Japanese Prime Minister Fumio Kishida recently visited a new semiconductor plant in Kyushu, Japan, for which the government has pledged over 1 trillion yen ($7 billion) in support. The plant, majority-owned by Taiwan Semiconductor Manufacturing Co. (TSMC), marks the Taiwanese giant's first venture in Japan.
During his tour of the facility, Kishida emphasized the significance of the project, stating that it will have positive ripple effects not only in the semiconductor industry but also in sectors such as electric vehicles and electronics.
Japanese companies like Sony, Denso, and Toyota are investing in the TSMC subsidiary that operates the plant, with TSMC retaining an 86.5% stake in the Japan Advanced Semiconductor Manufacturing Company.
Japan's move to revitalize its semiconductor industry comes as the country aims to reduce its reliance on imports following pandemic-related chip shortages that impacted various industries, including auto manufacturing.
The new plant, part of a larger investment totaling $20 billion in the Kumamoto region, is expected to create 3,400 high-tech jobs directly. A second plant is slated to be operational within three years.
Highlighting Japan's ties with Taiwan and the U.S., Prime Minister Kishida is set to meet President Joe Biden in Washington next week, as part of efforts to strengthen relationships amid geopolitical tensions.
As semiconductors become increasingly crucial in industries like electric vehicles and artificial intelligence, Japan's strategic focus on chip production reflects a broader global trend of countries vying for technological supremacy.
While China's claims over Taiwan remain a contentious issue, Japan's proximity to Taiwan makes it an attractive location for semiconductor investments. TSMC's expansion plans in the U.S. and Europe further underscore the strategic importance of semiconductor manufacturing in the current geopolitical landscape.
Overall, Japan's efforts to bolster its semiconductor industry signal a proactive approach to securing a stable supply of advanced chips and regaining its position in the global semiconductor market.
