semiconductor industry has had a glorious era. In the 80s of last century, among the world's top ten chip manufacturers, Japan companies occupied six seats, and in 1988, they held half of the market. However, the changing market situation, the rise of emerging forces and the geopolitical game have gradually made Japan cede its hegemony. But even so, Japan's position in the global semiconductor industry chain is still very important, especially in the field of semiconductor materials and equipment supply, Japan companies such as Shin-Etsu Chemical, Tokyo Applied Chemical Industry, etc., with their excellent product quality and technical strength, firmly occupy half of the market, the global market share is as high as about 48%.
The outstanding contributions of companies such as Tokyo Electron, Lasertec, and Nikon in the field of high-end manufacturing equipment have provided indispensable assistance to global chip manufacturers. Mr. Zhang Zhongmou, an industry legend and founder of TSMC, predicts that with the gradual rise of TSMC's new factory in Japan, a "chip revival" drama in Japan is about to be staged.
It is worth noting that the Biden administration of United States has also frequently pressured Japan to adopt stricter restrictions on the export of chip manufacturing equipment to China. This move is undoubtedly a recognition and expectation of the global influence of Japan's semiconductor industry. Under the joint promotion of many forces, the future of Japan's semiconductor industry is undoubtedly worth waiting for.
