Japan strives to revive its semiconductor industry

Japan is trying to rebuild its semiconductor industry after years of depending on imports. The country once led the world in high-performance electronics but lost its edge in the 1980s when it allowed other countries, like South Korea, to dominate basic chip production. Recent global supply chain issues, exacerbated by the pandemic, prompted Japan to reconsider its approach. Experts say the government understands that to avoid decline, Japan needs its own semiconductor supplies. Changes in global trade policies have also increased this urgency. The Japanese government aims to ensure economic security by maintaining independent semiconductor capabilities. However, analysts believe Japan is not looking to be a global leader again but rather to support its own manufacturers while attracting foreign companies to set up facilities. As part of its strategy, Japan has partnered with Taiwan Semiconductor Manufacturing Co (TSMC) to build a plant in Kumamoto. This facility will produce chips for cars and consumer electronics, with significant government funding. TSMC plans to add another plant due to rising demand. Additionally, Japan has founded a new semiconductor company called Rapidus, receiving substantial government investment. This company is working with IBM and a Belgian research center to develop advanced chip technologies. Despite Taiwan's dominance in advanced semiconductors, Japanese companies are known for their expertise in machinery for chip production. However, there are concerns that this technology may be acquired by other countries, especially amid rising tensions between China and Taiwan. Experts emphasize that Japan must rise to the challenge, as competition in the semiconductor market is increasing. The government views this as a critical moment to revive its domestic industry while knowledge and skills are still available.