Semiconductor key opportunity industry growth presents for Japanese manufacturers

Backed by its historical expertise in semiconductor production and a large network of equipment, component and material makers, Japan is set to play a vital role in the future of the semiconductor industry.

In November last year, the Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest manufacturer of semiconductors, announced the construction of its first-ever foundry in Japan. The subsidiary, named Japan Advanced Semiconductor Manufacturing (JASM), a joint venture between majority stakeholder TSMC and Sony Semiconductor Solutions (SSS) Corporation, will begin operation in 2024, churning out 45,000 high-end logic wafers a month in response to increasing global demand.

The project is seen as a huge nod of confidence from TSMC in Japan's semiconductor industry, with automobile parts maker Denso - foreseeing increased demand for semiconductors in the global car industry - also joining as a third investor in 2022, bringing the overall investment in the plant to $8.5bn.

"As the global semiconductor demand is expected to continue to grow, we expect JASM will contribute to the stable supply of logic wafers," says Terushi Shimizu, president and CEO of SSS. "Also, from the perspective of the Japanese semiconductor industry as a whole, if the establishment of JASM stimulates the activities of partner and service companies that support its production activities, it might lead to the revitalization of the industry, which we highly welcome."

The revitalization of Japan's semiconductor industry may not only be crucial for Japan, but the world as a whole. With the value of the global semiconductor market expected to swell to $1 trillion by 2030 driven by ever-increasing technological demands, Japan is well positioned to serve as a manufacturing hub, offering foundries access to a large network of companies with long-standing experience in semiconductor manufacturing equipment, materials and components.