In the global competition of the semiconductor industry, Japan is showing its determination and actions to revive the semiconductor industry. Japan's eight largest semiconductor manufacturers have announced plans to invest about 5 trillion yen (about $31 billion) by 2029, a historic investment that marks Japan's strategic return in the global semiconductor market.
Investment layout of Japan's semiconductor industry
Japan's semiconductor industry investment plan is comprehensive, covering a wide range of fields, from power devices to image sensors. Here are some of the key investment moves:
- Sony Group: The company expects to invest approximately JPY 1.6 trillion in FY2021-2026 to increase production of image sensors to meet the needs of smartphone cameras, autonomous driving, and surveillance systems.
- Toshiba and ROHM: Plans to invest 380 billion yen to increase production of silicon power devices and energy-saving silicon carbide power devices to meet the needs of the AI data center and electric vehicle markets.
- Mitsubishi Electric: Announced that it will increase its production capacity of silicon carbide power devices fivefold to FY2022 and invest 100 billion yen in the construction of a new plant in Kumamoto Prefecture.
Figure: Japan invests another $31 billion to revive the semiconductor industry
Market share and policy support
According to Omdia data, Japan semiconductor manufacturers have a market share of 8.68% in 2023, a slight increase from 2022. This upward trend is due to the policy support and financial investment of the Japan government. The Japan government has allocated 3.9 trillion yen for subsidies for fiscal 2021-2023, of which 3 trillion yen will go directly to chip companies.
Challenges and prospects
Despite investment ambitions, Japan's semiconductor industry still faces a number of challenges:
- Technology gap: Japan lost the opportunity to develop cutting-edge technologies in the early 21st century, and its market share fell below 10% at one point.
- Market competition: Korea and Taiwan companies dominate the market with government support, and Japan needs to catch up in technology and markets.
- Global Supply Chain Uncertainty: U.S.-China tensions and supply chain disruptions caused by the pandemic have created uncertainty for the semiconductor industry.
Epilogue
The revival of Japan's semiconductor industry is not only a tribute to history, but also a bold investment in the future. The $31 billion investment plan, combined with government policy support, is expected to help Japan rebuild its competitiveness in the global semiconductor market. However, this process requires overcoming technical challenges, coping with market competition, and finding a stable position in the global supply chain. The road to revival of Japan's semiconductor industry is challenging, but also promising.
