Japan’s efforts to strengthen its chip industry through investments and government support
Japan’s semiconductor industry is receiving investments and government support, as well as, chipmakers support.
In response to the persistent global chip shortages affecting numerous sectors, Japan is strengthening its efforts to bolster its semiconductor industry. The country is determined to enhance its chip manufacturing capabilities, reduce dependence on foreign suppliers, and bolster domestic production. To achieve these goals, the Japanese government has unveiled plans to allocate substantial funds and offer subsidies to semiconductor manufacturers, thereby encouraging research, development, and production within Japan.
TSMC plans to build a chip plant in Japan, while Micron Technology is investing in extreme ultraviolet technology. Samsung is considering setting up a chip packaging test line in Japan. The government aims to treble chip sales by 2030 and is offering subsidies and support to encourage investment. Japan has also restricted the export of chipmaking gear and has a state-backed fund, Japan Investment Corp (JIC), for investment in Japanese companies. JIC is currently in talks with JSR Corp for a potential buyout.
The government’s support and strategic investments in the semiconductor sector reflect Japan’s determination to address the current chip shortage challenge and position itself for long-term success in the evolving technological landscape.