Recently, it was reported that major Japanese semiconductor manufacturers, including Sony Group and Mitsubishi Electric, plan to invest about 5 trillion yen ($31 billion) by 2029 to increase the production of power devices and image sensors.
Japan's chip industry used to be one of the leaders in the global semiconductor market, but with the acceleration of technology iteration and the intensification of international competition, the pace of cutting-edge technology development of Japanese companies has gradually slowed down, and the market share has also shrunk. To reverse this, the Japanese government and the business community have worked together to develop this massive investment plan. This is not only a deep reflection on the current situation of Japan's chip industry, but also a firm confidence and determination for future development.
As a key part of this investment plan, Sony Semiconductor Corporation has announced a joint investment with TSMC, the world's largest chip foundry. They plan to establish a subsidiary called Japan Advanced Semiconductor Manufacturing Corporation (JASM) in Kumamoto Prefecture, Japan. The facility, which will focus on semiconductor production on 22/28nm processes, is expected to be completed in 2024 and will directly create 1,500 high-tech jobs and have a capacity of 45,000 wafers per month for 12-inch wafers.
The Japanese government's strong support for this investment plan reflects the importance it attaches to the semiconductor industry as a key material for the country's economic security. The government has allocated 3.9 trillion yen for subsidies from fiscal 2021 to fiscal 2023, of which 3 trillion yen will be used to subsidize major domestic and foreign chip companies. In addition, the Japanese government has set a target of increasing domestic semiconductor sales to more than 15 trillion yen by 2030, which is three times that of 2020.
Pictured: Sony and other Japanese chipmakers will spend $30 billion in a production race (Source: Nikkei).
According to the plan, the $30 billion investment will be mainly used in the following areas:
Power semiconductors: With the rapid development of electric vehicles, smart grids, and other fields, the demand for high-performance power semiconductors has increased dramatically. Japanese companies such as Mitsubishi Electric, Toshiba and Rohm plan to increase R&D investment and capacity expansion in high-performance materials such as SiC silicon carbide to meet the growing demand in the market.
Sensor technology: The importance of sensors as a core component of emerging technologies such as the Internet of Things and autonomous driving is self-evident. Japanese chipmakers will invest in the R&D and production of sensor technologies to support the rapid development and application of these emerging technologies.
Logic chips: In order to make a breakthrough in the field of high-end logic chips, Rapidus plans to invest 2 trillion yen (about 14.758 billion U.S. dollars) to build a 2nm wafer foundry production line. This move will not only significantly enhance Japan's strength in the field of logic chip manufacturing, but also bring new growth points to the Japanese chip industry.
In order to encourage enterprises to invest and reduce investment risks, the Japanese government will provide subsidies of about 1.5 trillion yen (about 11.069 billion US dollars). These subsidies will be directly used to support the company's capacity expansion, technology research and development, and market development. In addition, the Japanese government has also created a more favorable investment environment for enterprises through policy measures such as tax incentives and financing support. The introduction of these policies not only reflects the Japanese government's attention and support for the chip industry, but also provides a solid guarantee for the investment and development of enterprises.
