Japan will significantly increase its spending growth in the chip industry next year, ranking first in the world

Source: Cailian News Agency Author: Xia Junxiong

    Japan is preparing to significantly increase its spending in the chip industry to enhance its position in the global semiconductor market.

    According to data from the International Semiconductor Industry Association (SEMI), Japan is expected to invest $7 billion in wafer fab equipment next year, an increase of 82% compared to this year, ranking first in the world in terms of growth rate. However, Taiwan, China is still the largest chip manufacturing equipment procurement region, and the investment is expected to reach 24.9 billion US dollars in 2024.

    Japan has long been one of the main producers of equipment and materials required for chip manufacturing, and is currently using this advantageous position to attract major chip manufacturers such as TSMC and Samsung Electronics to establish factories in Japan.

    TSMC is currently constructing its first chip factory in Kumamoto Prefecture in Japan, which is expected to begin mass production by the end of 2024. In January of this year, TSMC CEO Wei Zhejia revealed that he was considering building a second chip factory in Japan, but he did not provide specific details.

    Yeon Wonho, a supply chain analyst at the Korea Institute for International Policy Research, said that Japan‘s goal includes developing the next generation of chips to stimulate Japan‘s technology industry and economy.

    Yeon added, "Japan hopes to make a breakthrough in the field of chips, and it hopes to collaborate with countries such as the United States for joint research while attracting manufacturing factories to its territory

    According to a 2021 report from the Center for Security and Emerging Technologies, a think tank at Georgetown University, the United States accounts for 39% of the total value of the global semiconductor supply chain, while its allies and partners (including Japan and Germany) account for 53%. The report states that China accounts for approximately 6%, but is rapidly developing its supply chain capabilities.

    In the 1980s, Japan‘s semiconductor manufacturing industry flourished, and in its heyday of 1988, its semiconductor products accounted for nearly 50% of global production. However, from the 1990s, with the rise of South Korea and Taiwan, China, Japan‘s semiconductor industry began to decline.

    Japan currently mainly focuses on supplying products such as wafers and some chip manufacturing equipment.