**Tokyo**: The Japanese government is shifting its semiconductor strategy towards international collaboration, highlighted by projects with TSMC and IBM. This approach aims to enhance domestic production capabilities and strengthen global supply chains, amidst rising competition and concerns regarding China’s technological advances.
The Japanese government has recognised the critical importance of semiconductors to the national economy, referring to them as the “rice of industry.” This metaphor underscores the necessity of this technology to the long-term viability and survival of various sectors, particularly manufacturing. However, despite the urgent need, Japan’s domestic production capabilities for both legacy and advanced chips remain insufficient, leading to a heavy reliance on global supply chains. Consequently, international collaboration has emerged as a primary strategy to achieve “strategic autonomy” and “strategic indispensability” within the semiconductor sector.
This revised policy approach marks a notable shift from Japan’s previous focus on supporting solely domestic manufacturers. Now, Japan is aligning its strategies with those of key international partners, including the United States, the European Union, and Taiwan. Achieving the dual goals of strategic autonomy and indispensability will require significant government incentives and industrial policies, and will depend heavily on collaboration with foreign firms.
One key initiative under this strategy is the Japan Advanced Semiconductor Manufacturing (JASM) project. Launched in collaboration with the Taiwan Semiconductor Manufacturing Company (TSMC), Sony, and Denso, this joint venture aims to establish a semiconductor fabrication plant in Kumamoto, backed by a substantial ¥500 billion government subsidy. The anticipated ¥1.2 trillion facility will focus on producing 22-nanometer and 28-nanometer chips, which, while not cutting-edge, are crucial for Japan’s automotive and consumer electronics industries. The collaboration underscores TSMC’s view of Japan as a key partner, rather than a competitor, particularly in the domain of mature nodes.
Speaking to The Japan Times, experts suggest that Taiwan’s involvement in the JASM project allows TSMC not only to secure its presence in Japan but also to strengthen the supply chain between the countries. The partnership leverages Japan’s technological advantages in materials and manufacturing equipment, while providing TSMC’s workforce with valuable experience in established manufacturing processes.
In addition to JASM, Japan’s ambition to establish itself as a leader in semiconductor innovation is exemplified by the Rapidus initiative. Launched in 2022 as an R&D project backed by the New Energy and Industrial Technology Development Organization, Rapidus aims to develop 2-nanometer chips. A total of ¥920 billion has been allocated to this project, with further funding planned for fiscal 2025. Rapidus has partnered with the U.S. firm IBM, which brings an exceptional depth of experience in advanced node technology, and the Belgian Interuniversity Microelectronics Centre (Imec) to advance research and innovation.
These partnerships are designed to facilitate knowledge exchange and to enable Japan to cultivate a skilled workforce in semiconductor research and development. The collaboration is beneficial for IBM as well, as advancements in semiconductors are integral to its aspirations in artificial intelligence and quantum computing.
Strategic cooperation is also being shaped by government policy, particularly in response to international concerns regarding competition in the semiconductor market. The United States has implemented export controls aimed at limiting China’s access to advanced semiconductor manufacturing equipment, an initiative supported by Japan and the Netherlands. While such actions may raise concerns among companies like Tokyo Electron and ASML regarding competition in the Chinese market, they represent a strategic move to fortify supply chains.
Moreover, Japan is actively participating in multilateral forums aimed at reducing competition between participating countries and enhancing the complementarity of their semiconductor strategies. Notably, the “Fab 4” alliance, comprising Japan, the U.S., Taiwan, and South Korea, seeks to coordinate and strengthen semiconductor supply chains among its members. Japan is also exploring trilateral partnerships with the U.S. and the EU to address regulatory issues, potentially leading to the establishment of technology standards that would underpin a stable and open semiconductor market.
As global geoeconomic competition, particularly with China, intensifies, Japan’s efforts to create a diversified and secure global chip ecosystem continue to gain momentum. Through strategic partnerships and collaborations, Japan aims to bolster its position in the semiconductor industry, reflecting a broader commitment to enhancing its economic autonomy and competitiveness on the world stage.
Source: Noah Wire Services
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